AA Management

[twaokc]

A MODERN PARABLE . . . . .


A Japanese company ( Toyota ) and an American company (Ford) decided to have a canoe race on the Missouri River . Both teams practiced long and hard to reach their peak performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.

Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens for the rower. There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India .

Sadly, The End.

Here's something else to think about:
Ford has spent the last thirty years moving all its factories out of the US , claiming they can't make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US . The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.

Ford folks are still scratching their heads.

IF THIS WEREN'T TRUE, IT MIGHT BE FUNNY.

 

[FrequentFlierCA]

Sorry folks, but this is a stupid analogy for several reasons:

1. AA has hardly outsourced at all, having resisted India Call Centers and kept maintenance US-based.

2. If Ford has moved all its factories outside of the US that's news to me. What do you call those huge plants in Michigan?

3. Even disregarding the above, the business models are so different that the comparison doesn't begin to hold up.

Nice try.

 

[dot88]

Hardly outsourced?? How long have you been flying? Check out from today back to 1995. (when AA was making money.) Twenty-nine profitable cities were outsourced throughout 1994-1995. Sold off to different companys that had no clue about the airline business. As of today most of those cities ended up shutting down or AA/AE took over once again. I know some of those airports were in CA.

 

[ReadyNow]

A MODERN PARABLE . . . . .


TOYOTA has spent the last thirty years building more than a dozen plants inside the US . The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.

Ford folks are still scratching their heads.

IF THIS WEREN'T TRUE, IT MIGHT BE FUNNY.

"The Wall Street Journal reported on Friday Jan 04, 2008 that one reason Japan isn't growing faster than its current 1.5% annualized rate lies in a shift in hiring by companies like Hino Motors Ltd. The truck-making unit of Toyota Motor Corp. is paying record dividends this year. But it also has been filling thousands of factory jobs with a new kind of employee: temporary workers who are paid as little as 1,150 yen, or $10.50, an hour and get few benefits."

"For nearly two decades, the UAW has been trying to win the right to represent workers at Toyota's Georgetown plant. And for nearly two decades, a majority of them have said, "No, thank you.'' "

Maybe the problem is with the union not the management. After all, AA management has is the only carrier to avoid Chapt 11....that's got to say something.

 

[dot88]

"The Wall Street Journal reported on Friday Jan 04, 2008 that one reason Japan isn't growing faster than its current 1.5% annualized rate lies in a shift in hiring by companies like Hino Motors Ltd. The truck-making unit of Toyota Motor Corp. is paying record dividends this year. But it also has been filling thousands of factory jobs with a new kind of employee: temporary workers who are paid as little as 1,150 yen, or $10.50, an hour and get few benefits."

"For nearly two decades, the UAW has been trying to win the right to represent workers at Toyota's Georgetown plant. And for nearly two decades, a majority of them have said, "No, thank you.'' "

Maybe the problem is with the union not the management. After all, AA management has is the only carrier to avoid Chapt 11....that's got to say something.

 

[The Goose]

"The Wall Street Journal reported on Friday Jan 04, 2008 that one reason Japan isn't growing faster than its current 1.5% annualized rate lies in a shift in hiring by companies like Hino Motors Ltd. The truck-making unit of Toyota Motor Corp. is paying record dividends this year. But it also has been filling thousands of factory jobs with a new kind of employee: temporary workers who are paid as little as 1,150 yen, or $10.50, an hour and get few benefits."

"For nearly two decades, the UAW has been trying to win the right to represent workers at Toyota's Georgetown plant. And for nearly two decades, a majority of them have said, "No, thank you.'' "

Maybe the problem is with the union not the management. After all, AA management has is the only carrier to avoid Chapt 11....that's got to say something.

Yep - it says the workers came to the aid of their company with billions in concessions only to get a sermon about wage market rates while the executive trash has raped the shareholder for $300 million in bonuses.

Yessir - it says quite a bit.

 

[Joe Patroni]

Yep - it says the workers came to the aid of their company with billions in concessions only to get a sermon about wage market rates while the executive trash has raped the shareholder for $300 million in bonuses.

Yessir - it says quite a bit.

And don't forget the unions The unions approved the bonus scheme during the giveback negotiations. Yes sir, way to look out for the members.

 

[The Goose]

And don't forget the unions The unions approved the bonus scheme during the 2003 giveback negotiations. Yes sir, way to look out for the members.

I remember that - If I recall, the bonuses were set up to be paid from company cash originally.

Evidently, the recipients took another look at their possibilities and decided if they would get the unions to agitate their memberships a bit, they'd be ok'd to sell stock and get much more than what the company's limited cash would allow.

 

[The Goose]

And don't forget the unions The unions approved the bonus scheme during the 2003 giveback negotiations. Yes sir, way to look out for the members.

I remember that - If I recall, the bonuses were set up to be paid from company cash originally.

Evidently, the recipients took another look at their possibilities and decided if they would get the unions to agitate their memberships a bit, they'd be ok'd to sell stock and get much more than what the company's limited cash would allow.

Little Jimmy of TWU fame and those in charge of the other two 'unions' can always be counted on to help out their friends in management.

 

[Joe Patroni]

I remember that - If I recall, the bonuses were set up to be paid from company cash originally.

Evidently, the recipients took another look at their possibilities and decided if they would get the unions to agitate their memberships a bit, they'd be ok'd to sell stock and get much more than what the company's limited cash would allow.

Very true. The only thing the unions demanded was the strike date was five years for management instead of three for us. Five years later, the stock was a $40.