A federal judge in Texas on Thursday reversed a plea agreement between Boeing and the Department of Justice in connection with two 737 MAX crashes, saying the agreement improperly imposed diversity considerations in selecting compliance monitors. The court ruled that it was.
U.S. District Judge Reed O’Connor ruled that the Justice Department’s agreement with Boeing unduly limited the court’s decision-making authority and improperly focused on diversity in selecting supervisory monitors. I put it down. According to In court documents. O’Connor said the Justice Department’s reasons for considering race and diversity when appointing compliance monitors don’t quite add up.
“These provisions are inappropriate and contrary to the public interest,” O’Connor wrote.
Boeing entered a guilty plea in July to criminal fraud charges stemming from incidents in 2018 and 2019 that claimed a combined 346 lives. The plea agreement also included a $244 million criminal fine against Boeing and continued corporate probation.
O’Connor also criticized how the Justice Department handled the original trial period agreement, suggesting it was not effective in ensuring Boeing complied with safety standards. He argued that appointed monitors should report directly to the courts rather than the Justice Department and that safety standards should be strengthened. Surveillance and public trust.
‘Be thorough with your employees’: Josh Hawley tells Boeing CEO, ‘It’s a travesty that I still have a job.’ pic.twitter.com/FuNjFnG9b4
— Daily Caller (@DailyCaller) June 18, 2024
The ruling comes after a ruptured fuselage panel on a 737 MAX operated by Alaska Airlines in January sparked renewed attention to Boeing’s safety practices. In response, the Justice Department charged Boeing with violating the terms of his probation in early May. (Related: Air Force employees paid nearly 8,000% more than they should have paid for aircraft soap dispensers, watchdog finds)
Boeing eliminated its Global Diversity, Equity and Inclusion (DEI) division in October following severe financial woes, ongoing union strikes, and growing concerns about safety and production. The company redeployed its DEI staff to improve the employee experience, with the aim of streamlining operations amidst various challenges.
Boeing also announced a 10% reduction in its workforce in October, cutting about 17,000 jobs due to an extended machinists’ strike. CEO Kelly Ortberg announced the layoffs as part of a strategy to address ongoing financial and operational challenges, streamline operations and prevent further furloughs.
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