Tuesday, July 31, 2007

Message for those of you left behind

Prepare for the future, the old Hertz has passed away and new one has arrived. As dark as it seems, and I understand what you guys are going thru. Most of your comments about this new regime is true. This is 21st century corporate America. Walmart set the tone in the 80's and 90's. Read "Bully of Bentonville" BUT IT DOESN'T MAKE IT RIGHT! You guys can survive in this new area. Used the Lean Program to your advantage. I still wish I was still working at Hertz. Even though I agree this new direction can destroy Hertz in the years ahead, be it 5 yrs or 10. I loved what I did at Hertz. I would go back in a minute. I would find away to make my job work in spite of other circumstances. Walking into work and having your City Manager say I gotta let you go, and I'll help you clean out your office is a feeling I'll never forget. And I'm still searching for a good paying job that can offer the passion Hertz provided for 13 years.

You guys stay focus and remember there are alot of people who would love to be back in the saddle at Hertz. Those of you who are Managers you can set set the tone by your dedication to your employees, co-workers and manager. Let the "Lean Program" work in your favor. I'm not saying you gotta take it up the a%# like a good soldier, I'm saying find some joy in the midst of this crisis and use that to strive. I know morale will probably never be the same for the next few years, but stay strong, focus and make the proper adjustments needed to run your local operation. Not being satisfied with current upper management shouldn't breed hatred. Hatred will ultimately destroy you.

Outsourcing

This is what concerns me about outsourcing and what one possible casualty that could result when such an ideal is hatched out of greed and not necessity. I can see such a move eventually result in closing small airport locations in cities with stagnated or dying economies and then selling these locations as franchises. Corporate wouldn't have the fleet expense, or airport counters and/or building lease expenses. Which anyone in management knows is outrageously high. These two things will kill a business plan quicker than 9/11 did in 2001. And no union shop which we all know is an ultimate check and balance monster when up against a company who's goal is to make money by any means necessary. Could you imagine Hertz employees without an union, no more guarantee 40 hrs, and part-timers without insurance. What type of staff will you create in 5 years? In a nutshell, the franchise owner would be responsible for all major expenses. Imagine the profit Hertz would occur not having to deal with fleet cost and building leasing in cities where "padded" business plans are hardly ever met. And Hertz still get a piece of the action from every franchise location who carries the Hertz name. I never thought I would never see the day that someone would be able to essentially committ RICO acts legally. If you are a corporate own location in a small market, a city where the economy is weak or dying and your location does between 800 to 1200 rentals a week , such a move could happen within the next two years. And remember the airline industry, which fuel airport rentals, will be the primary indicator, along with economy, which airports will be transform into franchises. Cities who airport airlines is struggling or cannot compete with the current price wars, will be the first to get hit. This is scary for every Hertz employee who works in a small city. A franchise owner has the option of cutting wages , layoff of veteran high paid station and area managers. And of course voiding union contracts. Hertz will be a wealthy company with a third world employee staff and customer service reputation. These owners will do to Hertz what Chicago and New York mob did to Vegas in the 40's and 50's. And it's all legal. Same mentality as the mob commission, except what they will do to Hertz employees is legal.