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Archive for the ‘Business’ Category

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.

BARTHOLOMEW AND THE RADIATION COUNTERS

In Bureaucracy, Business, History, Politics, Social commentary on September 18, 2013 at 12:29 am

Dr. Seuss (Theodore Geisel) published over 60 children’s books, which were often filled with imaginative characters and rhyme.

Among his most famous were Green Eggs and Ham, The Cat in the Hat, and One Fish, Two Fish, Red Fish, Blue Bish.

Honored in his lifetime (1904-1991) for the joy he brought to countless children, Dr. Seuss may well prove one of the unsung prophets of our environmentally-threatened age.

In 1949, he penned Bartholomew and the Oobleck, the story of a young page who must rescue his kingdom from a terrifying, man-made substance called Oobleck.

The story is quickly told: Derwin, the King of Didd, announces that he’s bored with sunshine, rain, fog and snow.  He calls in his black magicians to create a new type of weather.

The magicians say they can do it.

“What will you call it?” asks the King.

“We’ll call it Oobleck,” says one of the magicians.

“What will it be like?” asks King Derwin.

“We don’t know, sire,” the magician replies.  “We’ve never created Oobleck before.”

The next morning, Oobleck–a greenish, glue-like substance–starts raining.

The king orders Bartholomew to tell the Royal Bell Ringer that today will be a holiday.   But the bell doesn’t ring because it’s filled with Oobleck.

Bartholomew warns the Royal Trumpeter about the Oobleck, but the trumpet gets stopped up with the goo.  The Captain of the Guards thinks the Oobleck is pretty and sees no danger in it–until he eats some, and his mouth gets glued shut.

The Oobleck rain intensifies.  The falling blobs–now as big as buckets full of broccoli–break into the palace, immobilizing the servants and guards.

At the climax of the story, Bartholomew confronts King Derwin for giving such a rash order.  To stop the plague, says Bartholomew, the king must say he’s sorry.

But Derwin’s pride won’t let him do it.

“If you can look at all this horror you’ve created and not say you’re sorry, then you’re no sort of king at all,” shouts Bartholomew.

Overcome with guilt, King Derwin utters the magic words: “You’re right, this is all my fault, and I am sorry.”

Suddenly the Oobleck stops raining and the sun melts away the goop.

With life returning to normal, King Derwin mounts the bell tower and rings the bell.  He proclaims a holiday directed not to Oobleck, but to rain, sun, fog and snow, the four elements of Nature–of which Man is but a part.

* * * * *

Flash forward to March 11, 2011: A 9.0 offshore earthquake hits Japan and triggers a scram that shuts down the three reactors at the Fukushima 1 Nuclear Power Plant.

The quake, in turn, triggers a tsunami which cripples the site, stopping the backup fuel generators and causing a station blackout.

The resulting lack of cooling leads to explosions and meltdowns at the facility.  Three of the six reactors and one of the six spent fuel pools become casualties.

Thirty months later, the plant remains crippled.  The radiation that continues to pour from it is lethal enough to kill an unprotected man within hours.

About 400 tomes of groundwater are streaming into the reactor basement from the hills behind the plant each day.  The water is pumped out and held in about 1,000 storage tanks.  The tanks contain 330,000 tomes of water with varying levels of toxicity.

And the Japanese government is no closer to ending that deadly leakage than it was on the day the plant was crippled.

There is a moral to be learned here–but not by corporate CEOs who exchange lucrative, short-terrm profits for a Devil’s bargain with nuclear contamination.

It’s a moral only for those who are willing to confront the truth head-on:

There are forces in Nature far more powerful than anything Man and his puny strength and cleverness can imagine–or harness.  And we invoke the wrath of those forces at our own peril.

In the world of children’s stories, it’s possible for a king to undo the terrible damage he’s unleashed by finding the courage to say: “I’m sorry.”

The top executives of the company that runs the Fukushima nuclear plant–and the government officials who have refused to hold the company accountable–have been saying “I’m sorry” for the last 30 months.

It hasn’t proven enough.

And the citizens of Japan–and countries well beyond it–will be living with the lethal fallout of this environmental holocaust for decades–if not centuries–to come.

CORPORATIONS ARE GREEDY PEOPLE, TOO

In Bureaucracy, Business, Law, Politics, Social commentary on August 29, 2013 at 12:01 am

“How many men ever went to a barbecue and would let one man take off the table what’s intended for nine-tenths of the people to eat? The only way you’ll ever be able to feed the balance of the people is to make that man come back and bring back some of that grub that he ain’t got no business with!”

–Louisiana Senator Huey P. Long, 1934

It was August 11, 2011–one year before he would receive the official Republican nomination for President.

