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Management Side

"Why it is imperative to eliminate graft now"

Jim,

That is probably one of the best articles you have written. As the technical support person for a supplier, I was sickened with what I saw going on in the industry. It was frustrating to go to certain mill sites and do an outstanding technical job and find out that another supplier got the business because they did a "better job of entertaining." Over the years I certainly heard examples of all of the types of "entertaining" you mentioned. I remember hearing about one manager who would insist on sales reps filling his truck with gas. What is sad is that when suppliers try to change, there is resistance.

The level of "graft" wasn't just at a management level, it included trials that ran better if donuts or pizzas were supplied to the crew.

The good news is that after over 30 years in the industry the problem is much less than it used to be, but it should be a non-issue. Your legal notice is perfect.

If you use any of this, better not use my name. I need to protect the guilty and not hurt my consulting business.

Best Regards,

[name withheld]

***

Riddle answer: 4 weights--2, 5, 10 and 22 pounds.

Happy New Year Jim!

Erik Cordua-von Specht
Vancouver, British Columbia
Canada

***

Well said on your column. There should be more of that type of editorial in the industry magazines.

I suspect that you will get lots of feedback on it.

I have seen a fair bit of obvious graft, ranging from mysterious decisions by upper management to buy certain items, to unexplainable promotions within the company.

A couple of additional experiences may help you in further writing.

I have done much more work for environmental regulatory agencies in the past 15 years than I ever expected to. Unfortunately this has led me to seeing another seamy side of the industry. It is astonishing how VP’s and Presidents will tell barefaced lies at meetings with the EPA and equivalent agencies. In some cases they achieve the less rigorous regulations they want, but they have caused the paper industry’s credibility in US regulatory circles to be lower than rock bottom. Thus, even the honest ones are never believed.

This has led to some extremely onerous regulatory permitting and paperwork, although also to easy effluent and air emission standards in the US, both relative to overseas competitors.

One less obvious cost of the dishonesty is that when the boss lies willingly in front of his subordinates, he is implicitly encouraging them to do same, leading to the graft you mention.

The second sickening feature of working for the regulators is being offered bribes by VP’s (this has happened twice) Of course, always one-to-one, with no witnesses.

In contrast, although I have had at least 50 consulting contracts for various regulators, none of the civil servants has come near to looking like he wants a kick-back. In some cases, especially the US EPA, I cannot even buy them a beer or lunch.

Nobody in the industry has ever asked me for a kick-back for giving me work either, in 36 years consulting (or the 2 years before that working for a supplier). Likewise, when I worked 5 years in the mill, no supplier offered me a bribe, although plenty bought lunch or dinner. (never more)

Hopefully will see you at PAPTAC/Exfor in February.

Neil McCubbin
Foster, Quebec
Canada

***

Jim,

Wow a response from me two weeks in a row. But then your columns are spot on about honesty. One thing I can say about IP and our local operation, theft and graft was not tolerated. I was fortunate to work in that environment, which best I can tell remains the same today.

Concerning your riddle, I figure 6 weights: two 1s, a 2, a 5, a 10 and a 20 pounder. This combination will get to 39 lbs. If they don't balance the scale, the weight is 40. For grins I think the 2# can be replaced by a 3# but this doesn't reduce the number of weights required, just allows you to weigh 40#. But since a 3# weight probably costs more that a 2# weight, the 2# is more economical, uses less material and therefore is more environmentally friendly. There are other solutions using 6 weights (1, 2, 4, 9, 17, & 6 and 1, 2, 2, 5, 10, & 20 are two examples).

I'm teaching environmental science this semester in HS. Gloom and doom discussion centers on the near and far Eastern countries that have the worst problems today. The US is targeted for its per capita water use and ecological footprint, both of which are number 1 in the world by good margins. By the way, based on 2004 data we use more water flushing toilets per capita than taking baths. I guess some people just don't bathe.

Peace,

Gene Canavan
Prattville, Alabama
USA

***

Thank you for taking this matter openly on the table.

Many European companies have sent a letter to suppliers and denied giving any kind of gifts to their employees.

Why the culture of graft and tax avoidance is taught even to the smallest children in restaurants.

Its name is tipping.

BR

Jukka Joutsjoki
Finland

***

Jim,

I can weigh that package with six weights (and I'm not seeking any
payments) - 1, 2, 4, 5, 13, and 26-lb weights.

Best regards from frigid (-4 F this morning with wind chill of -20 F))
Loveland,

Jeff Reese
International Paper
Loveland, Ohio
USA

***

Now our own industry is in line with their hand out to the government for some of the bailout money. I don’t know what to think of it, but my initial reaction is “oh no, not us too”. I suppose, however, that we’d be foolish NOT to get our share of the federal handouts if it will really save jobs.

Please, address this in your column so I have a rational, informed opinion to consider.

AF&PA (the American Forest & Paper Association) is urging quick action by Congress and the incoming Obama Administration to help preserve the $200 billion forest products industry's 1 million jobs. AF&PA President & CEO Donna Harman stated that the association's proposal needs to be considered as part of an overall economic stimulus plan so that the industry and its workers can contribute to an economic recovery. Details of the proposal can be found on AF&PA's website (www.afandpa.org).

Jon Kerr
Andritz
Loveland, Ohio
USA

---

Jon, done above. However, I think many do not use the adjective "rational" when it comes to me.

Jim

***

Jim,

Great article this week, as usual. If you were to weigh up to 40 lbs of your return e-mails (print them out, it's good for business) on a pan balance you would need eight weights:
(5) 1 lb
(1) 5 lb
(1) 10 lb
(1) 20 lb

Best Regards,

Don Boyd
Press Technologies
Wheat Ridge, Colorado
USA

---

Don

I was in your town on 12Jan09, sorry I didn't know you were there.

Jim

***

Jim,

The only thing I can add is an opinion. As Pogo would say, "we have met the enemy and they is us". And, to paraphrase a Dilbert cartoon, "there can be a fine line between legitimate business activity and grand theft".

Chuck Green
Webster, New York
USA

###

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