by Thomas Hinton
For several months, the Senate Finance Committee has labored to draft healthcare legislation. Its original intent was to help millions of uninsured Americans gain access to affordable healthcare. What began as a noble cause has deteriorated to the point where the proposed legislation looks more like a rescue bill for the health insurance industry than a lifeline for 36 million uninsured Americans.
For now, healthcare reform has become Senator Max Baucus' healthcare debacle. Senator Baucus, the Democratic Chairman of the Senate Finance Committee, claims to support universal healthcare as well as a public option for health insurance. However, he cannot seem to wiggle free from the chains of the health insurance lobby that has padded his campaign coffers with nearly $3 million in contributions. How can such a person make a rational decision and act without bias towards the best interest of our nation? The fact is he can't.
What confounds me is why this issue is so difficult. We are the richest nation in the world and yet, we are the only industrialized nation that does not provide its citizens universal healthcare coverage, let alone affordable access to the world's finest professional healthcare system. Yes, it costs money; and, yes, taxpayers must foot the bill. But, if the Congress does not act quickly and authorize a sensible long-term solution to our growing healthcare crisis, we will be saddled with trillions of dollars in healthcare costs that no one will be able to afford.
I believe the real healthcare question before us is an ethical question. Does the government of the United States of America have an ethical responsibility to all its citizens to provide them affordable access to healthcare? If the answer is yes -- and I believe it is -- then related issues such as how Americans access physicians, hospitals and clinics -- and whether the government creates a single-payer system or allows the current multi-payer system to remain in place -- are much easier to solve.
But, Senator Baucus and other Democratic senators cowered in the face of minority opposition. They voted down amendments to include the public option insurance program and, instead, endorsed a watered-down healthcare bill that will not meet the needs of the uninsured. His committee was asked to create a race horse and, instead, it created a camel! The proposed legislation will not solve the problem of rising healthcare costs. It only builds on the financial interests of greedy health insurance companies who already have veto power over medical insurance claims and the authority to deny treatment to thousands of Americans who desperately need medical attention and life-saving care.
If the Congress continues down its current path, the end result will be a significant defeat for the Democratic majority who have, thus far, squandered their electoral goodwill and grossly disappointed a significant majority of Americans who elected this Congress to bring about change. Part of the "change" covenant includes facing down the minority opposition that has crippled our nation economically during the previous eight years and standing up for those Americans whose voices have not been heard in years. Now is the time for the Democratic-controlled Congress to flex its muscle and have the courage to pass meaningful healthcare reform that insures the uninsured. Damn the opposition and full speed ahead! It's time the Congress did what's right!
About the Author. Thomas Hinton is president of the American Consumer Council and a frequent speaker at corporate and association meetings on business excellence topics. He can be reached at: tom@americanconsumercouncil.org
Thursday, October 1, 2009
Saturday, September 26, 2009
Reading the Tea Leaves: This Recession is Still Far from Over!
For the past month, I’ve been scanning newspapers, watching CNBC and other economic news stations and listening to radio talk show experts to find out how our economy is doing. To my surprise, Federal Reserve Chairman Ben Bernanke announced that the recession is all but over. However, in reading the economic tea leaves, I don’t think so. There's no such message in my fortune cookies!
The reasons I have serious doubts about this recession are simple. We still face four serious problems that will continue to stall a recovery until they are solved. First, many consumers are flat broke. They’ve spent their savings during the past two years and cannot afford to buy expensive items like cars and vacations. Secondly, the American economy is still bleeding jobs. Until companies start hiring en masse to replace the millions of jobs lost during the past three years, most consumers will not spend money. They’re afraid their job might be cut next. Thirdly, a staggering number of homeowners continue to struggle with their mortgage payments. Because of wage cuts, job losses and savings depletion, the threat of foreclosure remains serious for many American homeowners. Fourthly, the average American, who has healthcare insurance, is struggling to pay their healthcare premiums which continue to rise. Each day, thousands of Americans are being forced to make the painful decision to abandon their healthcare insurance because they can no longer afford it.
So, while I’m pleased that Mr. Bernanke thinks this recession is almost over, I disagree. I think it’s far from over. And, while I’m pleased Wall Street is making a strong comeback, that isn’t what’s going to revive and sustain the American economy. The ultimate antidote to nursing our economy back to health is consumer spending; and, that’s not going to happen until we solve the four problems I’ve noted.
About the Author:
Tom Hinton is president of the American Consumer Council. He is also a popular business author and speaker who writes frequently on consumer issues and business trends. He can be reached at tom@americanconsumercouncil.org
The reasons I have serious doubts about this recession are simple. We still face four serious problems that will continue to stall a recovery until they are solved. First, many consumers are flat broke. They’ve spent their savings during the past two years and cannot afford to buy expensive items like cars and vacations. Secondly, the American economy is still bleeding jobs. Until companies start hiring en masse to replace the millions of jobs lost during the past three years, most consumers will not spend money. They’re afraid their job might be cut next. Thirdly, a staggering number of homeowners continue to struggle with their mortgage payments. Because of wage cuts, job losses and savings depletion, the threat of foreclosure remains serious for many American homeowners. Fourthly, the average American, who has healthcare insurance, is struggling to pay their healthcare premiums which continue to rise. Each day, thousands of Americans are being forced to make the painful decision to abandon their healthcare insurance because they can no longer afford it.
So, while I’m pleased that Mr. Bernanke thinks this recession is almost over, I disagree. I think it’s far from over. And, while I’m pleased Wall Street is making a strong comeback, that isn’t what’s going to revive and sustain the American economy. The ultimate antidote to nursing our economy back to health is consumer spending; and, that’s not going to happen until we solve the four problems I’ve noted.
About the Author:
Tom Hinton is president of the American Consumer Council. He is also a popular business author and speaker who writes frequently on consumer issues and business trends. He can be reached at tom@americanconsumercouncil.org
Consumers Criticize Airlines' Deceptive Fees for Baggage, Seats and Pets
Thomas Hinton, president and CEO of the American Consumer Council (ACC), has sharply criticized ten domestic airlines for using deceptive pricing practices to take advantage of unsuspecting consumers who fly their airlines. According to the Department of Transportation's Bureau of Transportation Statistics, a recent report shows that domestic airlines collected $3.8 billion in non-ticket fees for checking bags, the cancellation and re-booking of flights, carrying pets aboard planes and assigning seats.
The ten domestic airlines that Hinton criticized during CNBC's Power Lunch program included: American, Delta, U.S. Airways, United, Northwest, Continental, AirTran, Spirit, Frontier and JetBlue. Hinton said the ten airlines collected more than $669 million dollars in baggage fee revenues alone during the 2nd quarter of 2009. Hinton claimed that "many of those baggage fees were collected from unsuspecting travelers and who were unfairly charged."
On CNBC's Power Lunch program, Hinton also stated, "These types of a la carte pricing practices are unfair, deceptive and should be stopped by the airlines or, if necessary, a class action lawsuit."
Hinton explained that most travelers assume when they purchase an airline ticket, it entitles them to receive an assigned seat, check a piece of luggage and receive a snack and beverage aboard their flight. Hinton added, "These ten airlines should be upfront and truthful with consumers by including these traditional items in the cost of a ticket. To do otherwise, is viewed as deceptive and under-handed."
Hinton also questioned the credibility of the airlines industry because of recent problems with extended flight delays, an increase in the number of lost bags and the mishandling of luggage. Hinton referenced the "United Breaks Guitars" You Tube video by musician Dave Carroll, a United Airline passenger, whose expensive guitar was tossed around like a football on the tarmac of Chicago's O'Hare Airport by United Airline baggage handlers. United Airlines denied responsibility for nine months until the popularity of the You Tube video forced the airline to make amends.
