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mahatmakanejeeves

(57,288 posts)
Wed Jun 18, 2014, 10:01 AM Jun 2014

Bloomberg Businessweek: GM Punished Those Who Spoke For Safety

Source: Jalopnik, Bloomberg Businessweek

1st Gear: Report: GM Was More Than Incompetent

The cover story for this week's Bloomberg Businessweek by Nick Summers and Tim Higgins goes beyond the Valukas Report in pointing out that, according to court documents and interviews, GM not only passively ignored possible safety issues because of systemic management problems, they also punished whistleblowers in a concerted effort to suppress problem reporting. ... I'm going to excerpt the first bit because it's going to make you want to read the rest:

It was close to 3 a.m. on June 6 when Courtland Kelley burst into his bedroom, startling his wife awake. General Motors (GM), Kelley's employer for more than 30 years, had just released the results of an investigation into how a flawed ignition switch in the Chevrolet Cobalt could easily slip into the "off" position—cutting power, stalling the engine, and disabling airbags just when they're needed most. The part has been linked to at least 13 deaths and 54 crashes. GM Chief Executive Officer Mary Barra, summoned before Congress in April to answer for the crisis, repeatedly declined to answer lawmakers' questions before she had the company's inquest in hand. Now it was out, and Kelley had stayed up to read all 325 pages on a laptop on the back porch of his rural home about 90 miles northwest of Detroit.

The "Valukas Report," named for former U.S. Attorney Anton Valukas, who assembled it at GM's request from interviews with 230 witnesses and 41 million documents, blamed a culture of complacency for the more than decade-long delay before the company recalled millions of faulty vehicles. It described employees passing the buck and committees falling back on the "GM nod"—when everyone in a meeting agrees that something should happen, and no one actually does it. On page 93, a GM safety inspector named Steven Oakley is quoted telling investigators that he was too afraid to insist on safety concerns with the Cobalt after seeing his predecessor "pushed out of the job for doing just that." Reading the passage, Kelley felt like he'd been punched in the gut. The predecessor Oakley was talking about was Kelley.

Kelley had sued GM in 2003, alleging that the company had dragged its feet addressing dangers in its cars and trucks. Even though he lost, Kelley thought that by blowing the whistle he'd done the right thing and paved the way for other GMers to speak up. Now he saw that he'd had the opposite impact: His loss, and the way his career had stalled afterward, taught others at the company to stay quiet. "He stood in the doorway of our bedroom with a stunned look on his face," Beth Kelley, his wife of 23 years, says. "Maybe we're just extremely naive, but we really thought that since this all happened, that something good would come out of it."

Read more: http://jalopnik.com/bloomberg-businessweek-gm-punished-those-who-spoke-for-1592514766



GM Recalls: How General Motors Silenced a Whistle-Blower

Punishing whistleblowers? Uh-oh.

OSHA's Whistleblower Protection Program

Home

OSHA's Whistleblower Protection Program enforces the whistleblower provisions of more than twenty whistleblower statutes protecting employees who report violations of various workplace safety, airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health insurance reform, motor vehicle safety, nuclear, pipeline, public transportation agency, railroad, maritime, and securities laws. Rights afforded by these whistleblower acts include, but are not limited to, worker participation in safety and health activities, reporting a work related injury, illness or fatality, or reporting a violation of the statutes.
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Bloomberg Businessweek: GM Punished Those Who Spoke For Safety (Original Post) mahatmakanejeeves Jun 2014 OP
Boy they sure played the 'those lazy workers didn't say anything' card this time though. AtheistCrusader Jun 2014 #1
It's the American Corporate/Political way Demeter Jun 2014 #2
Message auto-removed Name removed Jun 2014 #3
At the annual Big 3 automakers' respective bank meetings Divernan Jun 2014 #4
The leadership of GM has been compared with the old Soviet Politburo. happyslug Jun 2014 #5
Live now: General Motors recall hearing mahatmakanejeeves Jun 2014 #6
always reminds me of Challenger, in fact: an organization can come to conclusions MisterP Jun 2014 #7
Your tax dollars at work. Nice. n/t Psephos Jun 2014 #8
Stop Blaming GM's 'Culture' And Start Blaming People mahatmakanejeeves Jun 2014 #9

AtheistCrusader

(33,982 posts)
1. Boy they sure played the 'those lazy workers didn't say anything' card this time though.
Wed Jun 18, 2014, 10:03 AM
Jun 2014

Gee, you inculcate a culture of insulating yourself from reprisal, and you wonder why nobody stuck out their neck?

Meanwhile, these flaws contributed to consumer deaths.

Response to mahatmakanejeeves (Original post)

Divernan

(15,480 posts)
4. At the annual Big 3 automakers' respective bank meetings
Wed Jun 18, 2014, 11:20 AM
Jun 2014

by which I mean the Dog and Pony shows corporations have each year to convince their major financial resources what great credit risks their corporations are, a close friend who was a bank VP of corporate lending for Fortune 500 companies told me back in the 90's that the Big Three had a particularly out of proportion management culture, where all the good old boys expected to be regularly promoted so there were excess layers of management, and the companies kept adding more models of cars so their managers could spread out more.

 

happyslug

(14,779 posts)
5. The leadership of GM has been compared with the old Soviet Politburo.
Wed Jun 18, 2014, 11:48 AM
Jun 2014

Last edited Wed Jun 18, 2014, 03:07 PM - Edit history (1)

With the Politburo coming out as being more innovative (which is one way of telling people how bad is the management of GM when it comes to bad things management was NOT prepared to handle). We know where the Politburo took the Soviet Union and GM's management looks like it is headed down the same road. Remember the Bankruptcy only punished investors in GM, not management and thus until Management is upgraded this will continue.

Both were about as open to the outside (i.e. no outside input in either institution).

MisterP

(23,730 posts)
7. always reminds me of Challenger, in fact: an organization can come to conclusions
Wed Jun 18, 2014, 02:51 PM
Jun 2014

that NONE of its members want, because an institution has its own motives and ways of getting things done (the three rough dimensions of human action are interest, ideas/ideology, and institution)

http://en.wikipedia.org/wiki/Challenger_explosion
http://en.wikipedia.org/wiki/Roger_Boisjoly
http://en.wikipedia.org/wiki/Abilene_paradox

mahatmakanejeeves

(57,288 posts)
9. Stop Blaming GM's 'Culture' And Start Blaming People
Thu Jun 19, 2014, 09:58 AM
Jun 2014
Stop Blaming GM's 'Culture' And Start Blaming People

Patrick George
Yesterday 6:41pm

Culture can't be fired or reassigned or sued or held criminally negligent by a court. But companies and their people can. It's time to stop blaming GM's culture and start holding more of the people behind it accountable.

Let's first take a look at what critics mean when they talk about GM's culture. In Valukas' report, it means "the GM nod," where an entire room full of people nods in approval to the agreed plan of action, and then nobody actually does anything. It means an environment where stall-outs weren't considered a safety problem. It means managers being afraid or unwilling to report problems to other departments or senior executives.

These criticisms are in the news a lot these days, but really they're nothing new. For decades GM has been lambasted for being too insular, too arrogant and too bureaucratic. From quality issues to incomprehensible production decisions to little things as ridiculous as the Chevy Volt Dancers, "everything generated inside the company was by definition better than anything from outside," as Green Car Reports so astutely once put it.


It's a company that primarily promotes from within, employs generations of families one after another, and doesn't like to challenge the status quo. These days GM's culture seems not unlike that of another troubled Midwestern business giant, Target, that is also plagued by an environment where admitting problems, being critical and trying new things are all discouraged.
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