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COLUMNISTS
TODAY'S STORIES
20.11.2008
One If By Jalopy, Three If By Corporate Jet

David Kusnet was chief speechwriter for former President Bill Clinton from 1992-1994. He is the author of Love the Work, Hate the Job: Why America's Best Workers Are Unhappier than Ever.    

When the CEO's of the Big Three U.S. auto companies flew luxurious corporate jets to Washington D.C. to plead for federal aid, it wasn't just the public relations blunder of the decade. It was yet another reminder of the stark inequalities that make working Americans feel as if they're being played for suckers when they work harder and smarter than ever before, but get wage freezes, benefit cuts, and layoff notices for their troubles.

Why can't the nation's leading corporations, especially those in serious financial trouble, be just a little more egalitarian? If the gaps in pay and perks between the corner offices and the office cubicles and shop floors were just a little narrower, wouldn't it improve workers' morale--and the companies' esteem among consumers and policymakers?

As it happens, at least one member of Motown's Big Three--Ford CEO Alan Mulally--should have known better. Before coming to Ford, Mulally headed-up the commercial airline division at Boeing, where he was generally well-regarded by union leaders and rank-and-file workers. Boeing has a tradition of being relatively egalitarian in its employment practices. It is the only leading U.S. company where the professional, technical, and production workers are all represented by unions

Until recently, many of Boeing's top executives, including Mulally, came from the ranks of the engineers' union. In keeping with Seattle's Scandinavian social democratic traditions, Boeing's top brass lived modestly, sometimes in the same communities as the engineers, technicians, and machinists, and treated employees as colleagues, not underlings. When Boeing's blue-collar or white-collar unions struck, Boeing executives often visited the picket lines, asking workers what it would take for them to go back.

Even though Boeing makes jets, flying around in corporate ones would have been as alien to them as wearing Gucci loafers. In a story that I tell in my book, Boeing's Chairman and CEO, T.A. Wilson, took a commercial flight to Washington D.C in 1969 to testify before a congressional committee. Instead of a limousine, Wilson was met at the airport by Geoff Stamper, the son of Boeing's second-in-command, Mal Stamper. Geoff Stamper was a student at American University, and he drove Wilson into town in a rusted jalopy.

Years later, Stamper became Boeing's chief negotiator in contract talks with the engineers and technicians, and he told me that their seven-week strike in 2000 was good for the company because, by airing their complaints about micromanagement and penny-pinching, the employees had a healthy catharsis, and top executives learned what was on workers' minds.

Mulally would do well to call or email Stamper and remind himself how a little humility can endear a company to its employees and the general public. The Big Three should also reread their biographies of the late UAW President Walter Reuther, whose Spartan lifestyle set him apart not only from the auto company executives, but also many leaders of other unions. This week, the current UAW President, Ron Gettelfinger, would have made Reuther proud--he took a US Air Flight to Washington.     

--David Kusnet

Posted: Thursday, November 20, 2008 6:58 PM with 7 comment(s)

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iambiguous said:

This reaction to the private jets is precisely the sort of red herring the mainstream media love to pump out. It allows them to show us just how outraged they are by these CEOs living large while the policies they pursued crumple the rest of us.

Same with rhetoric in Congress.

It is all basically designed to draw our attiention away from the cozy, pecuniary relationship corporations, government officials and lobbyists have been constructing, deconstructing and reconstructing over and again for decades on end. Only this time the guys and the gals in the boiler rooms went too far.

It's not just that Chuck Schumer and Barney Franks [and their Republican equivalents] didn't probe too deeply into the warnings that had been posted by economists and others about this labyrinthian house of cards; it also reflects the dismantling of regulation both Clinton and Bush countenanced while the folks who pursued derivatives, hedge funds and CDOs concocted financial contraptions so abstruse and cryptic that maybe a dozen people really understand what the hell they are and how they work.That all but obliterated the transparency needed to allow the invisible hand of the market to facilitate reasonable bets with a reasonable understanding of the risks involved.

If I were a reporter at an Obama news conference the first thing I would do is note all of the above; and then I would ask him what he and his economic team plan to do about bringing these incestuous trysts to an end.