Giving credit where it was due, Hinton did praise Southwest Airlines as the only major domestic airline that practices ethical and fair pricing because they do not charge under-the-table fees or service charges for baggage, pets, or in-flight meals.
Hinton noted that unsuspecting travelers must often pay an extra $50 - $100 per flight as a result of the service charges and fees issued by airlines. He called on consumers to express their displeasure with the ten domestic airlines that are "manipulating ticket prices by using under-the-table fees and service charges to boost the true cost of travel" Hinton encouraged CNBC viewers to "tell the airlines you don't like their deceptive and unfair pricing tactics."
Hinton also renewed his call on Congress to pass the Airline Passengers' Bill of Rights claiming, "Nothing has been done by the airline industry during the past year to improve customer service, treat consumers fairly or instill ethical pricing tactics so the real cost of travel is transparent."
The ten domestic airlines that Hinton criticized during CNBC's Power Lunch program included: American, Delta, U.S. Airways, United, Northwest, Continental, AirTran, Spirit, Frontier and JetBlue. Hinton said the ten airlines collected more than $669 million dollars in baggage fee revenues alone during the 2nd quarter of 2009. Hinton claimed that "many of those baggage fees were collected from unsuspecting travelers and who were unfairly charged."
On CNBC's Power Lunch program, Hinton also stated, "These types of a la carte pricing practices are unfair, deceptive and should be stopped by the airlines or, if necessary, a class action lawsuit."
Hinton explained that most travelers assume when they purchase an airline ticket, it entitles them to receive an assigned seat, check a piece of luggage and receive a snack and beverage aboard their flight. Hinton added, "These ten airlines should be upfront and truthful with consumers by including these traditional items in the cost of a ticket. To do otherwise, is viewed as deceptive and under-handed."
Hinton also questioned the credibility of the airlines industry because of recent problems with extended flight delays, an increase in the number of lost bags and the mishandling of luggage. Hinton referenced the "United Breaks Guitars" You Tube video by musician Dave Carroll, a United Airline passenger, whose expensive guitar was tossed around like a football on the tarmac of Chicago's O'Hare Airport by United Airline baggage handlers. United Airlines denied responsibility for nine months until the popularity of the You Tube video forced the airline to make amends.
Giving credit where it was due, Hinton did praise Southwest Airlines as the only major domestic airline that practices ethical and fair pricing because they do not charge under-the-table fees or service charges for baggage, pets, or in-flight meals.
Hinton noted that unsuspecting travelers must often pay an extra $50 - $100 per flight as a result of the service charges and fees issued by airlines. He called on consumers to express their displeasure with the ten domestic airlines that are "manipulating ticket prices by using under-the-table fees and service charges to boost the true cost of travel" Hinton encouraged CNBC viewers to "tell the airlines you don't like their deceptive and unfair pricing tactics."
Hinton also renewed his call on Congress to pass the Airline Passengers' Bill of Rights claiming, "Nothing has been done by the airline industry during the past year to improve customer service, treat consumers fairly or instill ethical pricing tactics so the real cost of travel is transparent."
Monday, September 7, 2009
The Mood of American Consumers Remains Cautious: An Interview with ACC President Thomas Hinton
The following interview on the mood of American consumers was conducted on September 7, 2009 with Thomas Hinton, President & CEO of the American Consumer Council, by Consumer News & Views.
CNV. Most economic data suggest that the United States remains in a deep recession. What is the mood of American consumers and when do you predict the economy will turn around?
Hinton. There's no question the United States remains in a serious recession. Consumers are still hurting. We are still losing jobs and small businesses are reluctant to hire people until they see stronger signals that the worst is over.
CNV. Do you think the worst is over in terms of the recession?
Hinton. That's a tough question because companies are still laying-off thousands of employees and consumer confidence remains low. I'm also troubled by the number of home foreclosures and bankruptcies. Those numbers are too high and that's not a good sign for a recovery to begin.
I just returned from Europe and Scandinavia and it's apparent that America's economic woes are having a negative impact on many countries around the world. As long as American consumers refrain from spending and traveling, the global economy will suffer. As far as predicting a turn-around, I think three things need to happen. First, the federal government's stimulus plan needs to take root and federal agencies need to start pumping money into state and local coffers. Secondly, we need to reverse the job losses by generating millions of new jobs. Frankly, this is President Obama's biggest challenge because without job creation, consumers are not going to spend money they don't have and the economy will remain stalled. Thirdly, we need to correct some fundamental flaws in how we do business in this country to ensure we don't repeat the same economic mistakes again. I'm talking about strengthening federal regulations that prevent large companies and Wall Street from holding our nation hostage, economically speaking. Most consumers resent the federal bail-out of Wall Street companies and the billions of dollars taxpayers had to spend to set things right. Also, it's time Congress got serious about passing legislation that protects consumers in the critical areas of health care coverage, environmental protection, airline delays, credit card fees, foreclosures, student loans, and identity theft. Frankly, all eyes are on Speaker of the House Nancy Pelosi and her Democratic majority to see if Congress delivers. If Congress doesn't deliver, I think Speaker Pelosi will have squandered a once-in-a-lifetime opportunity to do great things for American consumers and the nation.
CNV. Do you see any consensus among consumers on the issue of health care reform?
Hinton. There's certainly consensus among the 40 million plus consumers who either have no health insurance or are under-insured. I think the entire health care debate really boils down to three key questions. First, should every American have access to quality health care? If the answer to this question is yes -- and I believe yes is the right answer -- then the second question we must ask is: What system should we create that ensures every American has access to quality health care? And, thirdly, how will we pay for it?
The current national debate is all wrong. Our leaders should be focusing on America's moral obligation to its citizens to ensure every American has access to health care. Until we have agreement on America's moral obligation to provide health care to every citizen, we will not arrive at the proper solution.
TR Reid, a respected journalist, has written a great book entitled The Healing of America. Mr. Reid studied the various health care systems of many countries and found that the United States is the only developed nation that does not provide universal health care to its citizens. Why is that? It makes no sense that the richest nation in the world has not made the moral commitment to ensure its citizens receive the finest health care in the world. It is generally acknowledged that America has the finest health care professionals, hospitals, and research facilities in the world. But, unless you have health insurance, you cannot access our doctors, hospitals, or research facilities. Frankly, it's an embarrassment to our country.
Opponents claim a universal health care system will create socialized medicine -- whatever that means -- or eliminate a person's freedom to choose their own doctor or hospital for treatment. That's pure nonsense. These statements are nothing more than a scare tactic on the part of the special interests who don't want Americans to have open access to health care -- plain and simple. It appears this deceitful misinformation campaign on health care is being funded largely by a few health insurance companies that stand to lose billions of dollars in sky-high health insurance premiums if Congress adopts a single-payer system. The reality, however, is unless we change the current system -- and, specifically, how we pay for health care -- we will be bankrupt within 25 years because we cannot keep pace with the ballooning costs of health care. So, a meaningful solution must be found soon. That is the reality regardless of one's political views or special interest.
I would encourage consumers to read The Healing of America to gain an objective understanding on the various health care options that are working in other countries. I also think we need to stop protecting the "sacred cows" of health care -- like the health insurance companies -- that are controlling life-and-death decisions such as who can be treated and which treatment patients can receive, how much money doctors and hospitals get paid for a procedure, and which pill you can take to get well. It's not the federal government consumers should be afraid of when it comes to health care. It's the health insurance companies we should fear because they are the ones who are making life-and-death decisions for patients. It just doesn't make any sense. There are better options for American consumers.
CNV. Where will the new jobs come from?
