Outgoing Boeing CEO to testify before Senate
Boeing CEO David Calhoun faced questions from lawmakers on Tuesday about the aviation giant’s safety and manufacturing practices, making his first appearance before Congress since a panel blew off a 737 Max during an Alaska Airlines flight in January.
Calhoun told the Senate investigations subcommittee that Boeing’s culture is “far from perfect,” but said the company is “committed to making sure every employee feels empowered to speak up if there is a problem.” He also said Boeing is working on improving “transparency and accountability, while elevating employee engagement.”
Calhoun, CEO of Boeing since January 2020, prefaced his remarks by standing up and addressing relatives in attendance of those who died in two 737 Max crashes in 2018 and 2019. “We are totally committed in their memory to focus on safety. Again, I am sorry,” the executive stated as multiple people held up photographs of those who died.
Complicating the executive’s task was the Senate panel’s release on Tuesday of information from two additional Boeing whistleblowers who have recently emerged and raised concerns about the company’s practices.
One, current Boeing employee Sam Mohawk, alleged in a statement made public by the subcommittee that “Boeing is improperly documenting, tracking and storing parts that are damaged or otherwise out of specification, and that those parts are likely being installed on airplanes.” He also claimed that his supervisors told him to conceal evidence from the Federal Aviation Administration, according to the Senate subcommittee.
The second whistleblower, who is anonymous, alleged to the subcommittee that Boeing has sought to eliminate independent quality inspections, instead tapping workers to inspect their own work and that of their co-workers.
“This is a culture that continues to prioritize profits, push limits and disregard its workers,” said Senator Richard Blumenthal, a Democrat from Connecticut and a Boeing critic who is also the chair of the subcommittee, in a Tuesday statement. “A culture where those who speak up are silenced and sidelined while blame is pushed down to the factory floor.”
In a statement to CBS News, Boeing said it received information about the new whistleblowers on Monday evening and is reviewing their claims. “We continuously encourage employees to report all concerns as our priority is to ensure the safety of our airplanes and the flying public,” the company said.
Boeing earlier this year denied claims it had reduced the number of safety inspectors.
“In January 2019, a senior Boeing quality executive told The Seattle Times that the company planned to reduce inspector roles in its Quality organization by 900 people and reform how it conducts quality checks as it integrated technology and monitoring into the secondary inspection process. However, Boeing did not reduce these inspector roles, has grown our Quality team and has increased the number of inspections per airplane significantly since 2019,” the company said in a statement at the time.
Boeing announced in March that Calhoun, who was named CEO in January of 2020, would step down from that role by year-end.
Whistleblower claims
In a Senate report about the whistleblower claims, Mohawk alleges that when Boeing restarted production of the 737 Max after two deadly crashes in 2018 and 2019 there was “a 300% increase” in reports about parts that did not meet manufacturer standards.
While hundreds of nonconforming parts were supposed to be removed from production and closely tracked, “Mohawk feared that nonconforming parts were being installed on the 737s and that could lead to a catastrophic event,” the report states.
The document says that Mohawk also claims when Boeing learned of a pending FAA inspection last June, many parts were moved to another location to “intentionally hide improperly stored parts from the FAA.”
In April, Boeing whistleblowers, including Sam Salehpour, a quality engineer at the company, testified to lawmakers.
“Despite what Boeing officials state publicly, there is no safety culture at Boeing, and employees like me who speak up about defects with its production activities and lack of quality control are ignored, marginalized, threatened, sidelined and worse,” he told members of an investigative panel of the Senate Homeland Security and Governmental Affairs Committee.
Boeing has denied Salehpour’s allegations and defended the safety of its planes, including the Dreamliner.
Boeing’s deadly Max crashes
No one was seriously injured in Alaska Airlines incident, but the incident raised fresh concerns about the company’s best-selling commercial aircraft. The National Transportation Safety Board and the Federal Aviation Administration are conducting separate investigations.
“From the beginning, we took responsibility and cooperated transparently with the NTSB and the FAA,” Calhoun said in remarks prepared for the hearing. He defended the company’s safety culture. “We are taking comprehensive action today to strengthen safety and quality.”
Blumenthal has heard that before, when Boeing was reeling from deadly Max crashes in 2018 in Indonesia and 2019 in Ethiopia.
“Five years ago, Boeing made a promise to overhaul its safety practices and culture. That promise proved empty, and the American people deserve an explanation,” Blumenthal said when he announced the hearing. He called Calhoun’s testimony a necessary step for Boeing to regain public trust.
Calhoun’s appearance also was scheduled to take place as the Justice Department considers whether to prosecute Boeing for violating terms of a settlement following the fatal crashes.
Calhoun will leave his position by the end of this year when a new CEO is named.
—With reporting by Kris Van Cleave, Kate Gibson and the Associated Press.
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Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
