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Archive for the ‘Business’ Category

KGB AIRWAYS: PART SIX (OF EIGHT)

In Bureaucracy, Business, Law, Self-Help on December 12, 2013 at 12:09 am

For your complaint to be addressed, it must first be put in writing–whether in a letter and/or an email.  Most likely, several letters and/or emails.

Even in our video-oriented society, the written word still carries far greater weight than the spoken one.  A document can be used as evidence in a civil lawsuit.

If you cringe at writing it yourself, you can ask someone else to write it for you.  But if s/he lacks excellent judgment and literary skills, you’ll be no better-off.

At best, the letter will prove ineffective and be ignored.  At worst, it could open you to charges of libel and/or extortion.

And even if the person can write an effective letter on your behalf, chances are you’ll have to pay for that service.

If you decide to write the letter yourself, you’ll find highly effective advice in Shocked, Appalled, and Dismayed: How to Write Letters of Complaint That Get Results, by Ellen Phillips.

Product Details

Click here: Amazon.com: Shocked, Appalled, and Dismayed! How to Write Letters of Complaint That Get Results (9780375701207): E

Among the subjects she covers–in detail–are:

  • Who to write to, what to say, what to ask for.
  • The names and addresses of over 600 major companies.
  • How to draft personal petitions covering everything from tenant-landlord disputes to workman’s compensation.
  • What steps to take to avoid litigation.

My own tips for writing a successful complaint letter are:

  • Remove any vulgar or profane words. 
  • Don’t make sweeping accusations: “Your agency is a waste.” 
  • Stick to facts you know can be proved: The who, what, when, where, how and why of reporting.
  • Don’t attribute motives to people you’ve had problems with.  You don’t know why someone did what he did.
  • Cite the names and titles of any airline employees who (1) witnessed the reason for your complaint, or (2) were witnesses to it.
  • Show how the failure of the official to address your problem reflects badly on the company: “This is not the level of service your ads would lead potential customers to expect.”
  • If there is a specific action the airline can take to redress your complaint, be sure to mention it.  (You can be so angry when making a complaint that you forget to say what you want the company to do to resolve it.)
  • Be reasonable and realistic in what you ask for. 
  • If you want reimbursement for expenses you had to make (such as hotel lodgings) owing to the airline’s fault, then provide copies of receipts.
  • Emphasize your desire to resolve the complaint amicably and privately within the company.
  • If necessary, note any regulatory agencies that can make life rough for the company if your complaint isn’t resolved. 
  • Cite the applicable law(s) under which it can be sued: “According to the Passenger Bill of Rights….”
  • Make certain the airline knows you expect a reply within a certain length of time: “I would appreciate your response within the next 10 business days.”

Of course, your overture(s) may be ignored.  Or you might feel the airline has not made a good-faith effort to compensate you.

In either case, you have two more courses of action to pursue.

  1. Threatening the airlines with bad publicity; and
  2. Threatening the airlines with a private lawsuit.

Thanks to the Internet, it’s far easier to spread the word about companies that mistreat their customers.

“Fly the Friendly Skies” is no longer n advertising slogan (even at United Airlines, which popularized it).  But airlines spend millions of dollars a year on selling just that image of themselves.

So anything that threatens to throw mud on that image is guaranteed to set off alarm-bells at corporate headquarters.  Especially if that mud is well-deserved.

An easy way to avenge airline mistreatment is to make full use of a wide array of consumer-opinion websites.

It’s important to check out each website carefully to increase your chances of having your complaint resolved.

  • Most websites simply offer a forum to vent your spleen.
  • Others promise to take various forms of action on your behalf–such as directing your complaint to the airline or a government agency.
  • Others offer to refer your complaint to an attorney.
  • Many of these are free.
  • Others charge a nominal fee (such as $5) for posting your complaint.
  • Some complaint websites are run by the Federal Government–such as those of the Transportation Safety Administration (TSA), the Federal Aviation Association (FAA) and the Federal Trade Commission (FTC).
  • Some are run by individual states–such as the Office of the California Attorney General.
  • The major airlines provide “file a complaint” pages on their websites.

WARNING: What you say online can hurt youAccuse someone of criminal or shameful behavior, and you can be sued for libel. Threaten someone with exposure or financial ruin and you can be privately sued and/or criminally prosecuted for extortion.

And once you click on the “Send” button, there’s no recalling your email.

KGB AIRWAYS: PART FIVE (OF EIGHT)

In Bureaucracy, Business, Law, Self-Help on December 11, 2013 at 12:40 am

Have a complaint against an airline–but don’t want to waste your time with low-level Customer Service reps?

Good.  You’ve just learned what is probably the single most important lesson in bureaucracy-busting: If you want action, seek out those who are empowered to make it happen.

So take your complaint to someone who has the authority to resolve it. This means, preferably, the CEO of the airline, or at least one of his executive colleagues.

But who are these people? And how do you track them down?

You start by realizing that every major airline has a website. And that website can usually be counted on to list the top honchos of the company.

Even if it doesn’t, you can usually obtain this information on the Internet. Go to “google” and type: “[Name of airline] board of directors.”

This should arm you with

  • the name of the CEO;
  • the company’s mailing address;
  • its phone number for reaching its top executives; and
  • its website and/or email address.

Below are listed

  • the names of the CEOs of the major United States airlines
  • their mailing addresses
  • their corporate phone numbers and (where given)
  • their email addresses.

But the corporate world is filled with men (and a few women) who are highly skilled at moving up–by moving others out.  So keep in mind that the names provided below will not be permanent.

