‘I know it happens’: Boeing chief admits the company has retaliated against whistleblowers

Sen. Richard Blumenthal on Tuesday gave a hint about how many Boeing whistleblowers there are. “We have more than a dozen whistleblowers by this point, and we encourage more to come forward,” the senator said early in the hearing.

And a memo by committee staff on Boeing – clocking in at more than 200 pages with attachments – mentions the range of people who have stepped forward, as well.

“Since opening the inquiry, the Subcommittee has received outreach from additional whistleblowers in the aviation industry, including individuals with firsthand knowledge of Boeing’s operations and policies, who have come forward with new information about additional safety risks stemming from Boeing’s manufacturing practices,” the memo reads.

“Some whistleblowers who have come forward to the Subcommittee wish to remain anonymous, but others have either spoken out publicly or are willing to have their stories be public for the first time.”

FAA Administrator Mike Whitaker testifies before a Senate Commerce Committee hearing on June 13.

Boeing isn’t alone in feeling lawmakers’ ire over their aircraft.

Last week, Federal Aviation Administration chief Mike Whitaker said his agency was also responsible for Boeing’s safety problems, admitting before the Senate Commerce Committee that the FAA had been “too hands off” in its oversight of the troubled aircraft manufacturer.

Sen. Maria Cantwell, a Democrat from Washington state, questioned the backgrounds of some of the FAA’s safety inspectors.

“I’m definitely hearing ‘We don’t have enough aviation inspectors.’ And ‘We don’t even have enough qualified instructors at schools,’” she said at the hearing. “One story I heard was that they said, ‘Yes, I have safety experience. But it’s in the dairy industry.’ We need an aviation inspector on the floor who has aviation experience, not just safety experience.”

Read the whole story here.

The hearing in Washington today had some poignant and spicy moments.

For all the mistakes and safety problems Boeing has managed under CEO Dave Calhoun’s watch — resulting in a dozen corporate whistleblowers, multiple groundings and a chunk of a plane’s fuselage literally blowing off in midair — virtually no one has held him to account.

Certainly not Boeing’s board of directors, which has responded by lavishing him with a salary and stock options worth more than $20 million a year, plus a $45 million golden parachute when he retires later this year.

The hearing in Washington may not have fully satisfied family members of victims who have died in Boeing airplanes or other people affected by the companies misfires in 2024. But the hearing showed flashes of accountability and hard questions.

Tuesday marked the first time ever that Calhoun has had to testify before lawmakers. He faced an intense grilling, fielding one biting question after the next from both Republican and Democratic senators.

Clariss Moore of Toronto, Canada, holds a photograph of her daughter Danielle Moore and stands with other family members of those killed in the Ethiopian Airlines Flight 302 and Lion Air Flight 610 as Boeing CEO Dave Calhoun he departs following the Senate hearing today.

As Boeing CEO David Calhoun stood to leave the hearing room, families once again held pictures of loved ones who died in a 737 Max crash. 

“How could you?” yelled Clariss Moore — mother of Danielle Moore, a traveler who died in a crash in Ethiopia in 2019 — as Calhoun exited the room.

In an interview with CNN, Moore said that she was not satisfied with Calhoun’s apology and called for criminal prosecution against him and other Boeing executives.

Several other family members who attended the hearing, gathered outside the Senate hearing room and expressed a similar sentiment. Many called for criminal prosecution, saying that the executives have not been held accountable.

They also expressed outrage at Calhoun’s salary — $32.8 million per year — with Moore saying to CNN “is that the cost of my daughter’s life?”

The families were also dismayed at Calhoun’s inability to answer several Senators’ questions during the hearing. Calhoun promised to follow up with the committee with these answers.

A Boeing 737 MAX 8 is pictured outside the factory on March 11, 2019 in Renton, Washington. 

Despite the attention Tuesday’s hearing about Boeing’s safety problems will garner, it’s not clear whether it will produce significant change at the company, said Richard Aboulafia, managing partner for AeroDynamic Consultancy, an aerospace advisory firm.

Calhoun announced plans to retire before the end of this year. His successor has yet to be selected. Calhoun said he has a preferred candidate but he has not publicly identified that person and said the decision is up to the search committee and Boeing’s board.

