Title: Boeing: Corporate Rap Sheet | Corporate Research Project
Headings: Boeing: Corporate Rap Sheet
Boeing: Corporate Rap Sheet
Boeing

Content: Boeing also has a history of contentious relations with its main U.S. unions and was accused of retaliating against them by moving a new assembly line for its Dreamliner aircraft to the union-unfriendly state of South Carolina, which rewarded the company with a subsidy package estimated to be worth more than $900 million. In 2013 the company negotiated a much larger package from Washington State (along with union contract concessions) in exchange for keeping production of its next-generation airliner in the Seattle area. In 2019 the company took a big hit to its reputation and its finances when all of its new 737 Max jets were grounded throughout the world in the wake of two fatal crashes linked to a malfunctioning anti-stall system on the aircraft. Government Contracting
In 1989 Boeing pleaded guilty and paid a penalty of more than $5 million in connection with charges that it illegally obtained classified Pentagon planning documents. In April 1994 Boeing paid $75 million to settle charges that it systematically overcharged and mischarged the federal government on military contracts over the course of more than a decade. In November 1997 Boeing subsidiary McDonnell Douglas agreed to pay $2 million to settle allegations that it overcharged the Pentagon in a contract to repair aircraft manufacturing equipment. In August 2000 Boeing agreed to pay up to $54 million to resolve two whistleblower lawsuits charging that the company placed defective gears in CH-47D Chinook helicopters and then sold the aircraft to the U.S. Army. In November 2000 Boeing and United Space Alliance agreed to pay a total of $825,000 and give up their rights to $1.2 million in unpaid invoices to settle allegations of overbilling NASA for work overseen between 1986 and 1992 by Rockwell Space Operations (later purchased by Boeing). In July 2003 the U.S. Air Force stripped Boeing of $1 billion in potential revenue as a penalty for obtained documents stolen from its rival Lockheed Martin during a contract competition for military satellites. In November 2003 Boeing dismissed its chief financial officer when it came to light that he had offered a job to an Air Force procurement official while she was in negotiations with the company on a $20 billion contract to supply aerial refueling tankers.