Check out the appropriate websites to obtain the latest information before writing that letter and/or making that call.

Send out a letter addressed “To Whom It May Concern” and you’ll instantly be branded as a lightweight.   This only shows that you were too lazy/stupid to find out who holds power in the organization.

Whereas a well-written letter addressed to the key decision maker will instantly warn top executives: “Take this person seriously.”

Now, the airlines:

DELTA AIRLINES

Richard H. Anderson – Chief Executive Officer of Delta since September 1, 2007.

Edward H. Bastian – President of Delta since September 1, 2007.

Email:  Email us
Phone: (404) 715-2600
Mail:
Delta Air Lines, Inc.
P.O. Box 20706
Atlanta, Georgia 30320-6001

Click here: Delta Airlines Board of Directors

AMERICAN AIRLINES

Thomas W. Horton – Chairman, President and Chief Executive Officer, AMR Corporation / American Airlines, Inc., Fort Worth, Texas.

John W. Bachmann – Senior Partner, Edward Jones, St. Louis, Missouri.

Mail:
P.O. Box 619616
DFW Airport, TX   75261-9616

Phone: (817) 963-1234

Click here: American Airlines Board of Directors

UNITED AIRLINES

Glenn F. Tilton – non-executive chairman of the board of directors of United Continental Holdings, Inc.

Jeffery A. Smisek – President and Chief Executive Officer, United Continental Holdings, Inc.

Oscar Munoz – Executive Vice President and Chief Financial Officer, CSX Corporation

Shareholders and other interested parties may contact the United Continental Holdings, Inc. Board of Directors as a whole, or any individual member, by one of the following means:

  1. writing to the Board of Directors, United Continental Holdings, Inc., c/o the Corporate Secretary’s Office, HDQLD, 77 W. Wacker Drive, Chicago, IL 60601; or
  2. by emailing the Board of Directors at UALBoard@united.com

If neither of these methods seems to work, try these:

Mail:
P.O. Box 66100
Chicago, IL 60666

Phone (general): (800) (800) 864-8331

Phone Investor Relations: (312) 997-8610

United Continental Holdings, Inc. – Investor Relations – Board of Directors

JETBLUE AIRWAYS

Joel C. Peterson – Independent Chairman of the Board of Jetblue Airways Corporation.

David Barger – President, Chief Executive Officer, Director of JetBlue Airways Corporation.

Mark D. Powers – Chief Financial Officer, Executive Vice President, Treasurer of JetBlue Airways Corporation.

JetBlue Airways Corporation Corporate Office | Headquarters
118-29 Queens Blvd.
Forest Hills, NY 11375
Phone:  (718) 286-7900
Toll Free: 800) 538-2583

http://www.jetblue.com

AIRTRAN

AirTran Airways is a wholly-owned subsidiary of Southwest Airlines.  Thus, complaints against Airtran should be directed to the top executives of Southwest.

SOUTHWEST AIRLINES

David W. Biegler – Chairman and CEO

Douglas H. Brooks – Chairman of the Board, President and Chief Executive Officer
Southwest Airlines Corporate Headquarters
Physical Address:
2702 Love Field Drive Dallas, Texas 75235
Mailing Address:
P.O. Box 36611 Dallas, Texas 75235
Telephone: (214) 792-4000 (Main Switchboard)

Click here: Southwest Airlines Investor Relations – Board of Directors

US AIRWAYS

W. Douglas Parker – Chairman of the Board, CEO

Bruce Lakefield – Vice Chairman of the Board, President, CEO

Derek Kerr – Chief Financial Officer, Executive Vice President

Corporate Contact Information:

Mailing address: US Airways 4000 E. Sky Harbor Blvd. Phoenix, AZ 85034 Corporate headquarters: 111 W. Rio Salado Parkway Tempe, AZ 85281 Phone: (480) 693-0800 7 AM – 5 PM Monday – Friday

Daniel E. Cravens
Director
Investor Relations
US Airways
111 West Rio Salado Parkway
Tempe, AZ 85281

Phone: 480.693.1227

E-mail: Click here: US Airways | Compliments/complaints

Click here: US Airways | Investor relations

Click here: US AIRWAYS GROUP INC (LCC:New York): Board of Directors – Businessweek

ALASKA AIRLINES

William S. Ayer – Chairman

Bradley D. Tilden – President and CEO

Brandon Pederson – Chief Financial Officer

Corporate Offices:

P.O. Box 68900
Seattle, WA   98168

Phone: (206-433-3200

Click here: Executive Leadership – Alaska Airlines

CONTINENTAL AIRLINES

In 2010, Continental Airlines merged with United Airlines.  Direct all inquiries and complaints to United Airlines, whose corporate information is given above.

KGO AIRWAYS: PART FOUR (OF EIGHT)

In Bureaucracy, Business, Law, Self-Help on December 10, 2013 at 12:44 am

The concept of “consumer rights” has not yet reached the airline industry.

Under Federal law, as enforced by the Federal Aviation Administration, airline passengers have only the following guaranteed rights:

If your flight is delayed (such as by bad weather) and you’re stuck on the tarnac:

  • Tarnac delays cannot exceed three hours. You can leave the plane if you choose after that.
  • Food and water must be available after the plane has been stuck on the tarnac for two hours.
  • The airline must service toilets, keep air conditioning on, and keep trash cans clean.