Aboulafia said the board has shown little indication of seeing a need to change the way things are done at Boeing, calling it a “board on autopilot.” The board approved a $32.8 million pay package for Calhoun in 2023, a 45% increase from the $22.6 million he received for 2022. And it could have been a lot more: He declined to accept his annual incentive bonus of $2.8 million – a request the board said he made after the Alaska Air incident.

At the end of the hearing Tuesday Calhoun pointed out that there have been changes among Boeing top mangers since the two fatal crashes and the grounding of the Max in 2019 and 2020, as well as additional management changes since the Alaska Air incident.

He defended using internal candidates from Boeing to fill the open positions.

“We try to select people who know a lot about airplanes,” he said.

But Senator Richard Blumenthal, the chairman of the subcommittee, argued that Boeing needed to turn to outsiders to make a true change in the culture at the company.

Blumenthal said Boeing’s practice appears to be to shift the blame from the top down.

“In effect, scapegoat workers rather than the management team responsible ultimately for conducting the company,” Blumenthal said.

Blumenthal said Boeing blamed an employee a few weeks ago, when the employee brought up concerns about falsified records and tests during the assembly of a 787 in South Carolina.

“I think that you have certainly demonstrated that you can talk about these changes, but making the changes may well require a different team,” he said.

Boeing CEO Dave Calhoun was unable to answer Senator Richard Blumenthal’s questions on more than one occasion during his Senate testimony.

When asked about the settlement that Boeing paid, including a $243 million criminal penalty, after two deadly crashes involving its 737 Max aircraft more than five years ago, Calhoun stumbled, saying he didn’t know the precise dollar amount.

“You must know the precise number. You’re the CEO of the company,” Blumenthal said.

Calhoun also said he didn’t have a “precise number” when asked how much of Boeing’s total settlement amount was covered by insurance. He also said he didn’t “have an answer” to whether Boeing had taken tax deductions on the settlement amount to reduce its impact on the company.

“You don’t have an answer to that, as the CEO of the company? I find that hard to believe,” Blumenthal said.

Earlier in the hearing, Blumenthal asked Calhoun how many Boeing employees had been fired for “retaliating against whistleblowers,” which Calhoun had said was against Boeing company policy.

“Senator, I don’t have that number on the tip of my tongue,” Calhoun said. “But I know it happens.”

“I am happy to follow up and get you that number,” he added.

Senator Josh Hawley (R-MO) questions Boeing's CEO Dave Calhoun during a Senate Homeland Security and Governmental Affairs Committee Investigations Subcommittee hearing on the safety culture at Boeing, on Capitol Hill in Washington on June 18.

Republican Sen. Josh Hawley accused Boeing CEO Dave Calhoun of trying to blame the company’s problems on the employees, when it’s actually the management’s fault.

Hawley said Boeing’s machinists and engineers are probably the best in the world.

“You’re the problem,” he said to Calhoun. “And I just hope to God you don’t destroy this company before it can be saved.”

Boeing CEO Dave Calhoun testifies before the Senate Homeland Security and Governmental Affairs Subcommittee on Investigations today in Washington.

Boeing CEO Dave Calhoun has already announced plans to retire by the end of this year. But for Senator Josh Hawley, that’s not soon enough.

In a brutal back and forth during Tuesday’s hearing on Boeing’s broken safety culture, the Missouri Republican questioned Calhoun about how much money he was paid. Calhoun declined to answer directly, responding only “It’s a big number.”

Hawley cited the $32.8 million in salary that was reported by Boeing for his pay in 2023, which was a 45% increase over the previous year.

After Calhoun conceded the company had not seen a profit in his four years as CEO and that its stock price was down over that period, Hawley cited the salary and pay raise again and said, “If anyone has come out of this deal good, it’s you,”

“Why haven’t you resigned?” Hawley followed up.

“Senator, I’m sticking this through. I’m proud of having taken the job. I’m proud of this safety record, and I’m proud of our Boeing people,” Calhoun replied.

“You’re proud of this safety record?” Hawley asked incredulously.

“I’m proud of every action we have taken,” Calhoun replied.

“Every action you’ve taken?” Hawley asked again.

“Yes, sir,” Calhoun said.

“Wow. There’s some news for you,” Hawley concluded.

US Senator Josh Hawley (R-MO) speaks as Boeing President and CEO Dave Calhoun testifies during a Senate Homeland Security and Governmental Affairs Committee Investigations Subcommittee hearing to examine "Boeing's broken safety culture" on Capitol Hill today.