George Walton

November 20, 2008 9:08 PM

bkaplovitz said:

Hear's another take on the GM/Ford/Chrysler CEOs' private jet gaffe:

-----------------------------------------------------------------------

From Commentary Magazine's "Contentions" Weblog:

November 20, 2008

[Reader] Commentary of the Day

Reader Vail Beach:

   Three successful corporate executives, advised by perhaps 40 or 50 of the sharpest PR minds in the business and another 100 lobbyists whose entire expertise is in anticipating members of congress’ reactions - and none of them saw anything wrong with the use of a private jet?

   I don’t believe it.

   I think these executives are only going through the motions. They know as well as anyone else what a terrible waste of money and time the bailout would be. Rick Wagoner couldn’t even promise congress yesterday that the infusion of funds via a 10-year loan would allow GM to survive through March. Not exactly putting your best foot forward to the lending officer. “Hi, can you lend me $25 billion? And, in five months, do you mind getting in line behind all my other creditors to get it paid back by a bankruptcy judge?”

   No. The CEOs have to play this out for the sake of homestate politicians and media, and the UAW, but they don’t really want the bailout. They want bankruptcy. It is, literally, their only hope. That’s the hidden message of the private plane fiasco

--P0sted By Abe Greenwald - 11.20.2008 - 6:02 PM

www.commentarymagazine.com/.../43881

November 20, 2008 10:21 PM

fwslusser said:

The Boeing example is particularly poignant.  Mulally once at Ford wasted little time in abandoning one of the lessons Boeing learned as evidenced in the 787 project, that fuel efficiency and ultimately alternative energy sources are key to the future.

At the same time, Boeing's culture has perhaps been permanently poisoned by the defense industry sows from McDonnell Douglass.  They moved the headquarters to Chicago.  They oriented the company toward the defense trough and infected them with the virus of corruption that rendered that very strategy impotent - Airbus got the contract for next generation of fuel tankers due to Boeing's missteps.

Boeing's outsourcing has similarly come to haunt them on the 787 project - it would have been better to keep their contractors close at hand, at least in the short run, as lack of oversight led to engineering and manufacturing mistakes that may have been avoided through closer oversight.

Here's hoping that Detroit learns from Boeing's, and starts building cars that customers will want in the future, and builds them with American workers, instead of counting on US government favors to protect them.

November 21, 2008 1:11 AM

ChanRobt said:

Mulally has been doing a good job at Ford.

I'm sorry he got moshed in with the other two, especially the cosmically clueless Wagoner.

November 21, 2008 1:41 AM

chrismealy said:

See that airstrip? That's the private island Boeing executives used to own. Now it's owned by Paul Allen.

http://tinyurl.com/5qnq47

November 21, 2008 12:04 PM

sportdoc62 said:

The Jets were aimed squarely at the UAW.  The Big Three produce poorly designed, unreliable vehicles and have for a long time.  For me, the prospect of having a product I would never buy become unavailable (or even less desirable by being made by a company in banktruptcy) is a distinction without difference.  Apart from a bit of sentimenality, what in the whole enterprise is worth preserving?  I do love my Acura, assembled in Marysviille, Ohio, which in four and a half years has required nothing more than oil changes and new tires.  NASCAR is in big trouble, bubba!

November 21, 2008 2:55 PM

ChanRobt said:

sportdoc62 writes, "... For me, the prospect of having a product I would never buy become unavailable (or even less desirable by being made by a company in banktruptcy) is a distinction without difference."

While I share your immense disdain, sportdoc, for the way Detroit has done business since the mid '70s, I worry a lot about a nation that produces only lawyers and politicians, but can't build much anymore.

I think with radical restructuring and smart management, and maybe by moving management to California, the Big Three, or maybe Two, could be very competitive.

I've owned both a BMW 540i for ten years and a Ford Explorer for 12.  Each in their own way have been terrific cars.

And Ford has demonstrated for years that they knew something about ergonomics and style.  GM has only recently started to show that they can and could.

But there is no reason those factories and American workers couldn't be re-purposed to building great cars.  We've got the engineering talent and the worker talent.  

We've just been suffering from a terrible, inbred Detroit management culture-- most especially at GM-- for thjree plus decades.

November 21, 2008 7:18 PM