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mostlysignssomeportents · 1 month

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Boeing’s deliberately defective fleet of flying sky-wreckage

I'm touring my new, nationally bestselling novel The Bezzle! Catch me TOMORROW (May 2) in WINNIPEG, then Calgary (May 3), Vancouver (May 4), Tartu, Estonia, and beyond!

Boeing's 787 "Dreamliner" is manufactured far from the company's Seattle facility, in a non-union shop in Charleston, South Carolina. At that shop, there is a cage full of defective parts that have been pulled from production because they are not airworthy.

Hundreds of parts from that Material Review Segregation Area (MRSA) were secretly pulled from that cage and installed on aircraft that are currently plying the world's skies. Among them, sections 47/48 of a 787 – the last four rows of the plane, along with its galley and rear toilets. As Moe Tkacik writes in her excellent piece on Boeing's lethally corrupt culture of financialization and whistleblower intimidation, this is a big ass chunk of an airplane, and there's no way it could go missing from the MRSA cage without a lot of people knowing about it:

https://prospect.org/infrastructure/transportation/2024-04-30-whistleblower-laws-protect-lawbreakers/

More: MRSA parts are prominently emblazoned with red marks denoting them as defective and unsafe. For a plane to escape Boeing's production line and find its way to a civilian airport near you with these defective parts installed, many people will have to see and ignore this literal red flag.

The MRSA cage was a special concern of John "Swampy" Barnett, the Boeing whistleblower who is alleged to have killed himself in March. Tkacik's earlier profile of Swampy paints a picture of a fearless, stubborn engineer who refused to go along to get along, refused to allow himself to become inured to Boeing's growing culture of profits over safety:

https://prospect.org/infrastructure/transportation/2024-03-28-suicide-mission-boeing/

Boeing is America's last aviation company and its single largest exporter. After the company was allowed to merge with its rival McDonnell-Douglas in 1997, the combined company came under MDD's notoriously financially oriented management culture. MDD CEO Harry Stonecipher became Boeing's CEO in the early 2000s. Stonecipher was a protege of Jack Welch, the man who destroyed General Electric with cuts to quality and workforce and aggressive union-busting, a classic Mafia-style "bust-out" that devoured the company's seed corn and left it a barren wasteland:

https://qz.com/1776080/how-the-mcdonnell-douglas-boeing-merger-led-to-the-737-max-crisis

Post-merger, Boeing became increasingly infected with MDD's culture. The company chased cheap, less-skilled labor to other countries and to America's great onshore-offshore sacrifice zone, the "right-to-work" American south, where bosses can fire uppity workers who balked at criminal orders, without the hassle of a union grievance.

Stonecipher was succeeded by Jim "Prince Jim" McNerney, ex-3M CEO, another Jack Welch protege (Welch spawned a botnet of sociopath looters who seized control of the country's largest, most successful firms, and drove them into the ground). McNerney had a cute name for the company's senior engineers: "phenomenally talented assholes." He created a program to help his managers force these skilled workers – everyone a Boeing who knew how to build a plane – out of the company.

McNerney's big idea was to get rid of "phenomenally talented assholes" and outsource the Dreamliner's design to Boeing's suppliers, who were utterly dependent on the company and could easily be pushed around (McNerney didn't care that most of these companies lacked engineering departments). This resulted in a $80b cost overrun, and a last-minute scramble to save the 787 by shipping a "cleanup crew" from Seattle to South Carolina, in the hopes that those "phenomenally talented assholes" could save McNerney's ass.

Swampy was part of the cleanup crew. He was terrified by what he saw there. Boeing had convinced the FAA to let them company perform its own inspections, replacing independent government inspectors with Boeing employees. The company would mark its own homework, and it swore that it wouldn't cheat.

Boeing cheated. Swampy dutifully reported the legion of safety violations he witnessed and was banished to babysit the MRSA, an assignment his managers viewed as a punishment that would isolate Swampy from the criminality he refused to stop reporting. Instead, Swampy audited the MRSA, and discovered that at least 420 defective aviation components had gone missing from the cage, presumably to be installed in planes that were behind schedule. Swampy then audited the keys to the MRSA and learned that hundreds of keys were "floating around" the Charleston facility. Virtually anyone could liberate a defective part and install it into an airplane without any paper trail.

Swampy's bosses had a plan for dealing with this. They ordered Swampy to "pencil whip" the investigations of 420 missing defective components and close the cases without actually figuring out what happened to them. Swampy refused.

Instead, Swampy took his concerns to a departmental meeting where 12 managers were present and announced that "if we can’t find them, any that we can’t find, we need to report it to the FAA." The only response came from a supervisor, who said, "We’re not going to report anything to the FAA."