Missouri Republican Sen. Josh Hawley highlighted Boeing CEO Dave Calhoun’s salary — $32.8 million this year, which is a 45% increase over last year — and asked what Calhoun gets “paid to do exactly.”

“I get paid to run the Boeing company,” Calhoun answered.

Hawley asked if transparency and safety are part of that job description, and Calhoun said yes.

Later in the exchange, Hawley challenged Calhoun even more.

So far, Republican and Democratic senators both have delivered sharp criticism on Boeing’s safety, transparency and quality.

While CEO Dave Calhoun has apologized to the family members of Boeing 737 Max victims and acknowledged people and culture issues internal to the company, senators are raising concerns about the response from the company so far and indicating a lack of trust in management to do the right thing.

Boeing CEO Dave Calhoun appears before a Senate Homeland Security and Governmental Affairs Investigations Subcommittee hearing on Boeing's broken safety culture on Capitol Hill on June 18, 2024 in Washington, DC. 

Boeing CEO Dave Calhoun acknowledged that the company has retaliated against whistleblowers.

“I know it happens,” he said.

When Sen. Richard Blumenthal asked if Boeing fired any of its employees who retaliated against whistleblowers, Calhoun said he didn’t have the numbers, but emphasized that he knows that the retaliation has happened.

In his opening remarks, CEO Dave Calhoun said Boeing is listening to safety concerns raised by whistleblowers at the company. A few minutes later, he admitted he wasn’t the one listening.

Under questioning by subcomittee ranking member Ron Johnson of Wisconsin about whether or not he had spoken to any of the whistleblowers, Calhoun replied: “I have not directly spoken to any families of whistleblowers.”

“Do you think that would be a good idea?” Johnson asked.

“Yeah,” Calhoun responded.

“I’d recommend it,” Johnson added.

Subcommittee chairman Richard Blumenthal of Connecticut said his staff has spoken to more than two dozen Boeing whistleblowers who have raised a variety of issues, including the use of parts that do not comply with company specifications, and actions to hide those parts from regulators.

Blumenthal said those who have spoken up have told of retaliation and pressure to shut up about their complaints.

He said that one whistleblower, John Barnett, who police ruled died by suicide earlier this year, had testified that a supervisor had called him about 20 times a day, and when Barnett questioned the calls, he was told by the supervisor “I’m going to push you until you break.”

“He broke,” Blumenthal said.

Under questioning, Calhoun told Blumenthal that Boeing had disciplined and even fired supervisors who had retaliated against whistleblowers. But he said he couldn’t give an exact number.

Boeing's CEO Dave Calhoun faces families and apologizes for the loss of their loved ones upon his arrival to testify before a Senate Homeland Security and Governmental Affairs Committee Investigations Subcommittee hearing on the safety culture at Boeing, on Capitol Hill in Washington, today.

Before his opening remarks, Boeing CEO Dave Calhoun stood from the witness table, turned around to face family members of Boeing 737 Max victims and apologized.

One attendee responded, “you should be in jail.”

Calhoun returned to the witness table and began delivering his opening statement.

US Senator and Chairman Richard Blumenthal, Democrat of Connecticut, with Senator Ron Johnson (R), Republican of Wisconsin, speaks as Boeing President and CEO Dave Calhoun testifies during a Senate Homeland Security and Governmental Affairs Committee Investigations Subcommittee hearing to examine "Boeing's broken safety culture" on Capitol Hill today.

Boeing’s latest leadership changes look like “management musical chairs,” said Sen. Richard Blumenthal, who chairs the subcommittee.

While the Justice Department investigation is underway, Blumenthal said it is an important moment for Boeing, regardless of the investigation’s results.

“The Department of Justice will conclude this investigation to make its independent decision about whether to prosecute. But for Boeing, regardless of that decision, it is a moment of reckoning and an opportunity to change a broken safety culture,” he said in his opening remarks.

Relatives of Boeing airplane crash victims demonstrate as Boeing President and CEO Dave Calhoun (R) arrives to testify during a Senate Homeland Security and Governmental Affairs Committee Investigations Subcommittee hearing to examine "Boeing's broken safety culture" on Capitol Hill in Washington, DC, today.

Boeing CEO Dave Calhoun walked into an unfriendly room in the Hart Senate Office building Tuesday.

In the rows behind him were critics of Boeing from multiple angles: family members of Boeing 737 Max victims holding photos of their loved ones, and demonstrators wearing keffiyehs and red paint on their hands.