Hustling for votes, Mitt Romney was speaking to a crowd of hundreds at the Iowa State Fair. He was being pressed about raising taxes to help cover entitlement spending.

Suddenly, a heckler suggested raising corporate tax rates.

Romney responded: “Corporations are people, my friend. Of course they are. Everything corporations earn ultimately goes to the people. Where do you think it goes? Whose pockets? Whose pockets? People’s pockets. Human beings, my friend.”

The line earned him a sustained round of applause from the crowd.

If it’s true that corporations are people, then they are exceptionally greedy and selfish people.

A December, 2011 report by Public Campaign, highlighting corporate abuses of the tax laws, makes this all too clear.

Public Campaign is a national nonpartisan organization dedicated to reforming campaign finance laws and holding elected officials accountable.

Related image

Summarizing its conclusions, the report’s author writes:

“Amidst a growing federal deficit and widespread economic insecurity for most Americans, some of the largest corporations in the country have avoided paying their fair share in taxes while spending millions to lobby Congress and influence elections.”

Its key findings:

  • The thirty big corporations analyzed in this report paid more to lobby Congress than they paid in federal income taxes between 2008 and 2010, despite being profitable.
  • Despite making combined profits totaling $164 billion in that three-year period, the 30 companies combined received tax rebates totaling nearly $11 billion.
  • Altogether, these companies spent nearly half a billion dollars ($476 million) over three years to lobby Congress. That’s about $400,000 each day, including weekends.
  • In the three-year period beginning in 2009 through most of 2011, these large firms spent over $22 million altogether on federal campaigns.
  • These corporations have also spent lavishly on compensatng their top executives ($706 million altogether in 2010).

Among those corporations whose tax-dodging and influence-buying were analyzed:

  • General Electric
  • Verizon
  • PG&E
  • Wells Fargo
  • Duke Energy
  • Boeing
  • Consolidated Edison
  • DuPont
  • Honeywell International
  • Mattel
  • Corning
  • FedEx
  • Tenet Healthcare
  • Wisconsin Energy
  • Con-way

The report bluntly cites the growing disparity between the relatively few rich and the vast majority of poor and middle-class citizens:

“Over the past few months, a growing protest movement has shifted the debate about economic inequality in this country.

“The American people wonder why members of Congress suggest cuts to Medicare and Social Security but won’t require millionaires to pay their fair share in taxes.

“They want to know why they are struggling to find jobs and put food on the the table while the country’s largest corporations get tax breaks and sweetheart deals, then use that extra cash to pay bloated bonuses to CEOs or ship jobs overseas.

“….At a time when millions of Americans are still unemployed and millions more make tough choices to get by, these companies are enriching their top executives and spending millions of dollars on Washington lobbyists to stave off higher taxes or regulations.”

Assessing the results of corporate tax-dodging, the report states:

  • Using various tax dodging techniques, including stashing profits in overseas tax havens and tax loopholes, 29 out of 30 companies featured in this study succeeded in paying no federal income taxes from 2008 through 2010.
  • These 29 companies received tax rebates over those three years, ranging from $4 million for Corning to nearly $5 billion for General Electric and totally nearly $11 billion altogether.
  • The only corporation that paid taxes in that three-year period, FedEx, paid a three-year tax rate of 1%, far less than the statutory rate of 35%.

The report bluntly notes the hypocrisy of corporate executives who call themselves “job creators” while enriching themselves by laying off thousands of employees:

“Another area where these corporations have decided to spend lavishly is compensation for their top executives ($706 million altogether in 2010).

“Executives doing particularly well work for General Electric ($76 million in total compensation in 2010), Honeywell International ($54 million), and Wells Fargo ($50 million).

“Executives who have seen the greatest increase work for DuPont (188% increase), Wells Fargo (180% increase) and Verizon (167% increase).

Despite being profitable, some of these corporations have actually laid off workers.

Since 2008, seven of the corporations have reported laying off American workers. The worst offenders are Verizon, which laid off  at least 21,308 workers, and Boeing, which fired at least 14,862 employees.

Insisting that “corporations are people” wins applause from the wealthiest 1% and their Right-wing shills. But it does nothing to better the lives of the increasingly squeezed poor and middle-class.

If the nation is to avoid economic and moral bankruptcy, Americans must demand that powerful corporations be held accountable–and punished harshly when they behave irresponsibly.

THE CASEY DOCTRINE

In Bureaucracy, Business, History, Law on August 2, 2013 at 9:59 pm

When William J. Casey was a young attorney during the Great Depression, he learned an important lesson.

Jobs were hard to come by, so Casey thought himself lucky to land one at the Tax Research Institute of America in New York.