In addition, the U.S. government mandates these “rights” for air travelers:

  1. Compensation when you’re bumped due to overbooking –and for no other reason.
  2. An airline must accept lost/damaged baggage liability up to $3,000 in depreciated value per passenger for a domestic flight (limits on international flights are either about $1,700 or $635, depending on which rule applies).

Beyond those, all you can claim is what’s in each airline’s “contract of carriage.” Those contracts are–naturally–heavily biased toward airlines, not customers.

Given that the law–and the Congressmen who create it–is still largely owned by the airlines, you, as a customer, are forced to make do with the weapons at hand.

These essentially boil down to two:

  1. Threatening the airlines with bad publicity; and
  2. Threatening the airlines with a private or class-action lawsuit.

In both cases, it’s best to first contact the highest-ranking officials in the airline company.

There are two reasons for this:

  1. They have the most to lose, and
  2. They have the power to redress your complaint.

You can try to reach the CEO or one of his assistants during the time of the incident.  But, most likely, this will happen afterwards.

If a mini-Hitler of an airline steward decides to eject you because s/he doesn’t like your clothes or request for help, there’s nothing you can do about it.

If you physically resist, you will almost certainly be arrested and charged with some version of domestic terrorism.  You’ll be shipped off to jail and forced to defend yourself against the bogus charge.

Even if the authorities decide to not prosecute, you’ll have to spend at least several hundred dollars on legal representation.

And, of course, the airlines won’t care.  They won’t be spending a dime on your prosecution–that will be paid for by the local U.S. Attorney’s (federal prosecutor’s) office.

Niccolo Machiavelli, the father of political science, wisely advised in The Prince:

A prince…must imitate the fox and the lion, for the lion cannot protect himself from traps, and the fox cannot defend himself from wolves. 

“One must therefore be a fox to avoid traps, and a lion to frighten wolves.”

This is definitely the time to take on the trappings of a fox.  However painful it is to swallow the insult at the time it’s given, don’t give the airlines an excuse to have you arrested.

Take your revenge afterward.  That’s what musician Dave Carroll did.

Carroll alleged that, in 2008, he and fellow passengers saw United Airlines’ baggage-handling crew throwing guitars on the tarmac in Chicago O’Hare.

He arrived at Omaha, Nebraska, his destination to discover that the neck of his $3,500 Taylor guitar had been broken.

Carroll complained to three United employees, but they proved indifferent.  He filed a claim with the airline–but was told he was ineligible for compensation.

The reason?  He had not filed the claim within the company’s stipulated “standard 24-hour timeframe.”

Carroll turned to his musical roots for a remedy.  He wrote a song, “United Breaks Guitars,” and turned it into a music video which he posted on YouTube and iTunes in July, 2009.

Click here: United Breaks Guitars – YouTube

The song went viral, and became a public relations nightmare for the airline.

The Sunday Times reported that, four days after the video’s posting, United Airlines’ stock price fell 10% costing stockholders about $180 million in value.

Most customers, admittedly, aren’t musicians.  For them–short of suing–the weapons of choice will be:

  • The phone
  • Letters
  • The Internet
  • Consumer protection organizations that can be enlisted

Let’s start with the first: The phone.

Most customers assume the place to take their anger is the airline Customer Service desk.  And the airlines encourage people to do just that.

Don’t do it.

Customer Service is staffed by people who may ooze compassion but who aren’t authorized to do anything on your behalf.

And of course they’ll be well-versed in the standard airline excuses for why your request is denied.

(Think of Dave Carroll and the excuse United’s reps offered him: You didn’t file your claim within 24 hours.)

Even if they truly want to help you, they’ll find themselves outranked at every level.

So take your complaint to someone who has the authority to resolve it.  This means, preferably, the CEO of the airline, or at least one of his executive colleagues.

KGB AIRWAYS: PART THREE (OF EIGHT)

In Bureaucracy, Business, Law, Self-Help on December 9, 2013 at 12:30 am

When Leisha Hailey and her girlfriend kissed aboard a Southwest Airlines flight to Los Angeles, they quickly found themselves in trouble.

Leisha Hailey

A flight attendant told them that Southwest was “a family airline.” When they argued they were targets of homophobia, the attendant ejected them from the plane.

Hailey–the star of Showtime’s The L-Word (and a lesbian)–posted her experience on Twitter.  Calling for a boycot of Southwest, she tweeted:

“I want to know what Southwest Airlines considers as ‘family.’ I know plenty of wonderful same-sex families I would like to introduce them to. Boycott @SouthwestAir if you are gay. They don’t like us.”

Naturally, Southwest had its own explanation for what had happened:

“…We received several passenger complaints characterizing the behavior as excessive. Our crew, responsible for the comfort of all Customers on board, approached the passengers based solely on behavior and not gender. The conversation escalated to a level that was better resolved on the ground, as opposed to in flight.”

In short, the situation was “better resolved on the ground” by forcing two unarmed, non-threatening women to leave the plane rather than having the airline honor their high-priced tickets.

Now, a quick question: When does a camera become a dangerous weapon?

When you snap a picture of an especially rude airline employee.

  • A  Miami photographer was escorted off a US Airways plane and deemed a “security risk” after she did this at Philadelphia International Airport in July, 2011.

Sandy DeWitt believed the employee, Tonialla G., was being rude to several passengers in the boarding area of the flight to Miami.

So DeWitt, a professional photographer, used her iPhone to snap a picture of G.’s nametag.  She intended to file a complaint with US Airways and wanted the picture as evidence.

As DeWitt settled into her seat, preparing for take-off, G. entered the plane and confronted her.

She ordered DeWitt to delete the photo.