Hinton. I mentioned earlier that America needs to rethink how we do business. But, we also need to reinvent our business growth model if we expect to remain the number one global economic power. I can assure you that China, India and other countries are not sitting idle.
I think the long-term answer for job growth in the United States will be found in three key areas: Green, Information Technology, and Knowledge Management. Certainly, bio-sciences, health care, education, defense, entertainment, agriculture and smaller specialty industries such as space exploration and scientific research will support America's economic growth over the next 25 years, but we need to recognize as a nation that we have entered a new economic era and begin to train a new generation to fill the jobs that will be created in these growth industries.
We also need to retrain the millions of Americans who have lost their jobs, and give them new skills and a renewed sense of economic hope. The unemployed are good, decent people who are trapped in an economic downturn not of their making or choosing. So, we owe it to them to provide the necessary training and education to put them back to work.
CNV. Are you optimistic for consumers in 2010?
Hinton. I think the short answer is yes, I am cautiously optimistic for 2010. But, my optimism for 2010 depend on a few key issues. First, I think consumers need to see measurable progress in Washington on the major issues we've discussed in this interview. Secondly, I think President Obama is on the right track and he needs to press ahead and get Congress to adopt his proposals and quickly implement his plan. This probably means that some regressive members of Congress will be left behind, but that's politics. The sooner Congress and the president act, the sooner we will see a meaningful recovery. If Congress lacks the political courage and will to act, all bets are off. 2010 could be another dismal year. If that happens, I'm concerned that China will pull ahead of the United States and become the dominant economic force for the next 20 years because they have the resources and economic capacity to beat us. So, the political and economic stakes are very high.
In terms of consumer confidence, it's beginning to inch upwards because -- despite the naysayers and political commentators -- most consumers think Mr. Obama is on the right track and he is addressing the tough issues that need to be resolved in order to create long-term economic growth.
If there is a silver lining to our current economic crisis, it is this. Out of adversity comes opportunity. One of America's greatest strengths is good old Yankee ingenuity. Americans have a tremendous innovative spirit as well as the ability to take an idea to market quickly and cheaply. So, new ideas for products and services will flood the marketplace as soon as the economy recovers. There is certainly pent-up demand among consumers to buy new cars, clothes, electronic goods and other staples that drive our economy. But, until we see job growth and a spirit of cooperation in Washington, I think consumers will sit on the sidelines with their hands on their wallets and purses and not spend money. And, every day consumers sit on the sidelines is another day we postpone the recovery.
CNV. Most economic data suggest that the United States remains in a deep recession. What is the mood of American consumers and when do you predict the economy will turn around?
Hinton. There's no question the United States remains in a serious recession. Consumers are still hurting. We are still losing jobs and small businesses are reluctant to hire people until they see stronger signals that the worst is over.
CNV. Do you think the worst is over in terms of the recession?
Hinton. That's a tough question because companies are still laying-off thousands of employees and consumer confidence remains low. I'm also troubled by the number of home foreclosures and bankruptcies. Those numbers are too high and that's not a good sign for a recovery to begin.
I just returned from Europe and Scandinavia and it's apparent that America's economic woes are having a negative impact on many countries around the world. As long as American consumers refrain from spending and traveling, the global economy will suffer. As far as predicting a turn-around, I think three things need to happen. First, the federal government's stimulus plan needs to take root and federal agencies need to start pumping money into state and local coffers. Secondly, we need to reverse the job losses by generating millions of new jobs. Frankly, this is President Obama's biggest challenge because without job creation, consumers are not going to spend money they don't have and the economy will remain stalled. Thirdly, we need to correct some fundamental flaws in how we do business in this country to ensure we don't repeat the same economic mistakes again. I'm talking about strengthening federal regulations that prevent large companies and Wall Street from holding our nation hostage, economically speaking. Most consumers resent the federal bail-out of Wall Street companies and the billions of dollars taxpayers had to spend to set things right. Also, it's time Congress got serious about passing legislation that protects consumers in the critical areas of health care coverage, environmental protection, airline delays, credit card fees, foreclosures, student loans, and identity theft. Frankly, all eyes are on Speaker of the House Nancy Pelosi and her Democratic majority to see if Congress delivers. If Congress doesn't deliver, I think Speaker Pelosi will have squandered a once-in-a-lifetime opportunity to do great things for American consumers and the nation.
CNV. Do you see any consensus among consumers on the issue of health care reform?
Hinton. There's certainly consensus among the 40 million plus consumers who either have no health insurance or are under-insured. I think the entire health care debate really boils down to three key questions. First, should every American have access to quality health care? If the answer to this question is yes -- and I believe yes is the right answer -- then the second question we must ask is: What system should we create that ensures every American has access to quality health care? And, thirdly, how will we pay for it?
The current national debate is all wrong. Our leaders should be focusing on America's moral obligation to its citizens to ensure every American has access to health care. Until we have agreement on America's moral obligation to provide health care to every citizen, we will not arrive at the proper solution.
TR Reid, a respected journalist, has written a great book entitled The Healing of America. Mr. Reid studied the various health care systems of many countries and found that the United States is the only developed nation that does not provide universal health care to its citizens. Why is that? It makes no sense that the richest nation in the world has not made the moral commitment to ensure its citizens receive the finest health care in the world. It is generally acknowledged that America has the finest health care professionals, hospitals, and research facilities in the world. But, unless you have health insurance, you cannot access our doctors, hospitals, or research facilities. Frankly, it's an embarrassment to our country.
Opponents claim a universal health care system will create socialized medicine -- whatever that means -- or eliminate a person's freedom to choose their own doctor or hospital for treatment. That's pure nonsense. These statements are nothing more than a scare tactic on the part of the special interests who don't want Americans to have open access to health care -- plain and simple. It appears this deceitful misinformation campaign on health care is being funded largely by a few health insurance companies that stand to lose billions of dollars in sky-high health insurance premiums if Congress adopts a single-payer system. The reality, however, is unless we change the current system -- and, specifically, how we pay for health care -- we will be bankrupt within 25 years because we cannot keep pace with the ballooning costs of health care. So, a meaningful solution must be found soon. That is the reality regardless of one's political views or special interest.
I would encourage consumers to read The Healing of America to gain an objective understanding on the various health care options that are working in other countries. I also think we need to stop protecting the "sacred cows" of health care -- like the health insurance companies -- that are controlling life-and-death decisions such as who can be treated and which treatment patients can receive, how much money doctors and hospitals get paid for a procedure, and which pill you can take to get well. It's not the federal government consumers should be afraid of when it comes to health care. It's the health insurance companies we should fear because they are the ones who are making life-and-death decisions for patients. It just doesn't make any sense. There are better options for American consumers.
CNV. Where will the new jobs come from?
Hinton. I mentioned earlier that America needs to rethink how we do business. But, we also need to reinvent our business growth model if we expect to remain the number one global economic power. I can assure you that China, India and other countries are not sitting idle.
I think the long-term answer for job growth in the United States will be found in three key areas: Green, Information Technology, and Knowledge Management. Certainly, bio-sciences, health care, education, defense, entertainment, agriculture and smaller specialty industries such as space exploration and scientific research will support America's economic growth over the next 25 years, but we need to recognize as a nation that we have entered a new economic era and begin to train a new generation to fill the jobs that will be created in these growth industries.
We also need to retrain the millions of Americans who have lost their jobs, and give them new skills and a renewed sense of economic hope. The unemployed are good, decent people who are trapped in an economic downturn not of their making or choosing. So, we owe it to them to provide the necessary training and education to put them back to work.
CNV. Are you optimistic for consumers in 2010?
