ENSPIRING.ai: 'Boeing Has A Leadership Problem' - Hawley Demands FAA Administrator Conduct Tough Oversight

ENSPIRING.ai: 'Boeing Has A Leadership Problem' - Hawley Demands FAA Administrator Conduct Tough Oversight

The discussion in the video delves into an intense scrutiny of the relationship between the FAA and Boeing, with detailed insights into how previous interactions might have led to compromises on technical disagreements, potentially jeopardizing safety due to over-familiarity between the two entities. Concerns are marked over how such ties might have contributed to lapses in rigorous oversight, especially during the development of crucial projects like the Boeing 737 Max.

allegations arise particularly from whistleblower reports indicating favoritism and inconsistency in FAA inspections based on which inspectors are allocated for Boeing assessments. Furthermore, these reports highlight suspicions around how whistleblowers have been treated, especially regarding promised protections and possible retaliation faced by those report issues. The discussion reveals efforts to enhance transparency and improve safety protocols to address these issues.

Main takeaways from the video:

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The relationship between FAA and Boeing faced criticism due to concerns over insufficiently rigorous oversight.
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Whistleblowers reported favoritism towards certain FAA inspectors and alleged retaliatory actions by Boeing.
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FAA officials highlight efforts to reform oversight processes, increase spontaneity in inspections, and ensure proper whistleblower protections.
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Key Vocabularies and Common Phrases:

1. fraternal [frəˈtɜːrnəl] - (adjective) - Relating to brothers; characterized by or forming brotherhood. - Synonyms: (brotherly, brother-like, congenial)

...that the relationship between your agency and Boeing was, quote, almost fraternal, end quote.

2. rigorous [ˈrɪɡərəs] - (adjective) - Extremely thorough and careful. - Synonyms: (thorough, meticulous, scrupulous)

...not the sort of rigorous oversight that's necessary being provided?

3. retaliation [rɪˈtæliˌeɪʃən] - (noun) - The action of returning a military attack; counterattack. - Synonyms: (revenge, retribution, reprisal)

This whistleblower stated that if you don't say you fear retaliation during an initial call with the FAA, you don't get whistleblower protection.

4. allegations [ˌælɪˈɡeɪʃənz] - (noun) - Claims or assertions that someone has done something illegal or wrong, typically without proof. - Synonyms: (accusations, claims, assertions)

Are you aware of things like this happening? I'm aware of allegations of retaliation...

5. whistleblower [ˈwɪsəlˌbloʊər] - (noun) - A person who informs on a person or organization regarded as engaging in unlawful or immoral activity. - Synonyms: (informant, snitch, tattletale)

Let me ask you about some whistleblower allegations.

6. oversight [ˈoʊvərˌsaɪt] - (noun) - An unintentional failure to notice or do something. - Synonyms: (supervision, management, surveillance)

...potential conflicts of interest or otherwise not the sort of rigorous oversight that's necessary being provided?

7. audit [ˈɔːdɪt] - (noun) - An official inspection of an organization's accounts, typically by an independent body. - Synonyms: (inspection, examination, scrutiny)

Those tend to get scheduled. They're fairly intensive, weeks long audits.

8. scrutiny [ˈskruːtəni] - (noun) - Critical observation or examination. - Synonyms: (inspection, analysis, review)

...tries to retaliate, but sort of on the sly, as it were, and evade any FAA accountability or scrutiny.

9. evade [ɪˈveɪd] - (verb) - Escape or avoid, especially by cleverness or trickery. - Synonyms: (dodge, avoid, sidestep)

...tries to retaliate, but sort of on the sly, as it were, and evade any FAA accountability or scrutiny.

10. confidentiality [ˌkɒnˌfɪdɛnʃiˈælɪti] - (noun) - The state of keeping or being kept secret or private. - Synonyms: (secrecy, privacy, discretion)

...and really the key to this system working is having that confidentiality.

'Boeing Has A Leadership Problem' - Hawley Demands FAA Administrator Conduct Tough Oversight

Thank you very much. Thank you, Mister chairman. And thank you, Senator Johnson. Mister Whitaker, let me start with some press reporting. I've read press claims that managers at both FAA and Boeing often agreed, I'm going to quote now, to table disagreements about technical issues in order to avoid delays, and that the relationship between your agency and Boeing was, quote, almost fraternal, end quote. Is that, does that strike you as accurate in the time that you've been in your position?

Well, in the time that I've been in my position, and particularly since January 5, I would not use that to characterize the relationship. Now, have you found in looking back at your agency's conduct, are you worried about Boeing employees and FAA regulators being too close, potential conflicts of interest or otherwise not the sort of rigorous oversight that's necessary being provided? I think there have been various chapters in that relationship, and I think particularly with the development of the max, some of the delegation of authorities that took place, and some of the processes in that era showed some culture problems between the two. So we're very focused on making sure that happens. And we also monitor to make sure we're not having regulatory capture and rotating our inspectors and our executives to ensure that.

Let me ask you about some whistleblower allegations. Since Mister Calhoun testified here back in June, a number of whistleblowers have contacted my office. One whistleblower told my office that Boeing would routinely tried to schedule inspections based on which FAA investigators were coming because some FAA investigators were known to be more inclined to provide sign offs. I think we've got a quote about this. When this whistleblower brought this up to Boeing, namely this sort of disparate treatment by different investigators, that he was brought into an office and told, don't push and do whatever your career can handle. My question is, does the FAA now or has it in the past allow Boeing to schedule which inspections occur with specific investigators for certifying aircraft?

