Global Reset

I’ve previously commented on Wal-Mart’s closing of a unionized store and this recent action from Northwest demands similar cheers:

Northwest’s strike toll: 1,200 jobs gone

About 1,200 union jobs have been eliminated since mechanics and plane cleaners walked off the job three days ago, Northwest Airlines said Monday, as it uses the strike to impose many of the cost-cutting changes it demanded during months of contract negotiations.

That’s only 1,200 of the 4,400 strikers, so there is bound to be some major backlash from the surviving strikers. I hope that Northwest can survive it.

Before the strike, Northwest told AMFA it must reduce the cost of cleaning and fixing its planes by $176 million a year. Hiring outside contractors to do much more of that work is a big part of the airline’s plan to do that. A 25% pay cut for all AMFA workers is another.

I can understand these guys don’t like the idea of a pay cut. But what I don’t understand is where the union organizers (presumably smart people, though I may presume to much) think the money is going to come from if Northwest doesn’t make that cut. The airline industry is sinking and, if individual airliners want to survive, they’re going to have to put control of the company back in the hands of the CEO’s.

I had an argument with someone earlier today about the age-old subject of open-source, democratic software versus corporate, money-driven software. I side with the capitalists and investment bankers knowing where to make the money, and hence producing the best software, though admittedly sometimes slower than their investors would like. I bowed out of the argument rather early when it became obvious that we disagreed fundamentally and he seemed to just enjoy knocking the entire idea of a corporation or any entity with a sufficient amount of money behind it. Seriously kids, don’t waste your time arguing with hippies. But, I just thought of a great counter to his “open source scratches all itches best” viewpoint… Where the hell are the open source Desktop Search apps? Relational DB filesystems (or a relational DB optional layer), with lots of indexes on various types of meta-data, are obviously the way of the future… You can’t tell me no open source guys have that itch? And with the obvious security concerns (see: Google Desktop Search), I’d think the open source mobthink squad would answer the call.

All 4 corporate solutions I have tried are beyond excellent (Copernic, Apple’s Spotlight, Google Desktop Search, and MSN Desktop search).

Note: I, myself, produce open source software everyday at my job. I’m not opposed to open source, but I know for a fact that the apps my team produces could only be better with more money behind them and only get worse with more democracy. We see it in action every day… Creative minds do better when there is a greater incentive to produce.

If someone posts a link to an open source project which does a decent job of implementing fast desktop search, I will post a picture of my foot in my own mouth.

I really am honored to be working for a company whose CEO I have so much respect for. I found this recent interview with Jack Gifford which made me think I should post on it. All of Jack Gifford’s public comments on acquisitions, stock option expensing, outsourcing, and the future of US Tech have made me very proud to work for him.

One comment in particular in this interview reminded me of a discussion I had during the Whistler trip. I mentioned how incredibly stupid it seemed to me that Blockbuster was attempting to make a hostile bid for Hollywood video. Justin seemed to not agree with me, but Justin is getting his MBA… so he probably enjoys making a business case for just about anything. :) I didn’t do a very good job of defending my point at the time. Actually, I still think my point, as it was made, was a fine point, but it probably would have been taken much better by the group if I said it without the noticeable slurring of my speech due to the excessive consumption of alcohol. The main point I made was that Blockbuster is already everywhere… Buying out the guy who is only a few places doesn’t seem to add anything to their current chances for success. Sure they can convert some Hollywood video stores into Blockbuster stores and close down the ones they don’t need, but I really feel like it’s a waste of money and it reeks of desperation. They, basically, aren’t going to get what they pay for. I like the way Jack Gifford put it when he was asked about Maxim’s acquisition of Dallas Semiconductor:

You have gone on the record saying that acquisitions only tend to dilute the intellectual and financial value of a company, and that anything worth having will be overpriced, while anything affordable will be next to worthless. But given your success assimilating Dallas Semiconductor into the fold, are you tempted to try the same trick again? J G.:The short answer - no! I really wouldn’t want to put myself or the company through that again. It took a lot of hard work to make the acquisition a success, and this was more down to our pure tenacity than anything else. Dallas took about 10% of our revenue to buy, and now it is actually contributing 20% towards our revenue, so it has clearly been a good move for us. Nevertheless I will return to my old axiom - everything that you can afford to get isn’t worth it, and anything that has real value is going to be hugely overpriced. Mediocrity buys mediocrity. But if we paid slightly over the odds for Dallas, that nothing compared to what Texas Instruments paid for Burr Brown. I don’t think they can ever hope to gain back what they have had to invest into it.

Unionized Wal-Mart to Close

Wal-Mart opens store in Quebec. Workers form Union. Wal-Mart says it can’t be profitable if it meets the demands of the Union. Workers say, “So?” Wal-Mart tells them to pack their shit and go home.

I am a fan of great wealth, but I’ve never been much of a fan of the Walton franchises. They’ve always seemed too religious to me. What with their only selling the edited versions of CD’s (do they still do that?) and my local Sam’s Club’s prominent display of new religious books along with 20 different editions of youth bibles. I am a fan of saving money though and I like buying in bulk (reduces number of trips to store per month, very efficient), so I’ve been a Sam’s Club member for years. Stories like this make me proud to be a member.