Hinton. I think the short answer is yes, I am cautiously optimistic for 2010. But, my optimism for 2010 depend on a few key issues. First, I think consumers need to see measurable progress in Washington on the major issues we've discussed in this interview. Secondly, I think President Obama is on the right track and he needs to press ahead and get Congress to adopt his proposals and quickly implement his plan. This probably means that some regressive members of Congress will be left behind, but that's politics. The sooner Congress and the president act, the sooner we will see a meaningful recovery. If Congress lacks the political courage and will to act, all bets are off. 2010 could be another dismal year. If that happens, I'm concerned that China will pull ahead of the United States and become the dominant economic force for the next 20 years because they have the resources and economic capacity to beat us. So, the political and economic stakes are very high.
In terms of consumer confidence, it's beginning to inch upwards because -- despite the naysayers and political commentators -- most consumers think Mr. Obama is on the right track and he is addressing the tough issues that need to be resolved in order to create long-term economic growth.
If there is a silver lining to our current economic crisis, it is this. Out of adversity comes opportunity. One of America's greatest strengths is good old Yankee ingenuity. Americans have a tremendous innovative spirit as well as the ability to take an idea to market quickly and cheaply. So, new ideas for products and services will flood the marketplace as soon as the economy recovers. There is certainly pent-up demand among consumers to buy new cars, clothes, electronic goods and other staples that drive our economy. But, until we see job growth and a spirit of cooperation in Washington, I think consumers will sit on the sidelines with their hands on their wallets and purses and not spend money. And, every day consumers sit on the sidelines is another day we postpone the recovery.
Tuesday, August 11, 2009
Common Sense is Not Common
by Tom Hinton
In his classic book, A World Waiting To Be Born: Civility Rediscovered, the late author Dr. M. Scott Peck, noted that today’s society suffers a serious and disruptive illness -- incivility. Dr. Peck believed our destructive patterns of self-absorption, callousness, manipulativeness, and materialism are so ingrained in our routine behavior that we cannot recognize them. Like Dr. Peck, I believe incivility is fatal to companies, government agencies and politicians who treat people with contempt or indifference.
During the past few weeks, there have been numerous cases of incivility that cause me to wonder how people in important positions can act so callously or dim-witted? Regrettably, the examples of incivility range from President Obama labeling the Cambridge Police Department as “acting stupidly” to sports and, not surprisingly, the whipping boy of consumer dissatisfaction -- the airlines industry.
Unfortunately, for President Obama, his choice of words was less than presidential. To label the Cambridge Police Department for “acting stupidly” before Mr. Obama had all the facts left him open to criticism and derailed his health care reform efforts while his critics crowded the airwaves dissecting his ill-chosen comments. It took a few beers and photos at the White House with Sgt. Crowley and Professor Gates, Jr. to clear the air and get the president out of the Cambridge dog house. It was a tough lesson for Mr. Obama on civility and choosing one’s words more carefully.
Next, consider the bonehead decision by the management of Continental Express to allow 47 passengers to sit for six hours on a deserted tarmac after flying from Houston to Minneapolis -- only to be diverted to Rochester some 90 miles away. After nine hours, the all-night camp-out on Continental Express Flight 2816 took on the smell of soiled baby diapers and a backed-up toilet that was over-used by the stranded passengers in the regional jet. You would think that after JetBlue committed a similar blunder two years ago -- stranding thousands of passengers on planes that sat within spitting distance of the JFK terminal -- that Continental Express would not make the same dumb mistake. What should have been a 2 1/2-hour trip from Houston to Minneapolis became a nightmare for those 47 passengers. It also provides us with a new definition for incivility. After all, what civil-minded person would confine 47 passengers in a foul-smelling airplane without ample food and water for nine hours? It borders on torture let alone stupidity.
But, common sense is not common in the airline industry. Just ask, United Airlines which continues to suffer stock losses and the disdain of consumers who watched guitarist Dave Carroll’s YouTube video saga entitled, United Breaks Guitars. Passengers sitting aboard a plane in Chicago witnessed UAL baggage handlers tossing Carroll’s guitar like a football. When Carroll retrieved his expensive Taylor guitar at his destination, he found it had been broken. Carroll’s efforts to have United Airlines fix his instrument fell on deaf ears for 9 months. So, Carroll wrote the widely popular song, United Breaks Guitars, which has been viewed by 4 million people. Is it simply a coincidence that many stock analysts believe the Mr. Carroll’s United Breaks Guitars sage has cost UAL millions in stock losses? If so, that’s an expensive lesson in civility and disdain for your customers!
Another example of incivility concerns Tiger Woods, who was fined by the PGA Tour for his public criticism of a rules official after winning last week’s Bridgestone Invitational in Akron, Ohio. In this example of incivility and a lack of common sense, Tiger is being unfairly punished by the PGA for criticizing the referee, John Paramour, who told Woods and Padraig Harrington they were being “put on the clock” for slow play at a critical time in the final round of the tournament. At the time, Harrington clung to a slim one-shot lead at the par-5 16th hole. The comment by Mr. Paramour rattled Harrington. Tiger Woods said afterwards said the intrusion by Paramour caused Harrington to rush three difficult shots that led to his devastating triple bogey on the 6th hole. Harrington never recovered and Woods went on to win the tournament by four shots. Woods said he told Harrington after it was over, “I’m sorry that John [Paramour] got in the way of a great battle.” This is why the PGA fined Woods.
While Woods and Harrington lagged behind the players in front of them, their pace seemed steady for a competitive two-man duel. While the PGA will argue that Paramour was within his right to put Woods and Harrington “on the clock,” his timing was terrible and, thus, lacked civility. Even well-intentioned people make bonehead plays that confound common sense.
Finally, I’m sure Dr. Peck would be troubled -- as I am -- by the recent incivility at the various congressional town hall meetings as the merits of a proposed health care reform plan are debated. Certainly, such a sweeping proposal will draw many different ideas, comments and opposing viewpoints. But, in watching the news coverage of these town hall meetings, it is both disgraceful and undignified how so many Americans are conducting themselves. Whatever happened to civil discourse and allowing one person to voice their opinion before an opposing thought is expressed? Instead, I see angry old men yelling and screaming at women and children. For what? If this is political theatre, shame of those who would defame America’s prized ritual of debate. Is this the image of American society we want to project to the world that is watching America discuss health care reform? This is how we earned the distasteful label, “Ugly American.”
It should come as no surprise that many of our children hold politics, politicians, and various television news commentary programs in contempt. In their minds, our generation is not a role model for civility. We are a generation that represents everything negative, spiteful and perverse in American society. We lack common sense, self-respect, and a sense of decency and fairness not only for ourselves but for other nations as well. We have, as Dr. Peck feared, become a discredited society that is self-absorbed, callous, manipulative, and completely consumed with material things.
Can it be that we have become a nation without feelings and emotions? As one college student remarked to me last week, “America has lost its soul. I’m disgusted with all of you.” Frankly, she’s right… I’m disgusted with all of you, too!
About the Author: Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization which administers ACC’s Green C™ Certification Program. He can be reached at tom@americanconsumercouncil.org
In his classic book, A World Waiting To Be Born: Civility Rediscovered, the late author Dr. M. Scott Peck, noted that today’s society suffers a serious and disruptive illness -- incivility. Dr. Peck believed our destructive patterns of self-absorption, callousness, manipulativeness, and materialism are so ingrained in our routine behavior that we cannot recognize them. Like Dr. Peck, I believe incivility is fatal to companies, government agencies and politicians who treat people with contempt or indifference.
During the past few weeks, there have been numerous cases of incivility that cause me to wonder how people in important positions can act so callously or dim-witted? Regrettably, the examples of incivility range from President Obama labeling the Cambridge Police Department as “acting stupidly” to sports and, not surprisingly, the whipping boy of consumer dissatisfaction -- the airlines industry.