“Stop sending weapons to Israel,” one person called out.

“Make safe planes for commercial flight,” exclaimed another.

Calhoun walked to the dais at the front of the room and shook hands with Chairman Richard Blumenthal, a Connecticut Democrat. He then took a seat in at the witness table alongside Boeing’s chief engineer.

Family members of the crash victims of the Boeing 737 MAX8 in Ethiopia, hold photographs during a news conference on Capitol Hill, Tuesday, June 18, 2024, in Washington.

The Senate hearing with Boeing CEO Dave Calhoun started with Senator Richard Blumenthal, the subcommittee chairman, recognizing family members of the two fatal crashes.

Those family members included families of four of the 346 who died in two crashes, one in October 2018 in Indonesia, and one in 2019, in Ethiopia. They all stood and held photos of their late family members.

In addition there were two family members of John Barnett, a Boeing whistleblower who died earlier this year from what police have ruled to be a self-inflicted gunshot wound. Blumenthal said Barnett’s death came “under the immense pressure the company put on him.”

“To all of you, thank you for having the strength and courage to be with us. We are deeply sorry for your losses,” said Blumenthal. He said it was important to start the hearing by recognizing those who had died.

“The issues before us today have real human consequences. Life and death results. Not just abstract numbers,” said Blumenthal. “This hearing is a moment of reckoning. It’s about a company, once an iconic company known for engineering excellence and product prowess, that somehow lost its way.”

Calhoun started his opening remarks with an apology to the family members of the people who died in the two 737 Max crashes, as well as the passengers and crew who were on the January 5 Alaska Airlines Boeing 737 Max flight that had a door plug blow out, leaving a gaping hole in the side of the plane.

“I apologize to the grief we have caused,” he said, as he turned around to face the family members who were present. “I want you to know we are totally committed to work focused on safety. … I’m sorry.”

Families of victims walked into the hearing room with photos of their family members. They are in the third row, according to CNN team members present in the room. Behind them in the fourth row are several pro-Palestinian protesters with fake blood on their hands.

As Boeing chief Dave Calhoun walked into the room ahead of his Senate testimony, protesters said, “shame.”

Other people were heard saying, “how do you sleep at night?” and “focus on making safe planes at home.”

Boeing CEO Dave Calhoun walks past after speaking with reporters on Capitol Hill in Washington, DC, on January 24, 2024, before meeting with a group of senators.

Ahead of the Senate hearing, outgoing Boeing chief Dave Calhoun said he is “here to take responsibility.”

He walked away without answering any reporters’ questions.

Calhoun is scheduled to appear before the Senate Permanent Subcommittee on Investigations today at 2 p.m. ET.

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John Barnett, a former Boeing quality manager, at his home in Goose Creek, S.C., on April 6, 2019.

John Barnett was a Boeing employee for more than 30 years, including seven as a quality manager in Charleston, South Carolina, where the 787 is assembled. He died from an apparent self-inflicted gunshot wound in March, according to police in Charleston. But before his death he had raised numerous questions about the quality and safety of planes at the factory, bringing a suit against Boeing charging that he faced illegal retaliation for raising those safety concerns.

One of the problems that Barnett cited, according to the Senate investigators’ report released Tuesday, was the question about how Boeing accounted for the parts that did not meet company specifications.

In a deposition in his lawsuit cited in the Senate report, Barnett said that managers at Boeing “directed him to falsify records that would resolve the disposition of lost nonconforming parts in the company’s Quality Management System where parts are tracked. When Mr. Barnett refused, insisting that the parts either had to be found, or their missing status reported to the FAA, he allegedly was told, ‘Absolutely not. We are not reporting anything to the FAA.’”

After the New York Times first reported some of Barnett’s allegations in the spring of 2019, Boeing released a statement sent to the plant’s employees in which Brad Zaback, a site leader at the plant and general manager of the 787 program, said the Times’ report “paints a skewed and inaccurate picture of the program and of our team (at the plant).”

Zaback said that “quality is the bedrock of who we are,” adding that the plant delivers “the highest quality airplanes.”

The question about the use and tracking of nonconforming parts is likely to get a lot of attention at Tuesday’s hearing.

Barnett’s friends and family have told reporters that they still don’t believe he committed suicide. In March after his death Boeing issued a statement saying “Our thoughts are with his family and friends.”