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Boeing will reward employees 'for speaking up to slow things down,' CEO says

Feb 1, 2024, 17:59 IST
Business Insider
A 737 Max 10 and Boeing staff at the 2022 Farnborough Airshow.Richard Baker/In Pictures via Getty Images
  • Boeing CEO Dave Calhoun said the company "will reward employees for speaking up to slow things down."
  • The manufacturer is working to improve quality and regain trust after the Alaska Airlines blowout.
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Boeing's CEO says the company will reward employees who call out problems with its production processes.

"We will encourage and reward employees for speaking up to slow things down if that's what's needed," said Dave Calhoun during Boeing's fourth-quarter earnings call on Wednesday.

Earlier in the day, Calhoun sent a memo to employees that echoed that sentiment, but didn't mention a reward.

The company has faced increased criticism after a 737 Max 9 jet — that was delivered to Alaska Airlines just 66 days earlier — lost a door plug in midair.

When National Transportation Safety Board investigators recovered the door plug, they learned four bolts designed to secure it were missing. The Wall Street Journal reported that those bolts weren't in place when the plane left Boeing's factory.

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"We caused the problem, and we understand that," Calhoun said Wednesday.

He praised Alaska Airlines for grounding its Max 9 fleet before the Federal Aviation Administration intervened the day after the incident.

Also during the earnings call, Calhoun appeared to address concerns that Boeing's culture values profit above engineering and safety.

Many critics, including United Airlines CEO Scott Kirby, have pointed to Boeing's 1997 merger with McDonnell Douglas as a pivotal moment when finances took precedence.

Calhoun said Boeing is focused on "getting back to our legacy of having engineering excellence at the center of our business."

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Boeing declined to offer a financial forecast for 2024 in its earnings report, emphasizing its focus on solving production problems.

"Now is not the time for that," Calhoun said. "We won't predict timing. We won't get ahead of our regulator. We will go slow to go fast."

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