Unfortunately, for President Obama, his choice of words was less than presidential. To label the Cambridge Police Department for “acting stupidly” before Mr. Obama had all the facts left him open to criticism and derailed his health care reform efforts while his critics crowded the airwaves dissecting his ill-chosen comments. It took a few beers and photos at the White House with Sgt. Crowley and Professor Gates, Jr. to clear the air and get the president out of the Cambridge dog house. It was a tough lesson for Mr. Obama on civility and choosing one’s words more carefully.
Next, consider the bonehead decision by the management of Continental Express to allow 47 passengers to sit for six hours on a deserted tarmac after flying from Houston to Minneapolis -- only to be diverted to Rochester some 90 miles away. After nine hours, the all-night camp-out on Continental Express Flight 2816 took on the smell of soiled baby diapers and a backed-up toilet that was over-used by the stranded passengers in the regional jet. You would think that after JetBlue committed a similar blunder two years ago -- stranding thousands of passengers on planes that sat within spitting distance of the JFK terminal -- that Continental Express would not make the same dumb mistake. What should have been a 2 1/2-hour trip from Houston to Minneapolis became a nightmare for those 47 passengers. It also provides us with a new definition for incivility. After all, what civil-minded person would confine 47 passengers in a foul-smelling airplane without ample food and water for nine hours? It borders on torture let alone stupidity.
But, common sense is not common in the airline industry. Just ask, United Airlines which continues to suffer stock losses and the disdain of consumers who watched guitarist Dave Carroll’s YouTube video saga entitled, United Breaks Guitars. Passengers sitting aboard a plane in Chicago witnessed UAL baggage handlers tossing Carroll’s guitar like a football. When Carroll retrieved his expensive Taylor guitar at his destination, he found it had been broken. Carroll’s efforts to have United Airlines fix his instrument fell on deaf ears for 9 months. So, Carroll wrote the widely popular song, United Breaks Guitars, which has been viewed by 4 million people. Is it simply a coincidence that many stock analysts believe the Mr. Carroll’s United Breaks Guitars sage has cost UAL millions in stock losses? If so, that’s an expensive lesson in civility and disdain for your customers!
Another example of incivility concerns Tiger Woods, who was fined by the PGA Tour for his public criticism of a rules official after winning last week’s Bridgestone Invitational in Akron, Ohio. In this example of incivility and a lack of common sense, Tiger is being unfairly punished by the PGA for criticizing the referee, John Paramour, who told Woods and Padraig Harrington they were being “put on the clock” for slow play at a critical time in the final round of the tournament. At the time, Harrington clung to a slim one-shot lead at the par-5 16th hole. The comment by Mr. Paramour rattled Harrington. Tiger Woods said afterwards said the intrusion by Paramour caused Harrington to rush three difficult shots that led to his devastating triple bogey on the 6th hole. Harrington never recovered and Woods went on to win the tournament by four shots. Woods said he told Harrington after it was over, “I’m sorry that John [Paramour] got in the way of a great battle.” This is why the PGA fined Woods.
While Woods and Harrington lagged behind the players in front of them, their pace seemed steady for a competitive two-man duel. While the PGA will argue that Paramour was within his right to put Woods and Harrington “on the clock,” his timing was terrible and, thus, lacked civility. Even well-intentioned people make bonehead plays that confound common sense.
Finally, I’m sure Dr. Peck would be troubled -- as I am -- by the recent incivility at the various congressional town hall meetings as the merits of a proposed health care reform plan are debated. Certainly, such a sweeping proposal will draw many different ideas, comments and opposing viewpoints. But, in watching the news coverage of these town hall meetings, it is both disgraceful and undignified how so many Americans are conducting themselves. Whatever happened to civil discourse and allowing one person to voice their opinion before an opposing thought is expressed? Instead, I see angry old men yelling and screaming at women and children. For what? If this is political theatre, shame of those who would defame America’s prized ritual of debate. Is this the image of American society we want to project to the world that is watching America discuss health care reform? This is how we earned the distasteful label, “Ugly American.”
It should come as no surprise that many of our children hold politics, politicians, and various television news commentary programs in contempt. In their minds, our generation is not a role model for civility. We are a generation that represents everything negative, spiteful and perverse in American society. We lack common sense, self-respect, and a sense of decency and fairness not only for ourselves but for other nations as well. We have, as Dr. Peck feared, become a discredited society that is self-absorbed, callous, manipulative, and completely consumed with material things.
Can it be that we have become a nation without feelings and emotions? As one college student remarked to me last week, “America has lost its soul. I’m disgusted with all of you.” Frankly, she’s right… I’m disgusted with all of you, too!
About the Author: Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization which administers ACC’s Green C™ Certification Program. He can be reached at tom@americanconsumercouncil.org
Thursday, August 6, 2009
Free Doesn't Always Mean Free
by Bill Kalmar
Our cable provider, AT&T, just offered us one month of free service for Encore and Showtime. Two months ago, we took the free HBO offer for two months. After two months of “Caddy Shack” and “Willy Wonka & the Chocolate Factory” reruns, we decided to cancel. Now after just two days of Showtime we are ready to cancel again. What pushed us over the top was a rerun of “How the Grinch Stole Christmas”... in July. So come tomorrow we will return to our regular programming. Frankly, we don’t need 300 channels anyway.
What I learned from previous experiences with cable companies is that if you fail to cancel within the allotted time of your free subscription, your account will be charged and it may be difficult to obtain a refund. In the case of AT&T, I canceled the HBO subscription within a week of the free deadline, however, our statement recycled prior to that date and thus we were charged a monthly fee. It was easily reversed but I think it points out that many companies are in a financial bind and may look for unusual ways to increase their cash flow.
One case in point is our health care provider. Our payments have been due the first of the month since my retirement in 2003. Then on July 16th we received a notice that our payments are now due the 25th of each month starting with the July payment—a nine-day window for payment. This was done unilaterally without notice to subscribers. I have written to senior management concerning this and hope to receive a response before my next column.
I pointed out to management that before decisions are made the question should be raised: “How will this affect our customers?” This is a basic quality concept that is often overlooked and one that generally results in adverse reaction from customers when ignored. What makes this decision so impractical is that our prescription coverage from the same company is still due on the first of the month.
It seems companies that have reduced their staffs are having difficulty with quality control. I wonder if anyone has weighed the cost of replacing defective merchandise with the cost of having an experienced staff on board who verifies the quality and proper response to orders. I would bet that having trained staff costs less than all the miscues that are occurring.
We just unpacked a ceiling fan for installation in our family room and as luck would have it, two of the light fixtures were shattered. A call to the fan company had replacements sent to us but when the new lights arrived, the wrong ones were in the package. Another call to a different rep caught the error and new lights are on the way. I’ll let you know if the second time is the charm, but normally it takes three times, doesn’t it? Also, a sports chair we ordered has a rip in the fabric, so back it goes.
Have you seen that some of the bailed-out companies are now prepared to pay extravagant bonuses to staff members? Senior management reconciles this idiotic practice as a way to “prevent talented people from leaving the organization.” If these people were so talented, why was the company in financial trouble? I say, prohibit bonuses and let these people leave. Then let them find a job, especially in Michigan where unemployment is at 15 percent and rising. When these so-called brain-trusts leave there will be thousands of qualified people seeking those positions.
Speaking of people leaving, here is where some of you will be counting me for sure among those dining on loco weed—but understand that I'm immune to criticism and am bullet proof. Just as in the business world where CEOs are obliged to retire at a predetermined age, most likely at 65 years of age, the same should be done in the political world. Do I really want some senator or representative in his or her 80s or 90s making decisions that will effect me or my children and grandchildren? Absolutely not!
