Boeing’s diversity policy slammed by US judge AFP
A U.S judge on Thursday rejected a criminal settlement with Boeing over the 737 MAX crashes and harshly criticized the aviation giant and the Justice Department for diversity policies that left him “doubtful” about a fair outcome.
In the ruling, U.S. District Judge Reed O’Connor blocked Boeing from entering a guilty plea under a deferred prosecution agreement in the case involving two fatal crashes in 2018 and 2019 that killed a total of 346 people.
Under the agreement, the Justice Department will select a monitor to ensure Boeing complies with the deal.
But O’Connor wrote that the Justice Department’s Diversity, Equity and Inclusion (DEI) policy made him “skeptical” of assurances that the department would select ombudsmen based solely on skills.
“The court is not convinced .. that the government would not select the monitor without regard to race,” O’Connor said. He gave both sides 30 days to inform the court of the next steps in the case.
Under the agreement, the Justice Department will select six candidates to serve as monitors, and Boeing can choose to fire one of them.
But O’Connor wrote in his 12-page ruling that he was concerned Boeing was deciding which companies to strike “in a discriminatory manner and with racial considerations.”
He cited Boeing’s policies to work toward goals such as adequate representation of black people in company leadership.
His ruling criticized Boeing and the Justice Department for DEI policies that are “contrary to the public interest.”
“In a case of this magnitude, the public must have confidence that the selection of the Ombudsman is based solely on merit in order to ensure that justice is served,” O’Connor said.
“DEI efforts by all parties will only undermine confidence in the government and Boeing’s anti-fraud efforts.”
Neither Boeing nor the Justice Department immediately commented on the ruling.
The ruling comes as DEI policies face increasing attacks in corporate and government America, with supporters of such initiatives aimed at correcting bias in American workplaces even more on the defensive following Donald Trump’s victory in the U.S presidential election.
Paul Cassell, a University of Utah law professor who represents families of MAX victims, welcomed O’Connor’s ruling, calling the agreement a “sweet deal” between Boeing and the Justice Department.
“This order should lead to a significant renegotiation of the plea agreement to reflect the 346 deaths caused by Boeing’s crimes and to put appropriate controls on Boeing to ensure it does not commit such crimes in the future,” Cassell said in a statement.
The Justice Department reached a deferred prosecution agreement with Boeing in 2021 after the two crashes, but Justice Department officials said in May that Boeing had violated the agreement, increasing the likelihood of a renewed prosecution.
This summer, Boeing reached a new agreement with the Justice Department in which it agreed to pay an additional $243.6 million in fines. Boeing has faced renewed scrutiny since an Alaska Airlines 737 MAX suffered an engine failure mid-flight in January.
O’Connor cited a second basis for rejecting the agreement, arguing that the Justice Department’s procedures for limiting the court’s oversight of the monitor improperly “marginalize” the court in light of the Justice Department’s record on the case.
“It is fair to say that the government’s efforts to ensure compliance have failed,” he wrote. “The public interest now requires that the courts intervene.”
Boeing shares fell 0.7% in afternoon trading.