TODAY, as Congress works to address #COVIDー19 and @boeing begs for a $60 billion bailout, we’re releasing a new paper by @econliberties Fellow Maureen Tkacik:
“Rescue Mission: Bailing Out Boeing and Rebuilding it to Thrive”
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“Rescue Mission: Bailing Out Boeing and Rebuilding it to Thrive”
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Decades of mismanagement saw Boeing shower shareholders with cash at the expense of employees, suppliers, and safety.
Now that Boeing needs $, the government has to make sure that any Boeing bailout comes w/swift and dramatic changes to the perverse ways Boeing does business. 2/
Now that Boeing needs $, the government has to make sure that any Boeing bailout comes w/swift and dramatic changes to the perverse ways Boeing does business. 2/
“Rescue Mission” lays out 7 conditions for a Boeing bailout, aimed at returning Boeing to a functional, productive, and innovative company:
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1. Replace Boeing’s Board of Directors -
Boeing’s board failed to prevent the second crash of its 737 Max plane and expanded its buyback program despite knowing that Boeing’s faulty software caused those crashes.
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Boeing’s board failed to prevent the second crash of its 737 Max plane and expanded its buyback program despite knowing that Boeing’s faulty software caused those crashes.
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2. Fire Boeing CEO David Calhoun -
Calhoun has refused responsibility for his company’s problems. Getting rid of Calhoun would help unsettle the shareholder-obsessed decision-making mindset plaguing Boeing.
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Calhoun has refused responsibility for his company’s problems. Getting rid of Calhoun would help unsettle the shareholder-obsessed decision-making mindset plaguing Boeing.
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3. Prohibit layoffs, buybacks, dividends, bonuses, supplier-squeezing, and stock-based compensation -
Any Boeing bailout has to prioritize safety, workers, and supply chains, not shareholders and executives.
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Any Boeing bailout has to prioritize safety, workers, and supply chains, not shareholders and executives.
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4. Return Boeing management to Seattle and restore the company’s “working together” culture.
5. Spend 10% of revenue on R&D and hire back experienced engineers, with a particular focus on low-carbon aviation.
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5. Spend 10% of revenue on R&D and hire back experienced engineers, with a particular focus on low-carbon aviation.
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6. Establish a public systemic risk council to regulate the aviation industry -
A council made up of labor and industry leaders could help evaluate companies’ business models and assess their consequences for safety and reliability.
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A council made up of labor and industry leaders could help evaluate companies’ business models and assess their consequences for safety and reliability.
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7. Structure a government bailout as a conservatorship with a 10-year horizon -
Public officials have to make sure that Boeing does not fall prey to private financiers who share responsibility for putting Boeing in such dire straits to begin with.
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Public officials have to make sure that Boeing does not fall prey to private financiers who share responsibility for putting Boeing in such dire straits to begin with.
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Taxpayers can’t save Boeing if they won’t save themselves.
How we address corporate bailouts matters.
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How we address corporate bailouts matters.
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