His task was to closely read New Deal legislation and write reports explaining it to corporate chieftains.

At first, he thought they wanted detailed legal commentary on the meaning of the new legislation.

But then he quickly learned a blunt truth: Businessmen neither understood nor welcomed Franklin D. Roosevelt’s efforts to reform American capitalism.  And they didn’t want legal commentary.

Instead, they wanted to know: “What must we do to achieve minimum compliance with the law?”

In short: How do we get by FDR’s new programs?

Fifty years later, Casey would bring a similar mindset to his duties as director of the Central Intelligence Agency for President Ronald Reagan.

William J. Casey 

He was presiding over the CIA when it deliberately violated Congress’ ban on funding the “Contras,” the Right-wing death squads of Nicaragua.

Casey gave lip service to the demands of Congress.  But privately, with the help of Marine Lieutenant  Colonel Oliver North, he set up an “off-the-shelf” operation to provide arms to overthrow the leftist government of Daniel Ortega.

It was what President Ronald Reagan wanted.  So Casey felt he had a duty to get it done.

But the “Casey Doctrine” of minimum compliance didn’t die with Casey (who expired of a brain tumor in 1987).

It’s very much alive among the American business community as President Barack Obama seeks to give medical coverage to all Americans, and not simply the ultra-wealthy.

The single most important provision of the Affordable Care Act (ACA)–better known as Obamacare–requires large businesses to provide insurance to full-time employees who work more than 30 hours a week.

For part-time employees, who work fewer than 30 hours, a company isn’t penalized for failing to provide health insurance coverage.

Obama prides himself on being a tough-minded practitioner of “Chicago politics.”  So it’s easy to assume that he took the “Casey Doctrine” into account when he shepherded the ACA through Congress.

But he didn’t.

The result was predictable.  And its consequences are daily becoming more clear.

Employers feel motivated to move fulltime workers into part-time positions–and thus avoid

  • providing their employees with medical insurance and 
  • a fine for non-compliance with the law.

Some employers have openly shown their contempt for President Obama–and the idea that employers actually have an obligation to those who make their profits a reality.

The White Castle hamburger chain is considering hiring only part-time workers in the future to escape its obligations under Obamacare.

No less than Jamie Richardson, its vice president, has admitted this in an interview.

“If we were to keep our health insurance program exactly like it is with no changes, every forecast we’ve looked at has indicated our costs will go up 24%.”

Richardson claimed the profit per employee in restaurants is only $750 per year.  So, as he sees it, giving health insurance to all employees over 30 hours isn’t feasible.

Nor is Richardson the only corporate executive determined to shirk his responsibility to his employees.

John Schnatter, CEO of Papa John’s Pizza, has been quoted as saying:

  • The prices of his pizzas will go up–by eleven to fourteen cents price increase per pizza, or fifteen to twenty cents per order; and
  • He will pass along these costs to his customers.

“If Obamacare is in fact not repealed,” Schnatter told Politico, “we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.”

After all, why should a multi-million-dollar company show any concern for those who make its profits a reality?

Consider:

  • Papa John’s is the third-largest pizza takeout and delivery chain in the United States.
  • Its 2012 revenues were $318.6 million, an 8.5 percent increase from 2011 revenues of $293.5 million.
  • Its 2012 net income was $14.8 million, compared to its 2012 net income of $12.1 million.

In May, 2012, Schnatter hosted a fundraising event for Republican Presidential candidate Mitt Romney at his own Louisville, Kentucky mansion.

“What a home this is,” gushed Romney.  “What grounds these are, the pool, the golf course.

“You know, if a Democrat were here he’d look around and say no one should live like this. Republicans come here and say everyone should live like this.”

Of course, Romney conveniently ignored a brutally ugly fact:

For the vast majority of Papa John’s minimum-wage-earning employees-–many of them working only part-time-–the odds of their owning a comparable estate are non-existent.

Had Obama been the serious student of Realpolitick that he claims to be, he would have predicted that most businesses would seek to avoid compliance with his law.

To counter that, he need only have required all employers to provide insurance coverage for all of their employees—regardless of their fulltime or part-time status.

This, in turn, would have provided two substantial benefits:

  • All employees would have been able to obtain medical coverage; and
  • Employers would have been encouraged to provide fulltime positions rather than part-time ones, since they would feel: “Since I’m paying for fulltime insurance coverage, I should be getting fulltime work in return.”

The “Casey Doctrine” needs to be kept constantly in mind when reformers try to protect Americans from predatory employers.

