I would likely still not know of Modine Manufacturing were it not for a link on my favorite media news site. Apparently Modine was offended by a perfectly accurate headline in the local rag on a story about how the company laid off 50 of its workers recently.
The headline: "Modine fires 50."
Modine President David Rayburn apparently took offense at such a direct headline. He was clearly annoyed that the page designer didn't have enough space to allow the copy editor to write "Modine takes account of the interests of all its stakeholders, relieves 50 workers of further participation."
Rayburn writes:
We thoroughly evaluated every position here in Racine, to determine its place in the new structure, and to eliminate redundancies. We offered early retirement packages, and then made the tough decision to eliminate 50 positions. We acted responsibly. We acted in the best long-term interest of all of our stakeholders - customers, suppliers, employees and shareholders.
Whatever. I write back:
Dear Mr. Rayburn: Fuck you.
Come on, man. Grow a pair. Sack up and tell people the truth: "Because of poor management, unrealistic profit goals, and an inability to anticipate changes in the global market for thermal management, we got to November with a realization that we need to find a way to keep more of the money we're making for ourselves. Because of this, we have determined that 50 of our co-workers are no longer necessary to the operation. Therefore, as the holiday season begins, we have decided to take what we were going to pay them next year and keep it for ourselves. Nothing personal; just business."
Instead, Rayburn figures shooting the messenger is a better plan. "I was very disappointed to see the large headline in the newspaper on Friday, October 27, "Modine fires 50," Rayburn wrote in his letter to the Journal Times of Racine. "These employees' jobs were eliminated, based on a business decision, carried out after careful consideration. It was very insensitive to these employees' hard work and service to characterize their situation in the sensational way you did."
My guess is the copy editor wrote "Modine fires 50" because "Modine shitcans 50" was a character or two too long. I again offer Rayburn an alternative: "It was very insensitive to make such a big deal about our bad business practices. It makes us look like cold, unfeeling bastards who would fire people in Q4 rather than take a risk of our bonuses being lower."
Figuring those 50 jobs averaged about $40,000 a year in salary and benefits, the cuts in Racine saved Modine $2 million for fiscal 2007. This doesn't count the savings from the 45 positions opened by early retirements that were not filled.
According to the AFL-CIO's Executive PayWatch Database, Rayburn earned just shy of $2.7 million in total compensation in 2005. One suspects it never occurred to Rayburn to try to get by on $700,000 next year in order to save these jobs.
There are other ways to keep labor costs down. Measurable performance goals and tough evaluation processes would help minimize dead wood. Realistic profit expectations would keep greedy stockholders and boards of directors at bay. Executive pay is horrendously out of control in all industries; would be nice to see some stockholder outrage against THAT.
Listen, I understand that it's just business. It happens in my current line of work, and it's happening a lot in my former line of work. People get laid off every day. But, Mr. Rayburn, save the bullshit. Just stand up and say, "We fired 50 people today , because we thought our chances to make money would be enhanced by their absence."
Oh well. At least Modine is creating opportunities in China and Mexico.
Meanwhile, here in America, we'll just keep telling the middle class that they're unnecessary.
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