Updated March 8th, 2024 at 08:03 IST

Boeing overhauls bonus system to prioritise safety and quality

The changes will impact Boeing's nonunion workforce of over 100,000 employees, managers, and executives.

Reported by: Business Desk
The 777 jet by Boeing. | Image:Boeing

Boeing boosts safety: Boeing is revising its employee bonus structure to prioritise safety and quality, according to a Wall Street Journal report. This comes in response to production issues discovered after an incident involving an Alaska Airlines aircraft door plug blowout.

The changes will impact Boeing's nonunion workforce of over 100,000 employees, managers, and executives. In the commercial unit, the emphasis on safety and quality in annual bonuses will increase to 60 per cent, up from the previous 25 per cent. This shift aims to address the company's quality concerns.

Metrics such as employee safety, work sequence on the assembly line, and rework required to address issues will determine rewards. In Boeing's defence and services units, financial metrics will continue to account for 75 per cent of bonuses, with quality and safety now influencing operational scores.

Overall, executives' bonuses, including CEO Dave Calhoun, will be determined by the average scores across all units. Boeing has yet to comment on these changes.

The company has faced scrutiny since a mid-air emergency involving an Alaska Airlines 737 MAX 9 on January 5. The Federal Aviation Administration's restrictions on 737 production expansion and criticism of quality assurance highlights the importance of Boeing's focus on prioritising safety and quality in its operations.

(With Reuters Inputs)

Published March 8th, 2024 at 08:03 IST