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Boeing Accepts A Plea Deal To Avoid A Criminal Trial Over 737 Max Crashes, Justice Department Says

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6 months ago

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Boeing | AP News Image

Boeing will plead guilty to a criminal fraud charge resulting from two 737 Max plane disasters that killed 346 people, the Justice Department announced late Sunday, after the government found the firm broke an agreement that had shielded it from prosecution for more than three years.

Last week, federal prosecutors gave Boeing the option of pleading guilty and paying a fine as part of its penalty or going to trial on the felony criminal allegation of conspiracy to defraud the United States.

Prosecutors accused the American aerospace firm of misleading regulators who authorized the jet and its pilot training standards.

Boeing | AP News Image

Boeing Accepts A Plea Deal To Avoid A Criminal Trial Over 737 Max Crashes, Justice Department Says

The plea agreement, which must still be approved by a federal judge before it takes effect, requires Boeing to pay an additional $243.6 million punishment. That was the same amount it paid under the 2021 settlement, which the Justice Department claimed the business violated. An impartial monitor would be appointed to oversee Boeing’s safety and quality practices for three years. The agreement also compels Boeing to invest at least $455 million in its compliance and safety initiatives.

The plea deal mainly addresses Boeing’s violation prior to the crashes in Indonesia and Ethiopia, which killed all 346 passengers and crew members onboard two new Max jets. A Justice Department official stated that it does not provide Boeing with immunity for prior events, such as a panel that flew off a Max aircraft during an Alaska Airlines flight over Oregon in January.

The agreement also does not cover any current or past Boeing executives, only the company. Boeing stated in a statement that it had struck an agreement with the Justice Department but declined to disclose further.

According to a filing made Sunday night, the Justice Department expects to present the written plea deal to a U.S. District Court in Texas by July 19. Lawyers for some of the relatives of those killed in the two crashes have stated that they will seek the judge to reject the arrangement.

“This sweetheart deal ignores the fact that 346 people died as a result of Boeing’s conspiracy.” “The deadly consequences of Boeing’s crime are being hidden through crafty lawyering between Boeing and the DOJ,” said Paul Cassell, a lawyer for some of the families.

Federal prosecutors accused Boeing of conspiring to deceive the government by deceiving authorities about a flight-control system involved in the crashes, which occurred less than five months apart.

As part of the January 2021 deal, the Justice Department agreed not to prosecute Boeing for the charge if the firm met specific conditions for three years. Last month, prosecutors accused Boeing of violating the conditions of that deal.

U.S. District Judge Reed O’Connor, who has handled the case since its inception, has denounced what he calls “Boeing’s egregious criminal conduct.” O’Connor could accept the plea and the punishment provided by prosecutors, or he could reject the accord, which would likely result in additional negotiations between the Justice Department and Boeing.

The case dates back to the crashes in Indonesia and Ethiopia. The Lion Air pilots in the first crash were unaware of flight-control software that might automatically lower the plane’s nose. Ethiopian Airlines pilots were aware of the situation, but were unable to manage the plane when the software activated due to information from a defective sensor.

In 2021, the Justice Department sued Boeing with tricking FAA regulators about the software, which did not present on older 737s, and how much training pilots would require to fly the plane safely. The department agreed not to prosecute Boeing at the time in exchange for the corporation paying a $2.5 billion settlement, including the $243.6 million fine, and taking three years to comply with anti-fraud regulations.

Boeing, which accused two low-level employees for misleading authorities, attempted to put the crashes behind it. when grounding Max aircraft for 20 months, regulators allowed them to fly again when the manufacturer decreased the strength of their flying software. Max jets completed thousands of safe flights, and airline orders increased, reaching approximately 750 in 2021, 700 more in 2022, and over 1,000 in 2023.

This changed in January, when an unused emergency escape panel burst off an Alaska Airlines Max during a flight over Oregon.

