Boeing, Southwest Airlines tangle with DEI

A federal judge in Texas rejected Boeing's plea deal regarding the 737 Max crashes, citing concerns over a diversity and inclusion (DEI) provision, reports Skift. Judge Reed O’Connor argued that the provision could compromise the court’s oversight of an independent compliance monitor tasked with ensuring Boeing's adherence to safety standards. Boeing and the Department of Justice (DOJ) now have 30 days to revise the agreement.

The deal, which included Boeing's guilty plea to misleading the FAA, required a monitor whose selection aligned with DEI commitments. O’Connor criticized the government's "shifting explanations" of how DEI considerations applied, asserting that competency alone should guide the choice. The decision adds uncertainty as Boeing faces renewed scrutiny for safety issues.

Meanwhile, Southwest Airlines has responded to complaints from the Trump-aligned group America First Legal alleging the use of illegal hiring quotas, stating that it does not discriminate in hiring or promotion, as reported by View from the Wing. While the group accused Southwest and other airlines of jeopardizing their government contracts by favoring diversity via hiring quotes, there is no evidence such quotes were enforced.

The airlines, including United and American, employ diversity benchmarks legally, aiming to identify overlooked talent and evaluate the inclusiveness of their hiring practices. These approaches can attract diverse candidates while reducing hiring costs. However, the controversy highlights broader cultural tensions, with some conservative employees criticizing Southwest’s progressive stance and diversity goals.