There is much to be said for websites that highlight the
problems of companies, they offer the business a real incentive to improve or
suffer growing humiliation and shrinking business as their story circulates
across the Web. However, the pilots at United have taken this one step further
by devoting a website to getting rid of United’s Chairman and CEO, Glenn
Tilton.
For the pilots, when they picture the problems facing their
once-great airline, it is Tilton’s face they see and Tilton’s head they would
like to see roll. In the six years he has been in United’s pilot seat, at a
comfortable $1.12 million per year, customer satisfaction with the airline has
gone into the toilet and as for employee satisfaction, that’s been flushed.
These are facts and according to the pilots, their causes have nothing to do
with the pressures that beset their industry:
United’s failures are
the result of a combination of management incompetence, short term decision
making, and self dealing in decisions about how to position United Airlines for
the future.
That is pretty strong stuff, a dismissal of oil prices,
competition, union demands and the like and a demand for personal
responsibility on the part of management, and it isn’t the end. The pilots want
your help to send Tilton and his cadre in United’s executive suite out to
pasture.
Tales from the
Failure-side
It is one thing to pen a caustic, rhetorical attack on a
CEO, which would be expected. In fact, you can find it right on the homepage.
What is different is that the creators of this site are offering you, the
flying public, the chance to pile on.
Broken up into categories, you can read news stories about
United’s myriad problems, horror stories from employees and passengers, and
dark tales of operational problems as well as strategic and financial issues.
What’s more, you can not only submit your own United Tale of Woe, you can
submit to the person the site says is responsible, Tilton himself. Consider this
post from Lisa, a flight attendant:
Never in my career at
United have I felt so undervalued as a human being and employee and sadly I am
one of many employees who feel the same. Yes, I could get another job, but mine
is unique and one I have grown to like very much. I choose to be confident in
United's future and a good start would be a new leader.
OK, this is one person. However, under the Strategy tab, we
read this:
What’s the best
defense against rising fuel prices? To Tilton’s management team at United, the
answer is a host of new charges and restrictions on travel, guaranteed to anger
travelers and place United at a competitive disadvantage.
Over the weekend of
April 19th, the airline introduced two new “Upgrades:”
-
A new $150
change fee for domestic itineraries, a 50% increase over the prior $100 fee.
-
New
Saturday night stay restrictions that apply to almost 65% of our markets, a
return to the “bad old days” of much higher fares for business travel.
Of course, the airline
blames the lack of operating earnings on fuel costs, and intends to recoup it
from you, their customers. Instead of boosting earnings, this decision will
simply boost business at low cost carriers and other airlines that have not
opted for draconian change fees and flight restrictions.
Of course, all of this
begs the larger question: What is this airline doing paying huge dividends to
shareholders, and offering gigantic bonuses to inexperienced executives who
make boneheaded decisions to cover bad management with higher fees and more
restrictions?
These are simply two of many possible examples that I could
site. The point is that the pilots want Tilton gone and they are not going to
rest until he and his executives are replaced. Why not? He presided over the
gutting of the employee pension fund and the bankruptcy of the company while
collecting multi-million dollar paychecks. Obviously, performance-based pay is
not something that the UAL Board is familiar with, unless Tilton is getting the
special CEO treatment. For example, would a manager at an airport, after
compiling such a stellar list of failure, be treated as well by the company?
Somehow, I think our manager’s parachute would not be so golden. In fact, I
think he’d be lucky to get unemployment. I also think that this is really at
the core of the pilot’s complaint.
They see a guy who makes self-serving decisions that have
brought a once-proud airline to the brink of ruin, a guy who many see as a
thief for gutting their pension plans, a guy who was brought in for his
executive experience (as opposed to actually knowing anything about running an
airline) and let the stock price fall by more than 70% since the company
emerged from bankruptcy. The fact that he not only got away with all of this
but is also paid millions of dollars is more than they could deal with.
Hence the drive to get rid of him, and the website.
The Bottom Line
Tilton’s story is a parable for all executives and business
owners, large and small. It is bad enough to have the company targeted by irate
employees or, worse, by angry customers. The PR and sales damage could be
incalculable. However, when the source of that anger assumes a name and a face—the
CEO, the president, the owner—then I have to wonder if things are now beyond
the point of repair. It’s personal now, and the target is demonized. Nothing
they might do in the future will change that feeling about them. The target can
fight to keep their position and in doing so risk tearing the organization
apart. When Richard Nixon faced impeachment, he understood this and resigned
for the good of the nation. He could have fought it, and he might have won, but
he thought of what was best the nation as opposed to what was best for himself.
Will Tilton feel the same way about United? We’ll have to see.
What is not so hard to foresee is that like company whistle
blowing sites, you will start to see more and more executives pilloried on the
Internet. The United Pilots opened the way with Glenn Tilton. I am looking
forward to seeing who will be next.
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