MORE THAN THE “N-WORD”: PART FOUR (END)

In Bureaucracy, Business, Law, Social commentary on July 5, 2013 at 12:07 am

Deserted by most of her major sponsors and branded as a racist by the media, Paula Deen believes she has found the magic solution to her problems:  Hollingsworth v. Perry.

That’s the Supreme Court case which effectively legalized gay marriage in California.

On July 1, Deen’s lawyers cited Chief Justice John Roberts’ decision in a filing submitted to the U.S. District Court in the Southern District of Georgia.  To quote Roberts:

“In other words, for a federal court to have authority under the Constitution to settle a dispute, the party before it must seek a remedy for a personal and tangible harm.”

On June 26, the Supreme Court rejected former California State Senator Dennis Hollingsworth’s defense of Proposition 8, which banned same-sex marriage.  The reason: The Justices believed that, as a heterosexual, he could not be tangibly harmed by same-sex marriage.

Applying this to the Deen lawsuit: Lisa Jackson can’t sue Deen and her brother, Earl “Bubba” Hiers for racial discrimination because she herself is white–and thus could not have been harmed by racial discrimination, even if this had occurred.

While these legal gymnastics may offer Deen some momentary solace, they come too late to prevent the loss of millions of dollars she has suffered in the mass desertion of her sponsors.

Mega-corporations like the Food Network, Wal-Mart and Smithfield Foods aren’t going to renew their ties to Deen anytime soon–if ever.  And, at this point, “if ever” looks more like “never.”

The scandal ensuing from her admitting to use of the “N-word” in her deposition has already cost her far more than any court judgment could.

Moreover, she desperately needs to put this disaster behind her–and as quickly as possible.

Her appearances on TV and the Internet have been filled with self-pitying tears and pleas for forgiveness.  But  they have most likely reminded viewers of the infamous “I Have Sinned” extravaganza put on by televangelist Jimmy Swaggart in 1988.

Paula Deen apology

Outed with a prostitute, Swaggart gave an alternately fiery and tearful speech to his family, TV congregation and God: “I have sinned against You, my Lord, and I would ask that Your Precious Blood would wash and cleanse every stain until it is in the seas of God’s forgetfulness, not to be remembered against me anymore.”

Jimmy Swaggart’s confession

Yes, the U.S. District Court might rule in Deen’s favor that, as a white, Jackson could not have been harmed by racial discrimination.

But Jackson’s lawyers can certainly argue that she was harmed by receiving unequal pay and being exposed to a climate of sexual harassment, obscenity, assault, battery and humiliating behavior.

The longer this lawsuit drags on, the more the public wll be exposed to the truth about Deen’s treatment of her employees.  And the less likely they–and, more importantly, her former sponsors–will be to forgive her.

So no matter how clever she thinks her lawyers are, her best bet would be:

  • Settle the lawsuit–quickly;
  • Drop out of the limelight; and
  • Work quietly to regain the trust of the public and as many of her former sponsors as possible.

The media has focused its attention on Deen’s admission to having used the “N-word.”  But clearly she was running a dysfunctional operation–replete with alcoholism, racial prejudice, violence, sexual harassment and theft.

Deen has claimed she knows that the days of Southern racism are past.  But according to the complaint filed against her by her former General Manager, that past remains very much alive at Deen’s restaurants:

  • Requiring black employees to use separate bathrooms and entrances from whites.
  • Holding black employees to “different, more stringent standards” than whites.
  • Allowing her brother, Earl “Bubba” Hiers, to regularly made offensive racial remarks.
  • Allowing Hiers to make inappropriate sexual comments.
  • Allowing Hiers to force female employees to view pornography with him.
  • Allowing Hiers to often violently shake employees.
  • Allowing Hiers to come to work in “an almost constant state of intoxication.”
  • Enabling Hiers’ behavior by ignoring Jackson’s efforts to discuss his behavior.
  • Holding “racist views herself.”

Many of Deen’s supporters have claimed she is the victim of anti-Southern prejudice.

But the truth appears that Deen is far less victim than victimizer–allowing her brother to subject both his black and female employees to obscene, alcoholic, violent and humiliating behavior.

In her deposition, Deen admitted to being warned by MackWorks, a business consulting firm, that sexual/racial discrimination was rife at her brother’s restaurant.

And how did she respond?

“I didn’t read the report,” admitted Deen. “I know my brother.  I know his character.  If I ask him something, he would not lie to me, nor would I to him.  There was nothing to investigate.”

The wonder is not that the chickens have finally come home to roost for Paula Deen.  The wonder is that it took so long for them to do so.

