Boeing Shifts Focus To Safety And Quality In Employee Bonuses: Report

Boeing Company BA has reportedly proposed a significant overhaul in its bonus structure, shifting focus towards quality and safety metrics.

This move comes in response to recent safety concerns, notably a door panel detachment incident on an Alaska Air Group Inc ALK 737 MAX 9.

Related: Boeing 737 Max Door Plug That Flew Off Alaska Air Flight Missing 4 Key Bolts: Preliminary NTSB Report

Under the new plan, which will cover executives, managers, and employees, safety and quality metrics will now account for 60% of the payout at Boeing’s commercial unit, Reuters reported.

Earlier at the unit, financial incentives comprised 75% of the annual award, while the remaining 25% was related to operational objectives including quality and safety, the report noted.

All employees are mandated to undergo training on product safety and quality management to qualify for annual incentives.

The Federal Aviation Administration (FAA) has expressed concerns over Boeing’s quality assurance practices, prompting the company to reassess its operational priorities.

The report further specified that Boeing’s nonunion workforce, exceeding 100,000 employees, will be subject to these revised bonus structures.

Also Read: Boeing Wins $439.6M Contract From US Space Force; Ethiopian Airlines Orders Up To 20 Jets

Price Action: BA shares are trading lower by 0.99% at $201.01 in premarket on the last check Friday.

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