Boeing Overhauls Worker Bonus Structure to Prioritize Safety and Quality
Boeing Overhauls Worker Bonus Structure to Prioritize Safety and Quality
Boeing Co. announced that it will make safety and quality a significantly larger metric for worker bonuses. The decision comes after a series of safety lapses damaged the company's reputation.
\nThe biggest change will see workers in Boeing's Commercial Airplanes division base 60% of their annual incentive scores on safety and quality metrics. Previously, 75% of the score was based on financial metrics, while operational metrics held only a 25% share and included objectives beyond safety and quality.
\nThese changes were announced to all employees on March 7, two months after an incident in which a door plug flew off a new Boeing 737 Max operated by Alaska Airlines shortly after takeoff, nearly resulting in catastrophe. No one was injured in the incident and the aircraft landed safely.
\nBoeing's Chief Operating Officer Stephanie Pope stressed the importance of continuing the company's commitment to delivering safe and quality products. Additionally, on March 6, U.S. accident investigators made an unusual criticism that Boeing officials had not cooperated in the investigation of how the panel came off.
\nInvestigators are also examining another 737 Max incident in which the aircraft's rudder system malfunctioned during landing by pilots.
\nBoeing's other business units will see minor changes to their bonus structures. In the Defense, Space and Security division and Boeing Global Services, operational metrics will continue to comprise 25% of the business unit scores, but will focus solely on safety and quality. The corporate plan will average the scores of the three business units.
\nKey Takeaways
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Boeing will increase safety and quality metrics in worker bonuses.
\n In the Commercial Airplanes division, 60% of annual incentive scores will be based on safety and quality.
\n The changes follow a near-catastrophic incident involving a Boeing 737 Max aircraft.
\n U.S. accident investigators criticized Boeing for failing to cooperate.
\n Minor changes will be made in the Defense, Space and Security and Boeing Global Services divisions.
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