DeWitt had already turned off her iPhone, as required before take-off.  She turned the phone back on to prove that the photo hadn’t come out.  Even so, she deleted the too-dark picture.

G. then walked into the cockpit to inform the pilot that DeWitt was a “security risk.”

Suddenly, DeWitt found herself being escorted off the plane by two flight attendants.  Her husband followed.

Speaking with Michael Lofton, a US Airways manager at Philadelphia International Airport, she learned that she would not be allowed back on the plane.

The reason:  She was a “security risk.”

But that didn’t keep Lofton from directing her to American Airlines for a flight back to Miami.

But that flight had already departed and it was already after 7 p.m.  And there were no other flights back to Miami until the following morning.

“We were expecting to spend the night at the airport,” she said.

They eventually boarded a Southwest Airlines flight to Fort Lauderdale at 11 p.m.

Apparently, Southwest didn’t consider her to be a “security risk.”

Naturally, US Airways had a cover-story to explain what had happened.

Todd Lehmacher, a spokesman for US Airways, told msnbc.com that DeWitt was removed for being “disruptive.”

“Once onboard, she was using foul and explicit language,” Lehmacher said. “She was removed at the request of the captain.”

Apparently, “disruptive” means whatever an airline official claims it to mean.

Business Insider ranked US Airways sixth in a list of the 19 Most Hated Companies in America.

The American Customer Satisfaction Index (ACSI) is an economic indicator that measures the satisfaction of consumers across the United States. It is produced by the American Customer Satisfaction Index, a private company based in Ann Arbor, Michigan.

The ACSI interviews about 80,000 Americans annually and asks about their satisfaction with the goods and services they have consumed. And Americans’ most-hated companies include large banks, airlines, power and telecom companies.

David VanAmburg, managing director at ACSI, offered a critical insight into why these companies are so detested.

“These are not terribly competitive industries, as the switching barriers for most of them are quite high,” he told Business Insider in June, 2011.

“In other industries, like the food or clothing sector, the competition is huge. They bend over backwards to make customers happy, because they have to.”

That certainly applies to airlines–whose numbers are limited and continue to shrink due to mergers and the rising cost of fuel.

For the airline industry generally, the former slogan of United Airlines–”Fly the Friendly Skies”–has unofficially been replaced with: “We don’t care. We don’t have to.”

So–when you’re facing a would-be KGB agent masquerading as an airline employee, what do you do?

First, you recognize that the concept of “consumer rights” has not yet reached the airline industry.

Then you do what you can to see that it does.

KGB AIRWAYS: PART TWO (OF EIGHT)

In Bureaucracy, Business, Law, Self-Help on December 6, 2013 at 12:00 am

The First Amendment of the American Constitution guarantees freedom of speech.

But some airline employees haven’t gotten the word.

Click here: 3 Easy Ways to Tell If a Business Puts Its Customers First – DailyFinance

Yes, what you say can get you thrown off an airplane–or worse.  And it doesn’t have to be anything even remotely like a threat.

  • In May, 2011, a US Airways flight was due to depart San Francisco International Airport for Charlotte, North Carolina at 1:20 p.m. But due to bad weather, passengers boarded the plane after 2 p.m.

Once on the plane, a flight attendant told customers over the intercom to hurry up and put their carry-ons in bins so they could take off and make their connecting flight in Charlotte.

One of the passengers, Luke Hazlewood, turned to the person next to him and said it was the airline’s fault they were late, “so don’t get mad at us.”

The flight attendant rushed out of the galley demanding to know who had said that. Once she determined it was Hazlewood, she told him he would have to leave for being disruptive and a threat to the plane.

Sandra Kraus, a former flight attendant, came to Hazlewood’s defense–and the flight attendant told her to get off the plane as well.

Both passengers asked to speak with the captain but he refused to speak with them.

Kraus was put on another flight.  Hazlewood and his accompanying girlfriend (who had left the plane with him) found that US Airways wouldn’t compensate them for a hotel room.

The airline refused to answer questions about the matter. Its written statement said “The passengers interfered with the flight crew and in the interest of safety they had to be removed.”

It’s a truism in both journalism and police work: When people refuse to answer questions, it’s nearly always because they know they have something to hide.

And the airline’s response came in the classic voice of the all-powerful dictator: “They refused to treat me like God and so they had to be eliminated.”

Business Insider ranked US Airways #6 on a list of Click here: The 19 Most Hated Companies In America – Business Insider

  • In December, 2011, three middle-aged women were thrown off an AirTran flight at Palm Beach International Airport after a steward began roughly handling the luggage of one of them.

Marilyn Miller, a lawyer, was buckled in for takeoff when the attendant mishandled her overhead luggage.  “I have breakables in that,” she said.

The attendant ignored her and kept shoving other bags into hers.

Another passenger, Carol Gray, a retired travel agent, asked the same attendant for help, saying that her seat was broken.

“I’m not talking to you,” said the attendant, and poked her in the arm.  He then threatened to throw Miller and Gray off the plane.

“You’ve got to be kidding me,” said Miller.

“Well, you’re getting off,” said the attendant.

Two sheriff’s deputies and airline staff arrived to remove them.

A third passenger, a therapist named Karyn Schoor, spoke up in their defense: “This is crazy, they didn’t do anything.  Why are you doing this to them?”

“Throw her off too,”’ ordered the attendant.

All three women were marched off the plane and back into the terminal.

The women were offered flights on other airlines paid for by AirTran.

And the official explanation given by AirTran?