Pilots safely landed the 737 Max, and no one was seriously wounded, but the incident prompted more scrutiny of the corporation. The Justice Department launched a fresh investigation, the FBI informed passengers on the Alaska flight that they could be victims of a crime, and the FAA said that it was increasing oversight of Boeing.

According to some legal experts, a criminal conviction might undermine Boeing’s eligibility for federal contracts. The plea announced on Sunday does not address that issue, leaving it up to each federal agency to decide whether to exclude Boeing.

The Air Force claimed a “compelling national interest” in allowing Boeing to compete for contracts after the corporation paid a $615 million fine in 2006 to settle criminal and civil allegations, including using stolen information from a competitor to win a space-launch contract.

The corporation, headquartered in Arlington, Virginia, has 170,000 workers and dozens of airline customers throughout the world. Southwest, United, American, Alaska, Ryanair, and flydubai are among the most loyal 737 Max customers.

However, 37% of its revenue last year came from US federal contracts. The majority of it was defense work, including military sales that Washington organized for other countries.

Boeing also manufactures a capsule for NASA. Two astronauts will stay aboard the International Space Station for longer than expected while Boeing and NASA engineers work to resolve issues with the capsule’s propulsion system.

Even some Boeing detractors are concerned about harming a critical defense contractor.

“We want Boeing to succeed,” said Richard Blumenthal, a Connecticut Democrat, at a Senate hearing last month on the company’s allegedly dysfunctional safety culture. “Boeing needs to succeed for the sake of the jobs it provides, for the sake of local economies it supports, for the sake of the American traveling public, for the sake of our military.”

Boeing | AP News Image

Boeing Accepts A Plea Deal To Avoid A Criminal Trial Over 737 Max Crashes, Justice Department Says

Relatives of the Max crash victims have called for a criminal prosecution to uncover what Boeing employees knew about tricking the FAA. They also want the Justice Department to prosecute key Boeing personnel, rather than merely the business.

“Boeing has paid fines numerous times, and it doesn’t appear to make any difference,” said Ike Riffel of Redding, California, whose sons Melvin and Bennett died in the Ethiopian Airlines tragedy. “When people start going to prison, that’s when you are going to see a change.”

At a recent Senate session, Boeing CEO David Calhoun defended the company’s safety record before turning and apologizing to relatives of Max accident victims seated in the rows behind him “for the grief that we have caused.”

Hours before the hearing, the Senate investigations subcommittee issued a 204-page report containing new charges from a whistleblower who expressed concern that defective parts could be used in 737s. The whistleblower is the latest in a long line of current and former Boeing employees who have voiced safety concerns about the firm and claimed retaliation as a result.

SOURCE – AP

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Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Sonic the Hedgehog Dominates Christmas Wish Lists

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5 hours ago

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2024-12-21

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Sonic the Hedgehog Merchandise are hot Christmas Items

Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.

Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.

Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.

Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.

Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.

Retailers who tap into this trend are sure to see strong holiday sales.

Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.

Sonic the Hedgehog 4

Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.

The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.

The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.

On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.

The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.

They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.

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Amazon Strike Called By Teamsters Union 10,000 Walkout

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1 day ago

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2024-12-20

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Teamsters members were demonstrating at "hundreds" of other Amazon locations.

An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.

The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.

According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.

The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.

It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.

Amazon Strike at 10 Locations

Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.

The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.

The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.

Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.

Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.

Stalled Contract Negotiations

Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.

However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.

Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.

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Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.

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2 days ago

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2024-12-19

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(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.

The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.

The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”

The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.

Amazon has refused to acknowledge the union for many years.

The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.

Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.

Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.

“Amazon workers are exercising their power,” Randy Korgan stated to NPR.

“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.

Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.

The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.

Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.

The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.

Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.

Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.

Teamsters organize Amazon delivery couriers and other employees.

In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.

The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.

In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.

“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”

The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.

SOURCE: NPR

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