The thing is, Swampy wasn't just protecting the lives of the passengers in those defective aircraft – he was also protecting Boeing employees. Under Sec 38 of the US Criminal Code, it's a 15-year felony to make any "materially false writing, entry, certification, document, record, data plate, label, or electronic communication concerning any aircraft or space vehicle part."

(When Swampy told a meeting that he took this seriously because "the paperwork is just as important as the aircraft" the room erupted in laughter.)

Swampy sent his own inspectors to the factory floor, and they discovered "dozens of red-painted defective parts installed on planes."

Swampy blew the whistle. How did the 787 – and the rest of Boeing's defective flying turkeys – escape the hangar and find their way into commercial airlines' fleets? Tkacik blames a 2000 whistleblower law called AIR21 that:

creates such byzantine procedures, locates adjudication power in such an outgunned federal agency, and gives whistleblowers such a narrow chance of success that it effectively immunizes airplane manufacturers, of which there is one in the United States, from suffering any legal repercussions from the testimony of their own workers.

By his own estimation, Swampy was ordered to commit two felonies per week for six years. Tkacik explains that this kind of operation relies on a culture of ignorance – managers must not document their orders, and workers must not be made aware of the law. Whistleblowers like Swampy, who spoke the unspeakable, were sidelined (an assessment by one of Swampy's managers called him "one of the best" and finished that "leadership would give hugs and high fives all around at his departure").

Multiple whistleblowers were singled out for retaliation and forced departure. William Hobek, a quality manager who refused to "pencil whip" the missing, massive 47-48 assembly that had wandered away from the MRSA cage, was given a "weak" performance review and fired despite an HR manager admitting that it was bogus.

Another quality manager, Cynthia Kitchens, filed an ethics complaint against manager Elton Wright who responded to her persistent reporting of defects on the line by shoving her against a wall and shouting that Boeing was "a good ol’ boys’ club and you need to get on board." Kitchens was fired in 2016. She had cancer at the time.

John Woods, yet another quality engineer, was fired after he refused to sign off on a corner-cutting process to repair a fuselage – the FAA later backed up his judgment.

Then there's Sam Salehpour, the 787 quality engineer whose tearful Congressional testimony described more corner-cutting on fuselage repairs:

https://www.youtube.com/watch?v=PP0xhIe1LFE

Salehpour's boss followed the Boeing playbook to the letter: Salehpour was constantly harangued and bullied, and he was isolated from colleagues who might concur with his assessment. When Salehpour announced that he would give Congressional testimony, his car was sabotaged under mysterious circumstances.

It's a playbook. Salehpour's experience isn't unusual at Boeing. Two other engineers, working on the 787 Organization Designation Authorization, held up production by insisting that the company fix the planes' onboard navigation computers. Their boss gave them a terrible performance review, admitting that top management was furious at the delays and had ordered him to punish the engineers. The engineers' union grievance failed, with Boeing concluding that this conduct – which they admitted to – didn't rise to the level of retaliation.

As Tkacik points out, these engineers and managers that Boeing targeted for intimidation and retaliation are the very same staff who are supposed to be performing inspections of behalf of the FAA. In other words, Boeing has spent years attacking its own regulator, with total impunity.

But it's not just the FAA who've failed to take action – it's also the DOJ, who have consistently declined to bring prosecutions in most cases, and who settled the rare case they did bring with "deferred prosecution agreements." This pattern was true under Trump's DOJ and continued under Biden's tenure. Biden's prosecutors have been so lackluster that a federal judge "publicly rebuked the DOJ for failing to take seriously the reputational damage its conduct throughout the Boeing case was inflicting on the agency."

Meanwhile, there's the AIR21 rule, a "whistleblower" rule that actually protects Boeing from whistleblowers. Under AIR21, an aviation whistleblower who is retaliated against by their employer must first try to resolve their problem internally. If that fails, the whistleblower has only one course of action: file an OSHA complaint within 90 days (if HR takes more than 90 days to resolve your internal complaint, you can no have no further recourse). If you manage to raise a complaint with OSHA, it is heard by a secret tribunal that has no subpoena power and routinely takes five years to rule on cases, and rules against whistleblowers 97% of the time.

Boeing whistleblowers who missed the 90-day cutoff have filled the South Carolina courts with last-ditch attempts to hold the company to account. When they lose these cases – as is routine, given Boeing's enormous legal muscle and AIR21's legal handcuffs – they are often ordered to pay Boeing's legal costs.

Tkacik cites Swampy's lawyer, Rob Turkewitz, who says Swampy was the only one of Boeing's whistleblowers who was "savvy, meticulous, and fast-moving enough to bring an AIR 21 case capable of jumping through all the hoops" to file an AIR21 case, which then took seven years. Turkewitz calls Boeing South Carolina "a criminal enterprise."

That's a conclusion that's hard to argue with. Take Boeing's excuse for not producing the documentation of its slapdash reinstallation of the Alaska Air door plug that fell off its plane in flight: the company says it's not criminally liable for failing to provide the paperwork, because it never documented the repair. Not documenting the repair is also a crime.