It's time for these dinosaurs to pack up their orthopedic underwear and hit the road; and I say that as a senior citizen myself.
Now go ahead, write me, and tell me that I am discriminating against the aged. Candidly, anyone who is making laws in their 80s and 90s is discriminating against me, because he or she no longer identifies with reality and the world I'm living in.
Speaking of senior citizens, how about the run 59-year-old Tom Watson just made at the British Open? He forced a playoff after leading most of the time in the four-day event and then lost on the final playoff hole. But he provided loads of excitement and certainly outplayed many younger players. Maybe some of our octogenarian senators could caddy for him.
Well, time to give cable TV another try. They're showing “The Maltese Falcon” with Humphrey Bogart. Now that’s real moviemaking
Our cable provider, AT&T, just offered us one month of free service for Encore and Showtime. Two months ago, we took the free HBO offer for two months. After two months of “Caddy Shack” and “Willy Wonka & the Chocolate Factory” reruns, we decided to cancel. Now after just two days of Showtime we are ready to cancel again. What pushed us over the top was a rerun of “How the Grinch Stole Christmas”... in July. So come tomorrow we will return to our regular programming. Frankly, we don’t need 300 channels anyway.
What I learned from previous experiences with cable companies is that if you fail to cancel within the allotted time of your free subscription, your account will be charged and it may be difficult to obtain a refund. In the case of AT&T, I canceled the HBO subscription within a week of the free deadline, however, our statement recycled prior to that date and thus we were charged a monthly fee. It was easily reversed but I think it points out that many companies are in a financial bind and may look for unusual ways to increase their cash flow.
One case in point is our health care provider. Our payments have been due the first of the month since my retirement in 2003. Then on July 16th we received a notice that our payments are now due the 25th of each month starting with the July payment—a nine-day window for payment. This was done unilaterally without notice to subscribers. I have written to senior management concerning this and hope to receive a response before my next column.
I pointed out to management that before decisions are made the question should be raised: “How will this affect our customers?” This is a basic quality concept that is often overlooked and one that generally results in adverse reaction from customers when ignored. What makes this decision so impractical is that our prescription coverage from the same company is still due on the first of the month.
It seems companies that have reduced their staffs are having difficulty with quality control. I wonder if anyone has weighed the cost of replacing defective merchandise with the cost of having an experienced staff on board who verifies the quality and proper response to orders. I would bet that having trained staff costs less than all the miscues that are occurring.
We just unpacked a ceiling fan for installation in our family room and as luck would have it, two of the light fixtures were shattered. A call to the fan company had replacements sent to us but when the new lights arrived, the wrong ones were in the package. Another call to a different rep caught the error and new lights are on the way. I’ll let you know if the second time is the charm, but normally it takes three times, doesn’t it? Also, a sports chair we ordered has a rip in the fabric, so back it goes.
Have you seen that some of the bailed-out companies are now prepared to pay extravagant bonuses to staff members? Senior management reconciles this idiotic practice as a way to “prevent talented people from leaving the organization.” If these people were so talented, why was the company in financial trouble? I say, prohibit bonuses and let these people leave. Then let them find a job, especially in Michigan where unemployment is at 15 percent and rising. When these so-called brain-trusts leave there will be thousands of qualified people seeking those positions.
Speaking of people leaving, here is where some of you will be counting me for sure among those dining on loco weed—but understand that I'm immune to criticism and am bullet proof. Just as in the business world where CEOs are obliged to retire at a predetermined age, most likely at 65 years of age, the same should be done in the political world. Do I really want some senator or representative in his or her 80s or 90s making decisions that will effect me or my children and grandchildren? Absolutely not!
It's time for these dinosaurs to pack up their orthopedic underwear and hit the road; and I say that as a senior citizen myself.
Now go ahead, write me, and tell me that I am discriminating against the aged. Candidly, anyone who is making laws in their 80s and 90s is discriminating against me, because he or she no longer identifies with reality and the world I'm living in.
Speaking of senior citizens, how about the run 59-year-old Tom Watson just made at the British Open? He forced a playoff after leading most of the time in the four-day event and then lost on the final playoff hole. But he provided loads of excitement and certainly outplayed many younger players. Maybe some of our octogenarian senators could caddy for him.
Well, time to give cable TV another try. They're showing “The Maltese Falcon” with Humphrey Bogart. Now that’s real moviemaking
Wednesday, July 22, 2009
United Airlines is Broken
by Thomas Hinton
Perhaps you’ve seen the You Tube video entitled United Breaks Guitars by Dave Carroll. Dave serenades us with his composition about the United Airlines baggage handlers at Chicago O’Hare Airport who tossed around his expensive Taylor guitar (in its sturdy case) on the tarmac as he and other passengers looked out their airplane window in a state of shock and disbelief. Of course, when Dave Carroll and his band members arrived in Nebraska and retrieved their musical instruments from UAL’s baggage belt, they discovered his custom-made Taylor guitar was broken.
For nine months, Carroll tried unsuccessfully to resolve the matter with UAL. But, United Airlines representatives gave him the run-around and denied any responsibility for breaking his guitar. Frustrated by his experience, Carroll wrote a comedic song entitled United Breaks Guitars and posted it on You Tube. Carroll’s story has become a public relations nightmare for United Airlines. More than three million viewers have seen Carroll’s story-song and many have responded on You Tube and Twitter with their own horror stories about United Airlines. To make matters worse, several evening news programs have shared Carroll’s saga with millions of their viewers.
Succumbing to the negative public relations caused by Carroll’s song, UAL offered to repair his damaged guitar. However, Taylor Guitars of El Cajon, California, which hand-makes each instrument, beat UAL to the punch. They seized on Dave Carroll’s story immediately and contacted him offering to repair or replace his guitar. Bob Taylor, the brilliant owner and founder of Taylor Guitars, also made his own You Tube video to counsel musicians on how to care for their precious cargo when traveling by air. Taylor recommends not checking guitars, but instead, carry-on these items which is permissible by the TSA provided they can be stored aboard an aircraft.
While Dave Carroll and Taylor Guitars have come out winners, one must wonder what in the world United Airlines’ management was thinking? Did no one at United Airlines call a “time out” to ask colleagues, “Hey, how do we come out of this broken guitar scenario without egg on our face?” Sadly, this isn’t an isolated case at United Airlines. Acts of stupidity and customer abuse are repeated multiple times every day by a growing number of disingenuous United Airlines employees who lack common sense and do dumb things that alienate passengers and those hard-working UAL employees who are customer-focused. I’ve witnessed it personally in Chicago and Denver several times. Of course, it begs the obvious question -- why?
The answer is United Airlines is broken. Organizationally and culturally, UAL lacks a spirit of service. While the majority of UAL employees are dedicated, fair-minded people who give their best every day, a growing number of toxic UAL employees have been infected with the deadly workplace virus that is best described as “I don’t care!” Regrettably, this virus is spreading throughout UAL’s ranks and is spawning an attitude of disinterest and apathy from the top down. When the “I don’t care” virus seeps into the cultural blood stream of an organization the results are often fatal for the company. In the case of United Airlines, management must act quickly to curb the spread of the “I don’t care” virus and re-orient its employees in the ways of service, courtesy and empathy for customers, passengers and each other.
I am not recommending this action without careful consideration. In addition to interviewing many UAL passengers about their negative experiences, I’ve reviewed two key documents that tell me UAL is flying blind when it comes to customer relations and meeting the needs of its passengers. Consider UAL’s mission statement, which I could not find on its website or in any public documents that were easily accessible from UAL. However, a UAL representative told me that its mission statement reads, “To be recognized worldwide as the airline of choice.” This bland statement is ineffective and says nothing about the company’s commitment to its employees, customers, suppliers or profitability. UAL is operating with a very weak mission statement that offers employees no guidance on how to treat passengers and customers.
