The Baumert Report April 21, 2003
A Failure of Management: AMR Labor Relations (An Update)
From Robert Crandall''s administration to Donald Carty''s, AMR''s senior
management has regarded its employees as recalcitrant children rather than
valued professionals. They have perpetuated the idea that employees are a
liability rather than an asset; a necessary burden rather than a necessity
for success; an adversary to be fought rather than a respected partner in
business.
Indeed, the creation and the intentional concealment of the special trust
and bonuses are indicative of the low regard AMR management has for their
employees. It also speaks to the character of Don Carty and his senior
executives. AMR employees should not be left with any doubt now as to the
trustworthiness and integrity of their management.
In the 1960 book The Enemy Within Robert Kennedy wrote, Some otherwise
honest businessmen look on the relationship between labor and management as
a great power struggle in which ''anything goes''. In their anxiety to gain
the upper hand in this struggle they resort to unethical and dishonest
tactics on the mistaken theory that they must do this to win. It seems AMR
management still subscribes to this mistaken theory.
Yet, in any service industry a company''s most valuable resource is their
employees. They are the lifeblood of the business. It is obviously
counter-productive to manage these employees by means of deception and
intimidation. Indeed, such tactics are so flawed and disgraceful that the
management who adheres to them ensures their own competitive failure.
Ironically, shortly after becoming CEO, Mr. Carty actually vowed to change
AMR''s corporate culture and improve employee relations. Yet, his
disgraceful and inexcusable actions have forever undermined and corrupted
what little was left of labor relations and has alienated his entire
workforce.
Though he is still CEO, Carty has relinquished his role as leader of the
company. A leader requires qualities of honor, integrity, honesty and
setting the example for all. Carty evidently feels the required activity of
his job is lying. A few years ago, Mr. Carty had the impudence to complain
in the Wall St. Journal that AMR''s biggest problem was getting our
employees to believe we care about them. There''s no sense in his trying
anymore. His employees now know with certainty that he doesn''t care about
them.
Labor troubles at AMR will persist and recur as management perpetuates their
own mistakes and failures with employees. They would do well to remember
the words of Cicero, To be ignorant of the past is to remain a child. And
given those words, it''s clear who the recalcitrant children really are.
It is obvious AMR management does not deserve the trust and loyalty of its
employees. In fact, it is a reprehensible management that continues to take
measures of unrestrained greed and engage in a labor policy that
disenfranchises employees, workgroup by workgroup, individual by individual.
As AMR management continues to deceive, intimidate and demoralize, they
also continue to blatantly ignore the inherent benefits of high morale and
excellent labor relations. The result will be the long-term business
consequences of lost productivity, poor customer relations and the forfeit
of potential profits.
In conclusion, the opinions and judgments put forth here may seem harsh.
However, I assure you they pale in comparison to the treatment thousands of
employees have endured at the hands of AMR management.
Steven Baumert
A Failure of Management: AMR Labor Relations (An Update)
From Robert Crandall''s administration to Donald Carty''s, AMR''s senior
management has regarded its employees as recalcitrant children rather than
valued professionals. They have perpetuated the idea that employees are a
liability rather than an asset; a necessary burden rather than a necessity
for success; an adversary to be fought rather than a respected partner in
business.
Indeed, the creation and the intentional concealment of the special trust
and bonuses are indicative of the low regard AMR management has for their
employees. It also speaks to the character of Don Carty and his senior
executives. AMR employees should not be left with any doubt now as to the
trustworthiness and integrity of their management.
In the 1960 book The Enemy Within Robert Kennedy wrote, Some otherwise
honest businessmen look on the relationship between labor and management as
a great power struggle in which ''anything goes''. In their anxiety to gain
the upper hand in this struggle they resort to unethical and dishonest
tactics on the mistaken theory that they must do this to win. It seems AMR
management still subscribes to this mistaken theory.
Yet, in any service industry a company''s most valuable resource is their
employees. They are the lifeblood of the business. It is obviously
counter-productive to manage these employees by means of deception and
intimidation. Indeed, such tactics are so flawed and disgraceful that the
management who adheres to them ensures their own competitive failure.
Ironically, shortly after becoming CEO, Mr. Carty actually vowed to change
AMR''s corporate culture and improve employee relations. Yet, his
disgraceful and inexcusable actions have forever undermined and corrupted
what little was left of labor relations and has alienated his entire
workforce.
Though he is still CEO, Carty has relinquished his role as leader of the
company. A leader requires qualities of honor, integrity, honesty and
setting the example for all. Carty evidently feels the required activity of
his job is lying. A few years ago, Mr. Carty had the impudence to complain
in the Wall St. Journal that AMR''s biggest problem was getting our
employees to believe we care about them. There''s no sense in his trying
anymore. His employees now know with certainty that he doesn''t care about
them.
Labor troubles at AMR will persist and recur as management perpetuates their
own mistakes and failures with employees. They would do well to remember
the words of Cicero, To be ignorant of the past is to remain a child. And
given those words, it''s clear who the recalcitrant children really are.
It is obvious AMR management does not deserve the trust and loyalty of its
employees. In fact, it is a reprehensible management that continues to take
measures of unrestrained greed and engage in a labor policy that
disenfranchises employees, workgroup by workgroup, individual by individual.
As AMR management continues to deceive, intimidate and demoralize, they
also continue to blatantly ignore the inherent benefits of high morale and
excellent labor relations. The result will be the long-term business
consequences of lost productivity, poor customer relations and the forfeit
of potential profits.
In conclusion, the opinions and judgments put forth here may seem harsh.
However, I assure you they pale in comparison to the treatment thousands of
employees have endured at the hands of AMR management.
Steven Baumert