You might have heard that there's some accountability coming to the Boeing boardroom, with the ouster of CEO David Calhoun. Calhoun's likely successor is Patrick Shanahan, whom Tkacik describes as "the architect of the ethos that governed the 787 program" and whom her source called "a classic schoolyard bully."

If Shanahan's name rings a bell, it might be because he was almost Trump's Secretary of Defense, but that was derailed by the news that he had "emphatically defended" his 17 year old son after the boy nearly beat his mother to death with a baseball bat. Shanahan is presently CEO of Spirit Aerospace, who made the door-plug that fell out of the Alaska Airlines 737 Max.

Boeing is a company where senior managers only fail up and where whistleblowers are terrorized in and out of the workplace. One of Tkacik's sources noticed his car shimmying. The source, an ex-787 worker who'd been fired after raising safety complaints, had tried to bring an AIR21 complaint, but withdrew it out of fear of being bankrupted if he was ordered to pay Boeing's legal costs. When the whistleblower pulled over, he discovered that two of the lug-nuts had been removed from one of his wheels.

The whistleblower texted Tkcacik to say (not for the first time): "If anything happens, I'm not suicidal."

Boeing is a primary aerospace contractor to the US government. It's clear that its management – and investors – consider it too big to jail. It's also clear that they know it's too big to fail – after all, the company did a $43b stock buyback, then got billions in a publicly funded buyback.

Boeing is, effectively, a government agency that is run for the benefit of its investors. It performs its own safety inspections. It investigates its own criminal violations of safety rules. It loots its own coffers and then refills them at public expense.

Meanwhile, the company has filled our skies with at least 420 airplanes with defective, red-painted parts that were locked up in the MRSA cage, then snuck out and fitted to an airplane that you or someone you love could fly on the next time you take your family on vacation or fly somewhere for work.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/05/01/boeing-boeing/#mrsa

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mostlysignssomeportents · 1 year

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Here are just two of the corporate giveaways hidden in the rushed, must-pass, end-of-year budget bill

Yesterday, Congress finally voted through the must-pass, end-of-year budget bill. As has become routine, this bill was stalled right until the final moment, so that Congressjerks could cram the 4,000-page, $1.7 trillion package with special favors for their donors, at the expense of the rest of the country.

This year’s budget package included a couple of especially egregious doozies, which were reported out for The American Prospect by Lee Harris (who covered a grotesque retirement giveaway for the ultra-rich) and Doraj Facundo (who covered a safety giveaway to Boeing and its lethal fleet of 737 Max airplanes).

Let’s start with the retirement scam. The budget bill includes Rep Richie Neal’s [DINO-MA] SECURE Act 2.0, which gives savers with retirement funds until age 75 to cash out their retirement savings — netting an extra three years of tax-free growth for the lucky, tiny minority with substantial retirement savings. This follows on Neal’s SECURE Act 1.0 of 2019, when the age was raised from 70.5 to 72.

The tax-exempt retirement savings account is a Carter-era bargain that replaced real pensions — ones that guaranteed that you wouldn’t starve or freeze to death when you retired — with accounts that let people gamble on the stock market, to be the suckers at Wall Street’s poker table:

https://pluralistic.net/2020/07/25/derechos-humanos/#are-there-no-poorhouses

The market-based gambler’s pension is a catastrophic failure. Half of Americans have no retirement savings. Of the half that have any savings, the vast majority have almost nothing saved:

https://www.federalreserve.gov/econres/scf/dataviz/scf/chart/#series:Retirement_Accounts;demographic:all;population:all;units:have

All in all, America has a $7 trillion retirement savings shortfall:

https://crr.bc.edu/wp-content/uploads/2019/10/IB_19-16.pdf

But for a tiny minority of the ultra-rich, tax-free savings accounts like ROTH IRAs are a means of avoiding even the paltry capital gains tax that you have to pay if you own things for a living, rather than doing things for a living. Propublica’s IRS Files revealed how ghouls like Peter Thiel avoided tax on billions in “passive income” by abusing tax-free savings accounts that were supposed to benefit the “middle class”:

https://pluralistic.net/2021/06/26/wax-rothful/#thiels-gambit

Meanwhile, Social Security is crumbling, thanks to a sustained attack on it by the business lobby and its friends in both parties. Progressive Dems had sought to amend SECURE Act 2.0 by inserting some clauses to shore up Social Security, and none of these were included in the final bill.

One of the fixes that died was the Savings Penalty Elimination Act, introduced by Senators Sherrod Brown [D-OH] and Rob Portman [R-OH]. This act would have tweaked the means-testing for Supplemental Security Income, which supports 8m low-income disabled adults and kids. Right now, you can’t collect SSI if you have $2k in the bank, a limit that hasn’t been adjusted for inflation since the 1980s (adjusted for inflation, $2k in 1980 is $7226.00 in 2022).