MORE THAN THE “N-WORD”: PART THREE (OF FOUR)

In Bureaucracy, Business, Law, Social commentary on July 4, 2013 at 1:00 am

The media has focused exclusively on Paula Deen’s use of the so-called “N-word”.  In doing so, it has ignored more important aspects of the lawsuit filed against her.

The plaintiff in the case is Lisa Jackson, former General Manager of Uncle Bubba’s Oyster House Restaurant in Savannah, Georgia.

Lisa Jackson

At the center of the complaint filed in the case is Earl “Bubba” Hiers, the brother of Paula Deen.

Among the allegations listed in the complaint:

  • Hiers “frequently visits strip clubs and would bring to the workplace numerous stories…regarding the highlights of his visits.”
  • Hiers “commented to…Jackson regarding a female employee who was married to a significantly younger man, ‘Can you imagine that man going to bed with her?'”
  • “The male General Manager of the Lady & Sons Restaurant is paid substantially more” than Jackson was as General Manager at Uncle Bubba’s Oyster House–even though both are run by the Paula Dean Family of Companies.
  • In addition, “there are male managers below the General Manager level at Lady & Sons Restaurant that are compensated more than…Jackson and who received compensation in addition to salary, including bonuses and retirement not allowed to…Jackson.”
  • On July 20, 2010, Jackson told Hiers that a white restaurant employee had made “a sexually harassing comment” to a black kitchen staffer.  “Seething with anger and red in the face….Hiers repeatedly screamed at [the witness] asking what he saw….Unsatisfied with [the witness’s] response…Hiers physically and violently shook him and stated, ‘Fuck your civil rights.  You work for me and my sister Paula Deen,’ saying futher: ‘You’re not going to get me sued over some little bitch.’  Mr. Hiers proceeded to physically and violently shake [the employee].”
  • “The staff of Uncle Bubba’s restaurant was in a constant state of fear awaiting Bubba Hiers’ arrival at the restaurant and any required interaction with him.”
  • “The stress of repeatedly taking on the role of anticipating…Hiers’ violence, moderating it to the extent possible, and playing the go-between role with her staff caused…Jackson enormous stress.”
  • This “caused chest pains and…panic attacks that would often begin when…Hiers’ truck pulled into the parking lot or upon appearance of the white cup–the styrofoam cup poured almost full with whiskey at approximately 10 a.m., whereupon…Hiers began his day of drinking and abusive behavior.  When the truck pulled up or the white cup appeared, staff would scatter, leaving…Jackson to manage…Hiers.”
  • “Jackson’s pleas for relief from the harassment to senior management also took the form of requests…for a transfer anywhere in the company–even if it required a cut in pay.  But she was told…that Paula Deen would never let her leave Uncle Bubba’s restaurant.”
  • When Jackson directly asked Deen for a transfer, Deen “told…Jackson she could never leave Uncle Bubba’s restaurant.”
  • “Corporate counsel James P. Gerard would frequently call…Jackson at home in the evenings and on the weekend to discuss and sympathize with the discriminatory conditions and abusive treatment she confronted.”
  • “For over five years, Ms. Jackson made numerous and frequent complaints of racial and sexual harassment and abusive treatment to the highest levels of corporate management and ownership, including:
  • “Defendants Paula Deen and Bubba Hiers; Paula Deen Enterprises Chief Operation Officer and Director of Operations Theresa Fueger; the Certified Public Accountant…Karl Schumacher; and to the attorney for defendants, James P. Gerard.”
  • “The conduct was universally known and tolerated within the ownership and management levels of the corporate enterprise, and by corporate counsel and no remedy was offered.”

Deen hasn’t helped herself with her response to the firestorm of criticism that has descended upon her.

On June 20, the full, unedited transcript of Deen’s deposition was leaked–proving that she did, in fact, admit to using the dreaded “N-word.”

The media chose to focus on this–and completely ignored the multiple instances of sexual/racial harassment, drunkenness and violence.

On June 22, Deen canceled a scheduled appearance on the Today show to discuss the reports. She released a video apology that went viral. This was quickly taken down and replaced with a second version.

Paula Deen apology video

“Your color of your skin, your religion, your sexual preference does not matter to me,” Deen told her viewers. “But it’s what in the heart. What’s in the heart.  And my family and I try to live by that.”

Deen then posted a third video, directly apologizing to Today host Matt Lauer for cancelling her scheduled June 22 interview with him.

On June 26, Deen finally appeared on Today, tearfully offering a response that was half-apology, half-defiance:

“If there’s anyone out there that has never said something that they wished they could take back. If you’re out there, please pick up that stone and throw it so hard at my head that it kills me. Please. I want to meet you. I is what I is and I’m not changing.”

But none of these appearances have reclaimed one lost sponsor–nor caused the media to back off.