There are various types of inspections. Some of those are large paperwork inspections. Those tend to get scheduled. They're fairly intensive, weeks long audits. The primary inspection happens on the floor, and particularly now that we have inspectors on the floor. I visited with the inspectors in Charleston and walked the floor with them. They have the opportunity to join the briefing meetings in the morning, the various level of management meetings, but more importantly, engage actually with the employees. So I think in this new regime we've had in place for the last nine months, we have a much more of an ability to have a spontaneous inspection procedures and get better data that way.

Okay. So it sounds like it's a yes, maybe. As to paperwork inspections, as to in person inspections, you are not currently allowing there to be scheduled inspections, is that right? Those are more spontaneous. And in fact, if an inspector sees something, he doesn't like it on the spot, he can say, can I see the paperwork? Can I talk to the person that did this and effectively go through an inspection at that point? Have you allowed, has the agency allowed scheduled inspections of any kind in the past? Just, just of the audit nature, both with the quality systems for Boeing, which are basically auditing their manuals and procedures, and also similar inspections that happen with suppliers.

Let me ask you about another whistleblower report. This whistleblower, different person, told my office that she would report scores of technical issues. But when she did that, those reports were not well received by Boeing. No surprise, given how Boeing has behaved. Here's the thing that particularly interested me. This whistleblower stated that if you don't, if you go to the FAA, I'm going to quote her now. If you don't say you fear retaliation during an initial call with the FAA, you don't get whistleblower protection. I think we've got that quote as well. If you don't say you fear retaliation during the initial call with the FAA, you don't get whistleblower protection.

Is that accurate? That is not accurate. You get full whistleblower protection with each outreach. Okay. So the FAA is not requiring whistleblowers to explicitly state that they fear retaliation in order to get whistleblower protection as defined by law. Is that correct? Is that correct? Yes, sir. What are you doing to ensure that any whistleblower who comes forward to you, whether from Boeing or anywhere else, is guaranteed the full whistleblower protections they are entitled to under the statute in 2023, we beefed up our department that added a number of inspectors, and they're all very well trained on what the protocols are. And really the key to this system working is having that confidentiality. It is really the cornerstone of the system working. So we encourage people to speak up and we are bending over backwards to make sure they're protected.

Let me ask you about another whistleblower report. This whistleblower says that when she would go to the FAA with her concerns, these are reports of technical issues, other corner cutting by Boeing that she often got relegated to an undesirable role. In other words, she was retaliated against in one example, for instance, she did not receive overtime in her new role, which resulted in a $30,000 pay hit. And this whistleblower alleged Boeing routinely conducts retaliation in this way without raising any formal alarm bells, in other words, tries to retaliate, but sort of on the sly, as it were, and evade any FAA accountability or scrutiny.

Are you aware of things like this happening? I'm aware of allegations of retaliation, and it has been a focus as we look at the safety culture change that has to happen. A key part of that is a robust whistleblower program that does not have retaliation. That's going to involve training of management so they know how to treat employees. And anytime we get an allegation of retaliation, we bring in the department of labor and OSHA to investigate as well. And so has that happened recently? I mean, are you investigating, have you brought in other relevant federal agencies to investigate possible cases of retaliation as it relates to Boeing?

We routinely would bring in the Department of Labor if there's a retaliation allegation you say routinely. But I guess I'm looking for, as it relates to Boeing, while you have been in your role, have there been instances where you've had to go after them for potential retaliation? I can get that information and provide it to your office. Okay.

Yeah, that would be helpful in my time remaining here. Let me just ask about something you testified to back in June when you were before the commerce committee. You're talking about changing your approach to inspecting Boeing production facilities. But one former FAA official has commented that 150 inspectors is a drop in the bucket compared to the amount of work that goes on at a typical Boeing production facility. Boeing says they have 170,000 employees. The Boeing facility in written Washington, for example, where the 737s are produced, has a million square feet. How many inspectors do you have on the floor at Rentone, for example?

I could give you the precise number. We currently have eleven. And by the end of the year, we plan to have 13 inspectors there. So you have eleven on a floor of a million square feet. There are 12,000 employees at Renton. Are those numbers adequate? Right. Our current assessment is this is a good start, and these inspectors are able to walk the line and talk to employees. And we feel like we're pretty well covered. But we will continue to evaluate that number as we go forward.

Well, my time has expired. Thank you, mister chairman. Thank you, Senator Johnson, for allowing me to ask these questions. I just want to say in closing that, listen, what's happened at Boeing is absolutely unacceptable. As I said to the CEO when he was sitting right where you are, for the CEO to have gotten a 45% pay increase, as he did year over year, while he wasn't paying his machinists out of the Pacific Northwest while his planes are literally falling out of the sky is absolutely reprehensible. They are destroying, he is destroying a great american company. And I don't buy this stuff. That Boeing has a culture problem, Boeing has a leadership problem. And I just want to make sure. Mister Whitaker, I'm glad you're doing the job you're doing. I want to make sure your agency is holding their feet to the fire. I worry about these reports, that there's this sort of fratty culture between the FAA and Boeing. We need tough oversight there, and we're counting on you to provide that. Because frankly, the american public deserve it when they get into an airplane. And the good people who work for Boeing deserve to be protected. Thank you Mister chairman. Thanks.

Aviation Safety, Regulatory Oversight, Whistleblower Protection, Politics, Technology, Leadership, Senator Josh Hawley