“Our employees are responsible for the safety and comfort of everyone onboard a flight. Our goal is always to mitigate any uncomfortable situation prior to departure.”

Uncomfortable for whom–the passenger who doesn’t want her luggage roughly treated?  Or the attendant whose ego gets bent out of shape at the slightest objection?

  • In July, 2010, Southwest Airlines removed a slender, five-foot-four woman from a plane to accomodate an obese passenger.

The woman was flying standby from Las Vegas to Sacramento.  She had paid full fare for the last available seat, boarded and stowed her bags–and was told she must deplane immediately.

The reason: A late-arriving, 14-year-old passenger required two seats because of her girth.

When the woman asked Southwest personnel why she was being removed her from the flight, they berated her for daring to question their decision.

The temporarily stranded passenger managed to catch the next flight out to Sacramento.

  • You don’t have to assault someone to be thrown off an airplane. Even kissing your partner will do.

Southwest Airlines kicked Leisha Hailey–who not only plays a lesbian in Showtime’s The L-Word series but is one–and her girlfriend off a flight to Los Angeles.

Their crime?  Kissing.

A flight attendant told them that Southwest was “a family airline.” When they argued they were targets of homophobia, the attendant ejected them from the plane.

KGB AIRWAYS: PART ONE (OF EIGHT)

In Bureaucracy, Business, Law, Self-Help on December 5, 2013 at 12:31 am

With Christmas fast approaching, tens of thousands of Americans will be traveling across the country to visit with loved ones.

And many of them will become the victims of KGB Airways.

In truth, many airline personnel treat passengers the way KGB agents once treated Soviet citizens–with the arrogance that comes from holding near-absolute power over the lives of others.

Consider the following:

  • From the website of American Airlines:

ESSENTIAL NEEDS DURING EXTRAORDINARY DELAYS

In the case of extraordinary events that result in very lengthy onboard delays, American will make every reasonable effort to ensure that essential needs of food (snack bar such as Nutri-Grain®), water, restroom facilities, and basic medical assistance are met.

We are not responsible for any special, incidental or consequential damages if we do not meet this commitment.

Translation:  On one hand, American promises that it will try to ensure that “essential needs of food, water, restroom facilities and basic medical assistance are met” during “very lengthy onboard delays.”  On the other hand, if they “do not meet this commitment,” that’s just the passengers’ tough luck.

ACCEPTANCE OF PASSENGERS

American may refuse to transport you, or may remove you from your flight at any point, for one or several reasons, including but not limited to the following:

  1. Compliance with government requisition of space.
  2. Action necessary or advisable due to weather, or other conditions beyond American’s control.
  3. Refusal to permit a search of person or property for explosives or for deadly, controlled, or dangerous weapons, articles or substances.
  4. Refusal to produce positive identification upon request.
  5. Your physical or mental condition is such that in American’s sole opinion, you are rendered or likely to be rendered incapable of comprehending or complying with safety instructions without the assistance of an attendant.
  6. Your conduct is disorderly, abusive or violent, or you
    1. Appear to be intoxicated or under the influence of drugs,
    2. Attempt to interfere with any member of the flight crew,
    3. Have a communicable disease that has been determined by a federal public health authority to be transmissible to other persons in the normal course of flight,
    4. Refuse to obey instructions from any flight crew member,
    5. Have an offensive odor not caused by a disability or illness,
    6. Are clothed in a manner that would cause discomfort or offense to other passengers,
    7. Are barefoot, or
    8. Engage in any action, voluntary or involuntary, that might jeopardize the safety of the aircraft or any of its occupants.

Translation: “American may refuse to transport you, or may remove you from your flight at any point” for just about any reason it wants to give.

DELAYS, CANCELLATIONS AND DIVERSIONS

American Airlines will provide customers at the airport and onboard an affected aircraft with timely and frequent updates regarding known delays, cancellations and diversions and will strive to provide the best available information concerning the duration of delays and to the extent available, the flight’s anticipated departure time.

We are not responsible for any special, incidental or consequential damages if we do not meet this commitment.

Translation: On one hand, American promises to give customers “timely and frequent updates regarding known delays, cancellations and diversions.”  On the other hand, American absolves itself from any damages “if we do not meet this commitment.”

And how does all this translate into action?

  • In late March, a woman was barred from boarding an American Airlines flight because its staff disliked her choice of clothing.  She was wearing a T-shirt bearing the words: “IF I WANTED THE GOVERNMENT IN MY WOMB, I’D F— A SENATOR.”

After taking a seat she was told by a flight attendant that she needed to speak with the captain, who found the T-shirt “offensive.”  He said she would have to change before she could re-board the plane.

The passenger claims this interaction caused her to miss her connection: Her luggage was checked and “changing shirts without spending money wasn’t an option.”

Business Insider ranked American Airlines 8th on a list of The 19 Most Hated Companies In America.

  • In July, 2011, Malinda Knowles, a 27-year-old financial consultant, was kicked off a JetBlue flight at JFK Airport in New York because of her attire–a baggy blue T-shirt and denim shorts.

A male JetBlue employee walking down the aisle noticed Knowles.  He told her he didn’t think she was wearing enough clothing.  An argument erupted when the employee put his walkie-talkie between her legs to see if she was wearing shorts underneath. When Knowles objected, the JetBlue worker brought her off the plane and to a hangar.

There she modeled for the employees, showing that she was wearing shorts.  She returned to the plane, but the same employee once again approached her and said:  “The captain is refusing to fly you today. We need to remove you from the flight.”

