March 7 (Reuters) - Boeing ( BA ) said on Thursday it is
overhauling how it pays employee bonuses to emphasize quality
and safety, with this year's operational goals exclusively
focused on these two components.
This announcement comes as the planemaker has scrambled to
explain and strengthen safety procedures after a door panel
detached during a Jan. 5 flight on a brand new Alaska Airlines
737 MAX 9.
Under the new annual incentive plans, which will cover
executives, managers and employees, safety and quality metrics
will now account for 60% of the payout at Boeing's ( BA ) commercial
unit, the company said in an email to Reuters.
The Boeing Commercial Airplanes (BCA) unit manufactures
commercial aircraft, including the 737, 747 and 787, among
others.
"It's very, very important to drive the outcomes that we're
all committed to, and that's to deliver a safe and quality
product to our customer," Boeing ( BA ) COO Stephanie Pope told
employees in a webcast.
These operational safety and quality metrics will include
employee safety, traveled work, rework and completing work
needed to deliver airplanes in inventory, Boeing ( BA ) said.
Earlier at the BCA, financial incentives comprised 75% of
the annual award, while the remaining 25% was tied to
operational objectives including quality and safety.
Boeing ( BA ) said all employees will be required to complete
training courses on product safety and quality management as a
pre-condition to receiving any annual incentives.
In Boeing's ( BA ) other two units, defense and services, financial
metrics will still determine 75% of bonuses. But quality and
safety will be the only factors to determine the operational
scores, the company said.
The Federal Aviation Administration, or FAA, had barred
Boeing ( BA ) from expanding 737 production in January, saying "the
quality assurance issues we have seen are unacceptable."
WSJ first reported on the annual bonuses earlier on
Thursday, saying the move applies to Boeing's ( BA ) nonunion workforce
of more than 100,000 employees.