Secondly, I evaluated UAL’s Customer Commitment Document (CCD) which consists of 12 statements that provide greater clarity and insight as to how UAL employees should behave and respond to situations like the Dave Carroll broken guitar saga. Statements #3 and #4 of the CCD read: “Provide on-time baggage delivery” and “Provide a fair baggage liability limit.” CCD Statement #12 reads, “Respond quickly, appropriately and courteously to customer questions and complaints.” That’s positive, effective and clear.
Unfortunately, nobody Dave Carroll dealt with at UAL followed the airline’s CCD. If UAL was customer-focused and had trained its customer-contact employees to respond based on the CCD, the Dave Carroll problem might have never happened. However, once it happened, UAL employees should have relied on Statement 12 to guide them to a speedy and fair solution. By ignoring their CCD, it’s obvious that UAL employees do not know the CCD exists or they have been instructed to ignore them by management. In either case, the customer loses and, eventually, so does United Airlines.
My experience in dealing with broken companies like United Airlines is they often try to gloss over these negative incidents by dismissing them as an isolated customer service glitch or a training issue. Perhaps, this is why UAL is seeking permission to use Dave Carroll’s United Breaks Guitars as a customer service training tool for its employees. But, doing so is farcical. It’s akin to the captain of the Titanic ordering a pump to drain the water after the ship has struck the iceberg and the captain ignored all the warning signs.
My deeper concern is that United Airlines’ management doesn’t get it. Having worked with many companies to help them create a culture of excellence, I know from experience that what happened to Dave Carroll and his Taylor guitar goes far beyond an isolated customer service glitch. Frankly, it’s the result of a corporate cultural that pits employees against passengers because of outdated policies and procedures as well as verbal mandates from management not to spend money on customer complaints. In the short-term, the airline wins the battle but loses the war. Ultimately, customers realize they have a choice and they choose not to fly United Airlines. But, the damage in this case doesn’t stop with one passenger deciding not to fly UAL. In the Dave Carroll situation, millions of people who fly have been negatively influenced towards United Airlines and how it mistreats passengers. To compound UAL’s problems, those 3 million You Tube viewers are telling their friends and families to watch Dave Carroll’s United Breaks Guitars and then communicating via MySpace, Facebook and Twitter to tell the world how terrible United Airlines is. So much for UAL being the “airline of choice!”
Let’s not forget that every company has customer issues and gets complaints. However, best-in-class companies pounce on these moments-of-truth to practice the ABCDs of customer service -- going Above-and-Beyond-the-Call-of-Duty -- to win back customers. As Jim Nordstrom of Nordstrom Stores once told me, “Whenever we solve a customer’s complaint on the spot, we’ve not only fixed the problem at little cost to our company, but we’ve also earned that customer’s loyalty for life.” That’s why Nordstrom is noted for its outstanding customer service. Interestingly, it was also Jim Nordstrom who told me, “You can’t fix stupid!”
One other important point: toxic employees who abuse customers are not tolerated at best-in-class companies. I’m willing to bet those guilty baggage handlers who played football with Dave Carroll’s Taylor guitar are still on the UAL payroll at O’Hare Airport. Furthermore, I bet UAL will claim they are union employees and, therefore, their jobs are protected. But, such explanations are nonsense and only prove my point that management doesn’t get it. Furthermore, this attitude only serves to spread the deadly “I don’t care” virus. When an employee commits an egregious act that results in tarnishing the brand or damaging the company’s reputation, that employee should be terminated regardless of union rules. When toxic employees are sacked, it sends a strong message to the rest of the team -- champion customer service and protect our brand and image at all costs.
When management turns a deaf ear to customer complaints and performance improvements, employees will follow management’s example; and, through subtle actions, employees disrespect their customers. Sometimes it’s unintended. But, more often than not, it’s blatant misbehavior. This is why the baggage handlers at O’Hare Airport thought is was okay to play football with Dave Carroll’s guitar. This is why the flight attendants aboard Dave Carroll’s airplane ignored his pleas to stop the baggage handlers’ from tossing his guitar case on the tarmac. This is why the baggage claims representative in Nebraska dismissed his claims when he reported his guitar broken. Countless other UAL employees gave Dave Carroll the cold shoulder for nine months. It wasn’t until he sang his song on You Tube that United Airlines decided to recognize the legitimacy of his claim and respond to his concerns. But, mind you, United Airlines was only reacting to the negative public relations caused by Carroll’s song, United Breaks Guitars. I doubt they acted out of a sense of customer concern or a spirit of service because UAL has no such corporate credo to guide its employees.
Broken companies seldom get it. It wasn’t United Breaks Guitars that should have prompted United Airlines to act and resolve Dave Carroll’s problem. It should have been United Airlines’ compassion, empathy and concern for a loyal passenger whose livelihood was disrupted because UAL’s baggage handlers abused his property. But, when the “I Don’t Care” virus infects employees, nobody gives a damn and bad things happen.
Ironically, the Dave Carroll incident could have been nipped in the bud by an attentive and understanding UAL flight attendant aboard his flight or a senior baggage handler representative at his destination who knew and practiced CCD #12. But, in a broken company, passengers like Dave Carroll get bounced around from one customer service rep to the next -- just like his Taylor guitar. In Carroll’s case, he let his broken guitar tell his story to millions of You Tube viewers who are now disgusted with United Airlines and will probably choose to fly a competitor given the option.
It would do UAL’s senior management good to revisit the first law of profitability -- acquire and maintain your customers! If this credo was part of UAL’s mission statement or guiding principles, incidents like Dave Carroll’s broken guitar would not mushroom into a public relations disaster for United Airlines.
About the Author. Thomas Hinton is president and chief executive officer of the American Consumer Council, a non-profit consumer education organization with nearly 90,000 members in 34 states. Mr. Hinton is a frequent air traveler and supports the Airline Passengers’ Bill of Rights that languishes in Congress due to opposition from airlines including United Airlines. He can be reached at tom@americanconsumercouncil.org
Perhaps you’ve seen the You Tube video entitled United Breaks Guitars by Dave Carroll. Dave serenades us with his composition about the United Airlines baggage handlers at Chicago O’Hare Airport who tossed around his expensive Taylor guitar (in its sturdy case) on the tarmac as he and other passengers looked out their airplane window in a state of shock and disbelief. Of course, when Dave Carroll and his band members arrived in Nebraska and retrieved their musical instruments from UAL’s baggage belt, they discovered his custom-made Taylor guitar was broken.
For nine months, Carroll tried unsuccessfully to resolve the matter with UAL. But, United Airlines representatives gave him the run-around and denied any responsibility for breaking his guitar. Frustrated by his experience, Carroll wrote a comedic song entitled United Breaks Guitars and posted it on You Tube. Carroll’s story has become a public relations nightmare for United Airlines. More than three million viewers have seen Carroll’s story-song and many have responded on You Tube and Twitter with their own horror stories about United Airlines. To make matters worse, several evening news programs have shared Carroll’s saga with millions of their viewers.
Succumbing to the negative public relations caused by Carroll’s song, UAL offered to repair his damaged guitar. However, Taylor Guitars of El Cajon, California, which hand-makes each instrument, beat UAL to the punch. They seized on Dave Carroll’s story immediately and contacted him offering to repair or replace his guitar. Bob Taylor, the brilliant owner and founder of Taylor Guitars, also made his own You Tube video to counsel musicians on how to care for their precious cargo when traveling by air. Taylor recommends not checking guitars, but instead, carry-on these items which is permissible by the TSA provided they can be stored aboard an aircraft.