After waiting four hours for another flight, she arrived in Florida.  Apparently the crew of that plane didn’t have any problem with her attire.

Knowles has since filed a lawsuit against JetBlue.

COSTCO VS. WALMART: TWO VERSIONS OF EMPLOYER

In Business on December 3, 2013 at 12:22 am

Corporations aren’t staffed by faceless machines.  They’re staffed by men and women.

And those men and women take their marching orders from the man (usually) or woman at the top.

Thus, you can learn a great deal about a CEO–and his company–by the way his employees are treated.

Consider the differences between Walmart and Costco.

REVENUES:

Costco:  In 2011, its revenues stood at $89 billion.

Walmart: In 2011, its revenues stood at $447 billion.  But profits declined by 4.6%, to $15.7 billion.

HEALTH INSURANCE:

Costco: About 88% of Costco employees have company-supplied health insurance.  “I just think people need to make a living wage with health benefits,” Craig Jelinek, Costco’s CEO and president, told Bloomberg.  “It also puts more money back into the economy and creates a healthier country.  It’s really that simple.”

Walmart: In January, 2014, the nation’s largest private employer will deny health insurance to newly hired employees who work less than 30 hours a week.

Walmart eliminates healthcare coverage for certain workers if their average work-week falls below 30 hours–which regularly happens at the direction of company managers.

Walmart has refused to say how many of its roughly 1.4 million U.S. workers are likely to lose medical insurance under its new policy.

Many of the Walmart workers who might be dropped from the company’s health care plans earn so little that they would qualify for the expanded Medicaid program.

Of course, if they live in any of the 26 Republican-controlled states refusing to expand Medicaid coverage, they’ll wind up with nothing.

“Walmart is effectively shifting the costs of paying for its employees onto the federal government with this new plan, which is one of the problems with the way the law is structured,” said Ken Jacobs, chairman of the Labor Research Center at the University of California, Berkeley.

In 2005, Susan Chambers, Walmart’s then-Vice President of Benefits, outlined how the company could remove sick workers from payrolls and avoid paying healthcare benefits.

Three major studies–in Georgia, Massachussetts and California–found Walmart employees to be the ones most reliant on government aid.

Annually, Walmart employees cost taxpayers more than $1 billion nationwide.

WAGES:

Costco:  Pays a living wage, with its employees starting ats $11.50 per hour.  The average employee wage is $21 per hour, not including overtime.

Walmart: Most Walmart workers earn less than $20,000 a year.  According to Bloomberg News, the average Walmart Associate makes just $8.81 per hour.

CEO SALARY:

Costco: Its CEO and president, Craig Jelinek, made about $4.83 million in 2012.

Walmart: CEO Mike Duke made roughly $19.3 million in 2012.

According to CNN Money: Walmart’s CEO makes as much as 796 average employees.  Costco’s CEO makes 48 times more than the company’s median wage.

HOLIDAYS:

Costco:  Costco closed for Thanksgiving, giving its employees time to spend with their families.

Walmart: Forced its employees–on pain of being fired–to open its stores nationwide at 6 p.m. on Thanksgiving.

The results: Multiple instances of fistfights, taserings and knifings among shoppers whose greed had been roused to fever pitch by Walmart adverftising.

PROMOTINS:

Costco: Hires from within. More than 70% percent of its warehouse managers began their careers working the floor or the register.

Walmart:  Facing mounting criticism for its low salaries, Walmart, on October 29, announced that it would promote more than 25,000 employees by the end of January, 2014.

 STABILITY:

Costco: The annual turnover rate for employees who have worked at the company for more than one year is less than six percent.  For executives, the turnover rate is less than one percent.

Walmart: Since 2008, Walmart has fired or lost 120,000 American workers, while opening more than 500 new U.S. stores.

Many workers quit to find better-paying jobs.  As a result, turnover at Walmart has been correspondingly high.

ADVERTISING:

Costco:  Doesn’t advertise or rely on a public relations staff.

Walmart: By contrast, Walmart spent $1.89 billion on self-glorifying ads in 2011.

Recently, Walmart has been forced to launch a massive PR campaign to counteract its notoriety for low pay, employment of illegal aliens, lack of health benefits and union-busting tactics.

* * * * *

Some things can’t be quantified.

Goodwill, which is created by taking care of one’s employees–paying them a living wage and providing them with medical care–is one of them.

Similarly, ill will–created by paying the lowest possible wages and forcing employees to essentially become welfare clients–is another.

And some things that can be quantified don’t necessarily make for Nirvana.

In 2012, the Forbes 400 stated that the six wealthiest heirs to the Walmart empire were collectively worth $115 billion.

Yet this has not protected the Walton family from bad publicity–such as from striking workers and news media hungry for scandal.

Nor has it shielded the Waltons from ridicule–Jay Leno routinely jokes about the hordes if illegal aliens Walmart “accidentally” hires.

Americans face a stark choice between two types of corporate employer–one that protects its employees, and another that essentially preys on them.

Which direction the nation chooses to go in will largely determine its course for long-term prosperity or short-term ruin.

YOUR CALL IS VERY IMPORTANT TO US: PART TWO (END)

In Bureaucracy, Business, Self-Help on November 6, 2013 at 12:56 am

So you’ve spent the last half-hour or more on the phone, listening to one recorded message after another (and probably a symphony of bad music).

And you’re no closer to solving the problem that caused you to phone the company/agency in the first place.

What to do?

