Boeing to Tie More of Employees’ Pay to Safety — WSJ
By Sharon Terlep Under fire for production snafus, Boeing is overhauling how it pays employee bonuses to emphasize quality and safety over meeting financial targets. The move, one of many to address quality issues following the door-plug blowout on an Alaska Air flight, applies to Boeing’s nonunion workforce of more than 100,000 employees, managers and executives, according to a memo sent to employees and reviewed by The Wall Street Journal. The biggest shift will be in the company’s commercial unit, its largest, where safety and quality metrics will now account for 60% of annual bonuses. Previously, financial incentives comprised 75% of the annual award, while the remaining 25% was tied to operational objectives including quality and safety. Metrics that will determine the rewards include employee safety, work done out of sequence on the assembly line and so-called rework required to fix problems. Regulators have criticized the company’s quality controls and […]
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