Current:Home > ScamsBoeing CEO David Calhoun grilled by lawmakers as new whistleblower claims emerge-InfoLens
Boeing CEO David Calhoun grilled by lawmakers as new whistleblower claims emerge
View Date:2024-12-23 15:08:18
Boeing CEO David Calhoun faced tough questioning 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.
"Proud of our safety record"
The harshest line of inquiry came from Sen. Josh Hawley, R.-Mo., who repeatedly asked Calhoun about his salary. Calhoun, who has said he plans to retire at the end of the year, earned $32.8 million in compensation last year.
"You are cutting corners, you are eliminating safety procedures, you are sticking it to your employees, you are cutting back jobs because you are trying to squeeze every piece of profit you can out of this company," Hawley said, his voice rising. "You are strip-mining Boeing."
Asked by Hawley why he had not resigned, Calhoun answered: "Senator, I'm sticking this through. I'm proud of having taken the job. I'm proud of our safety record. And I am very proud of our Boeing people."
Hawley interrupted. "You're proud of the safety record?" he asked with incredulity.
Calhoun responded, "I am proud of every action we've taken," prompting the lawmaker to say, "I think it's a travesty that you're still in your job."
Boeing announced in March that Calhoun, who was named CEO in January of 2020, would step down from that role by year-end.
Fresh whistleblower allegations
Complicating Calhoun'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 Sen. 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 April, Boeing whistleblowers told lawmakers that employees who raised concerns about manufacturing defects and quality control problems were ignored or threatened.
Boeing has denied those allegations and defended the safety of its planes.
In a statement to CBS News, Boeing said it received information about the latest whistleblower concerns 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.
Boeing's deadly Max crashes
No one was seriously injured in the Alaska Airlines incident, but the mid-air blowout 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.
- In:
- Boeing
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.
TwitterveryGood! (73)
Related
- Democrat Ruben Gallego wins Arizona US Senate race against Republican Kari Lake
- 2025 COLA estimate dips with inflation, but high daily expenses still burn seniors
- Yankees star Aaron Judge becomes fastest player to 300 home runs in MLB history
- Bills LB Matt Milano out indefinitely with torn biceps
- Mechanic dies after being 'trapped' under Amazon delivery van at Florida-based center
- Rob Schneider seeks forgiveness from daughter Elle King after 'fat camp' claims
- Have you noticed? Starbucks changed its iced coffee blend for the first time in 18 years
- Jim Harbaugh wants to hire Colin Kaepernick to Chargers' coaching staff. Will the QB bite?
- Kendall Jenner Is Back to Being a Brunette After Ditching Blonde Hair
- How you can get a free scoop of ice cream at Baskin Robbins Wednesday
Ranking
- ‘Maybe Happy Ending’ review: Darren Criss shines in one of the best musicals in years
- Indiana Fever to host 2025 WNBA All-Star game
- Wildfires are growing under climate change, and their smoke threatens farmworkers, study says
- US judge reopens $6.5 million lawsuit blaming Reno air traffic controllers for fatal crash in 2016
- 2025 Medicare Part B premium increase outpaces both Social Security COLA and inflation
- Sofía Vergara reveals why she wanted to hide her curvy figure for 'Griselda' role
- These six House races are ones to watch in this year’s election
- Get 70% Off Kate Spade, 70% Off Coach, 40% Off Banana Republic, 40% Off Disney & Today's Top Deals
Recommendation
-
Horoscopes Today, November 9, 2024
-
Massachusetts governor signs law phasing out toxic PFAS in firefighters’ gear
-
Alec Baldwin’s Rust Director Joel Souza Says On-Set Shooting “Ruined” Him
-
The Beats x Kim Kardashian Limited Edition Headphones With 40-Hour Battery Life Are Selling Out Fast!
-
Georgia public universities and colleges see enrollment rise by 6%
-
Conservative are pushing a ‘parental rights’ agenda in Florida school board races. But will it work?
-
Montana Supreme Court rules minors don’t need parental permission for abortion
-
The Sunscreen and Moisturizer Duo That Saved My Skin on a Massively Hot European Vacation