  1. Go on the Internet and look up the company’s/agency’s website.  Look for links to their Board of Directors.  Often enough you’ll get not only their names but their bios, phone numbers and even email addresses.
  2. Start looking at the bottom of the website page.  Many companies/agencies put this information there–and usually in small print.
  3. Look for the names of officials who can help you.  That means the ones at the top–or at least high enough so you can be sure that whoever responds to your call/letter/email has the necessary clout to address your problem.
  4. If you call, don’t ask to speak directly with Mr. Big–that’s not going to happen.  Ask to speak with Mr. Big’s secretary, who is far more accessible.
  5. Keep your tone civil, and try to make your call as brief as possible.  Don’t go into a lot of background about all the problems you’ve been having getting through to someone.
  6. Give the gist and ask for a referral to someone who can help resolve your problem.
  7. If the secretary needs more time to study the problem before referring you to someone else, be patient.  Answer any questions asked–such as your name, address, phone number and/or email.
  8. State–specifically–what you want the company to do to resolve your problem.  If you want a refund or repairs for your product, say so.
  9. Too many consumers don’t specify what they want the company to do–they’re so caught up in their rage and frustration that this completely escapes them. 
  10. Be reasonable.  If you want a refund, then don’t ask for more money than you paid for the product.  If you want to return a product for an exchange, don’t expect the company to give you a new one with even more bells and whistles–unless you’re willing to pay the difference in price.
  11. If you want an agency to investigate your complaint, don’t expect them to drop everything else and do so instantly.  Give them time to assess your information and that supplied by others.
  12. It’s usually possible to get one agency to sit on another–if you can make a convincing case that it’s in that secondary agency’s best interests to do so.  If you’ve been roughed up by local police for no good reason, you can file a complaint with that department–-and the FBI and U.S. Attorney’s Office (federal prosecutor) to investigate.
  13. That doesn’t guarantee they will resolve your problem.  But if you can show that the cops have violated several Federal civil rights laws, the odds are that someone will take a serious look at your complaint.
  14. If a company/agency official has acted so outrageously that the company/agency might now be held liable for his actions, don’t be afraid to say so.  But don’t threaten to sue.  Just point out that the employee has acted in such a way as to jeopardize the company’s/agency’s reputation for integrity/efficiency and that the organization is not well-served by such behavior.
  15. Whoever reads your letter/email will instantly realize the legal implications of what you’re saying–and, in most cases, will take quick action to head off a lawsuit by trying to satisfy your request.  The foremost priority of every bureaucracy is to ensure its own survival.
  16. Give the CEO’s secretary at least one to two days to get back to you.  Remember: Resolving your problem isn’t the only task she needs to complete.
  17. If you’re writing the CEO, make sure you use his full name and title–and that you spell both correctly. People don’t get to be CEOs without a huge sense of ego.  Nothing will turn him off faster than your failing to get his name and title exactly right.
  18. As in the case with his secretary, be brief–no more than a page and a half.  Outline the problem you’re having and at least some (though not necessarily all) of the steps you’re taken to get it resolved.
  19. Then state what you want the company to do.  Again, be fair and reasonable.

YOUR CALL IS VERY IMPORTANT TO US: PART ONE (OF TWO)

In Bureaucracy, Business, Self-Help on November 5, 2013 at 1:15 am

How many times have you called a government agency or company and instantly found yourself put on hold?

To add insult to injury, you usually wind up serenaded by recorded music that would be totally forgettable if it weren’t so unforgivably irritating.

And every 30 seconds or so a recorded voice comes on to assure you: “Your call is very important to us.”

Have you ever wondered:If my call is so important to you, why aren’t you answering it? 

The truth is that most companies and government agencies don’t want their employees speaking with the customers who make their existence a reality.

Having your questions answered by another human being requires the company/agency to assign–and pay–people to do just that.

Most hiring managers don’t want to hire any more people than they absolutely have to.  They want to siphon off as much of the company’s profits for themselves as possible.

And assigning people to answer customers’ calls means that many of those calls will take time to answer, because some problems can’t be solved in a matter of seconds.  To a bean-counting executive, time is money.

Even government agencies like police departments don’t want to spend any more time than necessary taking the calls of those who need to reach them.

Even calls to 911 can leave you talking to no one, with only a recorded message telling you to wait until someone deigns to speak with you.

That’s why many bureaucracies arrange that when you call for help, you’re fobbed off with a recorded message telling you to visit the company’s or agency’s website.

This assumes, of course, that

  1. You have a computer; and
  2. If you do, you also have Internet access.

If you

  • Don’t have a computer; or
  • You have a computer but don’t have Internet access; or
  • You do have Internet access but the service is down,

you’re flat out of luck.

And the agency/company couldn’t care less.

But it need not be this way.

Companies and agencies can treat their customers with respect for their time and need for help.

That’s why companies that genuinely seek to address the questions and concerns of their customers reap strong customer loyalty–and the profits that go with it.

One of these is LG, which produces mobile phones, TVs, audio/video appliances and computer products.

LG actually offers an 800 Customer Care number that’s good 24-hours a day.

Its call center is staffed with friendly, knowledgeable people who are willing to take the time to answer customer questions and guide them through the steps of setting up the appliances they’ve bought.

Another company that dares to have human beings stand behind its products–and explain how to use them–is The Sharper Image.

Recently, Dave, a friend of mine, bought an electronic alarm clock that allows you to wake up to a variety of exotic souds–such as a thunderstorm, the seashore, chirping birds or foghorns.

A brochure on how to set the alarm and sounds came with the clock, but Dave couldn’t make sense of it.  Luckily, there was an 800 number given in the brochure for those who needed to be walked through the necessary steps.