While Dave Carroll and Taylor Guitars have come out winners, one must wonder what in the world United Airlines’ management was thinking? Did no one at United Airlines call a “time out” to ask colleagues, “Hey, how do we come out of this broken guitar scenario without egg on our face?” Sadly, this isn’t an isolated case at United Airlines. Acts of stupidity and customer abuse are repeated multiple times every day by a growing number of disingenuous United Airlines employees who lack common sense and do dumb things that alienate passengers and those hard-working UAL employees who are customer-focused. I’ve witnessed it personally in Chicago and Denver several times. Of course, it begs the obvious question -- why?
The answer is United Airlines is broken. Organizationally and culturally, UAL lacks a spirit of service. While the majority of UAL employees are dedicated, fair-minded people who give their best every day, a growing number of toxic UAL employees have been infected with the deadly workplace virus that is best described as “I don’t care!” Regrettably, this virus is spreading throughout UAL’s ranks and is spawning an attitude of disinterest and apathy from the top down. When the “I don’t care” virus seeps into the cultural blood stream of an organization the results are often fatal for the company. In the case of United Airlines, management must act quickly to curb the spread of the “I don’t care” virus and re-orient its employees in the ways of service, courtesy and empathy for customers, passengers and each other.
I am not recommending this action without careful consideration. In addition to interviewing many UAL passengers about their negative experiences, I’ve reviewed two key documents that tell me UAL is flying blind when it comes to customer relations and meeting the needs of its passengers. Consider UAL’s mission statement, which I could not find on its website or in any public documents that were easily accessible from UAL. However, a UAL representative told me that its mission statement reads, “To be recognized worldwide as the airline of choice.” This bland statement is ineffective and says nothing about the company’s commitment to its employees, customers, suppliers or profitability. UAL is operating with a very weak mission statement that offers employees no guidance on how to treat passengers and customers.
Secondly, I evaluated UAL’s Customer Commitment Document (CCD) which consists of 12 statements that provide greater clarity and insight as to how UAL employees should behave and respond to situations like the Dave Carroll broken guitar saga. Statements #3 and #4 of the CCD read: “Provide on-time baggage delivery” and “Provide a fair baggage liability limit.” CCD Statement #12 reads, “Respond quickly, appropriately and courteously to customer questions and complaints.” That’s positive, effective and clear.
Unfortunately, nobody Dave Carroll dealt with at UAL followed the airline’s CCD. If UAL was customer-focused and had trained its customer-contact employees to respond based on the CCD, the Dave Carroll problem might have never happened. However, once it happened, UAL employees should have relied on Statement 12 to guide them to a speedy and fair solution. By ignoring their CCD, it’s obvious that UAL employees do not know the CCD exists or they have been instructed to ignore them by management. In either case, the customer loses and, eventually, so does United Airlines.
My experience in dealing with broken companies like United Airlines is they often try to gloss over these negative incidents by dismissing them as an isolated customer service glitch or a training issue. Perhaps, this is why UAL is seeking permission to use Dave Carroll’s United Breaks Guitars as a customer service training tool for its employees. But, doing so is farcical. It’s akin to the captain of the Titanic ordering a pump to drain the water after the ship has struck the iceberg and the captain ignored all the warning signs.
My deeper concern is that United Airlines’ management doesn’t get it. Having worked with many companies to help them create a culture of excellence, I know from experience that what happened to Dave Carroll and his Taylor guitar goes far beyond an isolated customer service glitch. Frankly, it’s the result of a corporate cultural that pits employees against passengers because of outdated policies and procedures as well as verbal mandates from management not to spend money on customer complaints. In the short-term, the airline wins the battle but loses the war. Ultimately, customers realize they have a choice and they choose not to fly United Airlines. But, the damage in this case doesn’t stop with one passenger deciding not to fly UAL. In the Dave Carroll situation, millions of people who fly have been negatively influenced towards United Airlines and how it mistreats passengers. To compound UAL’s problems, those 3 million You Tube viewers are telling their friends and families to watch Dave Carroll’s United Breaks Guitars and then communicating via MySpace, Facebook and Twitter to tell the world how terrible United Airlines is. So much for UAL being the “airline of choice!”
Let’s not forget that every company has customer issues and gets complaints. However, best-in-class companies pounce on these moments-of-truth to practice the ABCDs of customer service -- going Above-and-Beyond-the-Call-of-Duty -- to win back customers. As Jim Nordstrom of Nordstrom Stores once told me, “Whenever we solve a customer’s complaint on the spot, we’ve not only fixed the problem at little cost to our company, but we’ve also earned that customer’s loyalty for life.” That’s why Nordstrom is noted for its outstanding customer service. Interestingly, it was also Jim Nordstrom who told me, “You can’t fix stupid!”
One other important point: toxic employees who abuse customers are not tolerated at best-in-class companies. I’m willing to bet those guilty baggage handlers who played football with Dave Carroll’s Taylor guitar are still on the UAL payroll at O’Hare Airport. Furthermore, I bet UAL will claim they are union employees and, therefore, their jobs are protected. But, such explanations are nonsense and only prove my point that management doesn’t get it. Furthermore, this attitude only serves to spread the deadly “I don’t care” virus. When an employee commits an egregious act that results in tarnishing the brand or damaging the company’s reputation, that employee should be terminated regardless of union rules. When toxic employees are sacked, it sends a strong message to the rest of the team -- champion customer service and protect our brand and image at all costs.
When management turns a deaf ear to customer complaints and performance improvements, employees will follow management’s example; and, through subtle actions, employees disrespect their customers. Sometimes it’s unintended. But, more often than not, it’s blatant misbehavior. This is why the baggage handlers at O’Hare Airport thought is was okay to play football with Dave Carroll’s guitar. This is why the flight attendants aboard Dave Carroll’s airplane ignored his pleas to stop the baggage handlers’ from tossing his guitar case on the tarmac. This is why the baggage claims representative in Nebraska dismissed his claims when he reported his guitar broken. Countless other UAL employees gave Dave Carroll the cold shoulder for nine months. It wasn’t until he sang his song on You Tube that United Airlines decided to recognize the legitimacy of his claim and respond to his concerns. But, mind you, United Airlines was only reacting to the negative public relations caused by Carroll’s song, United Breaks Guitars. I doubt they acted out of a sense of customer concern or a spirit of service because UAL has no such corporate credo to guide its employees.
Broken companies seldom get it. It wasn’t United Breaks Guitars that should have prompted United Airlines to act and resolve Dave Carroll’s problem. It should have been United Airlines’ compassion, empathy and concern for a loyal passenger whose livelihood was disrupted because UAL’s baggage handlers abused his property. But, when the “I Don’t Care” virus infects employees, nobody gives a damn and bad things happen.
Ironically, the Dave Carroll incident could have been nipped in the bud by an attentive and understanding UAL flight attendant aboard his flight or a senior baggage handler representative at his destination who knew and practiced CCD #12. But, in a broken company, passengers like Dave Carroll get bounced around from one customer service rep to the next -- just like his Taylor guitar. In Carroll’s case, he let his broken guitar tell his story to millions of You Tube viewers who are now disgusted with United Airlines and will probably choose to fly a competitor given the option.
It would do UAL’s senior management good to revisit the first law of profitability -- acquire and maintain your customers! If this credo was part of UAL’s mission statement or guiding principles, incidents like Dave Carroll’s broken guitar would not mushroom into a public relations disaster for United Airlines.
About the Author. Thomas Hinton is president and chief executive officer of the American Consumer Council, a non-profit consumer education organization with nearly 90,000 members in 34 states. Mr. Hinton is a frequent air traveler and supports the Airline Passengers’ Bill of Rights that languishes in Congress due to opposition from airlines including United Airlines. He can be reached at tom@americanconsumercouncil.org
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