The $2k savings cap means that you have to be substantially below the poverty level to receive $585/month in SSI assistance — this being the only source of income for the majority of SSI recipients. Means-testing is a self-immolating fetish for corporate Dems and in retrospect, this betrayal seems inevitable:

https://pluralistic.net/2022/05/03/utopia-of-rules/#in-triplicate

(Notice how no one proposes means-testing billionaires when they get PPP loans or hundreds of millions in IRS “refunds” — like Trump, who paid substantially less tax than you did:)

https://www.cnbc.com/2022/12/21/trump-income-tax-returns-detailed-in-new-report-.html

And it was a betrayal: progressive Dems bargained with Neal and co not to publicly condemn SECURE Act 2.0 if they could get some concessions for the 8 million poorest disabled people in America. In the end, Neal rug-pulled them. Of course he did! This is Richie Fucking Neal, the best friend the Trump tax giveaway ever had:

https://pluralistic.net/2020/07/13/youre-still-the-product/#richie-neal

As with everything Neal touches, this screws poor people in multiple ways. First, it leaves the SSI cap intact. But it also creates a giant unfunded liability in the federal budget. Technically, there’s no reason this should lead to cuts. The US Treasury can’t run out of dollars, and giveaways to the rich are only mildly inflationary, since rich people put their money in the bank and mostly spend it on buying politicians, not goods.

But because of the delusion that currency producers like the US Treasury have the same constraints as currency users like you and me, Congress will need to come up with “Pay Fors” in future budgets to “make up for” the money they’re giving to rich people with SECURE Act 2.0. Dollars to toenail clippings, they’ll do that by hacking away at the tattered remains of the US social safety net.

Fear not, you don’t need to be a desperately poor disabled person or child to get fucked over by late additions to a 4,000 page must-pass bill! If you can afford to get on an airplane, Congress has something for you, too!

Remember when Boeing (the monopoly US airplane manufacturer that squandered $43b on stock buybacks and had to borrow $14b from the US public to survive the pandemic) told the FAA that it could self-certify its 737 Max airplanes, and then killed hundreds and hundreds of people with its defective planes?

https://pluralistic.net/2020/03/12/boeing-crashes/#boeing

The 737 Max was unsafe for many reasons, but one glaring factor was the fact that Boeing sold some of its core safety as “extras” — like they were downloadable content for your Fortnite character — leading to multiple crashes in which all lives were lost:

https://apnews.com/article/ethiopia-indonesia-accidents-ap-top-news-international-news-140576a8e9d4449eae646c8c479fdc3a

Boeing was forced to take the 737 Max out of service, but it eventually brought the plane back, “fixing” the problems by renaming the “737 Max” to the “737 8”:

https://pluralistic.net/2020/08/20/dubious-quantitative-residue/#737-8

Supposedly, Boeing has been diligently working on fixing the problems with its defective jets that can’t be addressed by a rebranding campaign. This wasn’t voluntary: the 2020 Aircraft Certification, Safety, and Accountability Act required Boeing — and every other manufacturer whose aircraft were certified by the FAA — to meet new minimum safety standards by December 27, 2022.

Every manufacturer met that deadline, except Boeing, and someone amended the budget bill to give the company three more years to meet these security standards. Critically, the new security measures, when they come, will be certified by an FAA that Republicans will control, thanks to the House changing hands.

https://prospect.org/infrastructure/transportation/government-spending-bill-waives-aircraft-safety-deadline/

Boeing is slated to ship 1,000 new 737 Maxes, which will fetch $50b for the company. Many of these planes will fly directly over my house, which is on the approach path for Burbank airport. Southwest Air flies dozens of 737 Maxes right over my roof every single day.

As Facundo points out, the FAA can ill afford any more hits to its credibility. It was once the case that if the FAA certified an aircraft, every other country in the world would waive any further certification, so trusting were they of the FAA’s judgment. That is no longer the case: today, the European Aviation Safety Agency does its own aircraft testing, holding jets that enter EU airspace to a higher standard than the FAA does for US planes.

It’s just another reminder that the US doesn’t have “corporate criminals” because the US doesn’t have any meaningful enforcement for corporate crimes. In America, we love our companies like we love our billionaires: too big to fail and too big to jail:

https://pluralistic.net/2021/10/12/no-criminals-no-crimes/#get-out-of-jail-free-card

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[Image ID: A living room scene, featuring a sofa in the background and a sofa in the foreground. A man's hand reaches into the frame to lift up the corner of the sofa. A broom enters the frame to sweep a pile of dirt under the rug. Mixed in with the dirt are a crashed WWI biplane with Southwest Airlines livery, and an old lady in a rocking chair.]

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