Dave called The Sharper Image and quickly found himself connected with a friendly and knowledgeable customer care rep.  She clearly and patiently explained what he needed to do to choose which sounds he wanted to awaken to.

And then she just as patiently repeated that list of steps while he quickly typed them up for future use if he forgot what to do.

Such an approach to customer service is not new–just extremely rare these days.

In his 1970 bestselling primer on business management, Up the Organization, Robert Townsend offered the following advice to company CEOs: “Call yourself up.”

“When you’re off on a business trip or a vacation,” writes Townsend, “pretend you’re a customer.  Telephone some part of your organization and ask for help.  You’ll run into real horror shows.

“Don’t blow up and ask for name, rank and serial number–you’re trying to correct, not punish.  Just suggest to the manager (through channels, dummy) that he make a few test calls himself.”

So how do you cope with agencies/companies that don’t care enough to help their customers?

I’ll address that in my next column.

IT’S ALL ABOUT THE EGO

In Bureaucracy, Business, History, Politics, Social commentary on October 29, 2013 at 12:58 pm

Why do so many CEOs hate President Barack Obama?

It isn’t because they’re being over-taxed and -regulated,d as so many on the Right would have you believe.

According to a January 16, 2013 story published in Bloomberg:

  • U.S. corporations’ after-tax profits have grown by 171% under Obama.
  • This is more than has existed under any President since World War II.
  • Corporate profits are now at their highest level, relative to the economy, since the government began keeping records in 1947.
  • Profits are more than twice as high than during Ronald Reagan’s Presidency.
  • They are more than 50% greater than during the late-1990s Internet boom.

Click here: Corporate Profits Soar as Executives Attack Obama Policy – Bloomberg

So if money isn’t the issue, what is?

In a word: Ego.

Jonathan Alter, author of The Center Holds: Obama and His Enemies, provides some eye-opening insights into relations between the President and business leaders.

He notes, for example, that even before taking office as President in 2009, Obama pushed through Congress the second $350 billion portion of the $700 billion Troubled Asset Relief Program (TARP)

And he stablilized the almost-wrecked American financial system with stress tests and regulatory reforms.

So Obama believed that business CEOs would be grateful for his efforts on their behalf.

And what did the President get in return?

  • The rise of the Tea Party, angered by government bailouts to mega-corporations–and the subsequent loss of a Democratic House of Representatives; and
  • Ingratitude and resentment from the very CEOs whose corporations he had saved.

CEOs visiting the White House often believed the President didn’t take them seriously.

For example, many of them wanted a tax amnesty on their overseas earnings.  And Obama would ask: How will the government make up for the lost Treasury revenues that would come from such a huge tax break?

Many CEOs thought he was not taking them seriously.

Obama was in fact being serious, and was hoping that his greed-obsessed visitors would help him find an answer that would satisfy both parties.

What the President apparently didn’t understand was this: Most CEOs weren’t used to being dealt with on an equal basis.

They were used to people cowering before them, or instantly agreeing with anything they said.

For Obama, who had taught Constitutional law at the University of Chicago from 1992 to 2004, such  intellectual querys were routine.  He had enjoyed the cut-and-thrust of such exchanges with his law students.

But his law students had not been billionaires with billionaire-sized egos.

One Wall Street CEO charged that Obama regarded intellectuals as a cut above political operatives–and two cuts above businessmen.

As Alter writes: “Being worth a billion dollars wasn’t going to get the President…to believe that your insights were better than anyone else’s.”

Obama was angered that many CEOs felt that nothing should change–even after the excesses of greed-fueled banks almost destroyed the nation’s economy in 2008.

Thus, bank CEOs had furiously opposed the Dodd-Frank bank re-regulations that had been imposed to prevent a recurrence of such abuses.

Obama felt that bankers were ungrateful for his pushing through the second part of the TARP program that had saved their corporations from the CEOs’ own self-destructive greed.

As Alter sums up: “The complex psychology of business confidence was only partly about their tax rates and the threat of regulation; the real problem was personal.

“They [businessmen] had an intuitive sense that Obama didn’t particularly like them, and they responded in kind.”

These are not the kinds of insights you’ll get by reading the highly sanitized bios of corporate chieftains.

As a result, during the 2012 Presidential race, Mitt Romney received nearly $150 million, or more than 15% of his total money raised, from New York.  Which meant mostly from Wall Street.

“We got a lot of Barack Obama’s Wall Street money,” said Spencer Zwick, Romney’s finance director, after the campaign.

A passage from Finley Hooper’s classic Roman Realities puts an ancient-world spin on Obama’s relations with wealthy businessmen.

Assessing the reasons for why so many patricians hated Julius Caesar, Hooper writes:

“Caesar…like a teacher, seemed always to be directing affairs in a world of children–chiding one, patting another–yet too far above them all to care about hurting any.

“To less gifted men, however, his aloofness, even if mixed with kindness, was thought to be patronizing.  They could not believe that in his heart he really cared about them.

“Caesar never bothered to ask for another man’s opinion.  He lacked the tact by which a talented person might reasure others that they have worth, too.

“Pardons, jobs or favors did not completely satisfy the recipients’ craving for attention….

“Caesar…was a supreme egotist wrapped up in his own sense of well-being and good service to the state.

“…For all his experience and sophistication, he had never learned how ungrateful men can be–especially those who feel ignored.”

It has been President Obama’s bad luck–like that of Julius Caesar– to find himself at odds with powerful men whose profits he has greatly expanded.