Auntie_GDec 29, 2022
Qasim Rashid, Esq.

As Southwest CEO Bob Jordan pretends to apologize—remember—SW got a $7B federal bailout, spent $5.6B of that on Stock Buybacks, gave their CEO a raise to $9.1M, & forced frontline workers into 16 hour shifts under threat of termination—while spending $0 updating SW software😳

Southwest’s debacle isn’t an accident. It’s the predictable result of billionaire & corporate corruption & greed—& thousands of workers & travelers are paying the price.

In a just world SW execs will face criminal charges.

Dec 29, 2022 at 7:45pmMastodon for iOS
Show threadDarwin WoodkaDec 29, 2022
@QasimRashid In a just world their employees wouldn't be having to fight for proper sick time off and benefits, either.
Show threadReneeVoiceBrandDec 29, 2022
@QasimRashid Can it be any more clear that these 'billionaires' aren't smart and 'game the system' to steal from the taxpayer??? Musk, Trump, Jordan....
Show threadottofluxDec 29, 2022
and i assure you they understaff their call-center with very likely under-paid staff, and if their phone system went down they would not have wanted heads to roll at their provider.
Show threadzeruchDec 29, 2022

@QasimRashid "In a just world SW execs will face criminal charges." Agreed.

I feel that even stronger for folks like the entire C-Suite of PG&E,

Show threadSamhain NightDec 29, 2022
@zeruch @QasimRashid the corporates at PG&E need to be tried for homicide.
Show threadzeruchDec 29, 2022
@samhainnight @QasimRashid I have long maintained that there was some real brilliance when George Carlin said (and I'm paraphrasing): send a handful of Wall Street bankers and their kin to gen pop prison for hard time (read, used as a chew toy for inmates with middle names that start with "the" like Jimmy The Fist), and you could fix this entire corruption problem in a generation.
Show threadgwangungDec 29, 2022
@zeruch @samhainnight @QasimRashid John Rogers (creator of LEVERAGE) said a similar thing: nothing will change until a rich white man goes to jail.
Show threadkellihazelDec 29, 2022
@QasimRashid This isn’t the first meltdown their system has had, either. It happens on a smaller scale periodically. And yet they still don’t update it. It’s ridiculous.
Show threadreeninphlDec 29, 2022
@QasimRashid Jordan just got the job this year. From what I’ve read, he wants to do the right thing, just couldn’t turn the boat around in time.
Show threadQasim Rashid, Esq.Dec 29, 2022

@reeninphl clearly they hired the right person 🙄

His predecessor got an absurd salary too

Show threadDiamond JoyDec 29, 2022
@QasimRashid Sec Pete tweeted about this months ago, about returning consumers their due. It seemed sort of detached from anything at the time. Some regulation focus back on big business was the big message, with follow up from Pres. Biden. Ya love to see it.
Show threadJPDec 29, 2022
@QasimRashid Southwest CEO: “Wanna get away?”
Show threadDrew MochakDec 29, 2022
@QasimRashid Do you mean this in the sense that they have broken a law but will not be charged, or that no law exists to sufficiently curtail the bad behavior? Assuming it is that second one, what laws would you suggest as a remedy?
Show threadMax Ganz II 🇺🇦Dec 29, 2022
@QasimRashid I am in no way saying this is wrong, and I know very little about SW, but I would say I see claims made left, right and center by everyone and their dog, and I pay no attention to any of them unless they're backed up with at least some form of evidence - links to articles, evidence, sources, you name it - because so many people say so much which is selected to support their case. You cannot take what people say at face value.
Show threadSassyMinaDec 29, 2022
@QasimRashid Unfortunately that is not the world we live in. They will continue to pillage because they can. Until we can vote in enough people to actually make them accountable (and will actually do what they we voted in for, looking at you Sinema), this will continue to happen
Show threadAndrew BennettDec 29, 2022
@QasimRashid
Criminal charges? Goodbye.
Show threadTravis Newton 👨‍💻Dec 29, 2022
@QasimRashid As an IT person, about 95% of the time it’s us screaming into the Grand Canyon… “Backups! Modernization! Upgrades!” But then CEOs think the AS400 in the basement will keep the company running while they allocate a $12 million bonus to themselves. Meanwhile, all IT wanted was $6 million to just fix a few things… I still struggle with this as a consultant! Great, you don’t want my advice, here’s my bill then! Lol
Show threadfirewyreDec 29, 2022
@QasimRashid
Show threadcoltorlDec 29, 2022
@QasimRashid He’s been CEO for less than a year, blame is likely misplsced here. IT infra collapse is a slow current that manifests after years of neglect. Jordan may be in the best position he’s been in to modernize their stack (with actual dollars to justify action). USDOT would be wise to even mandate it as part of the enforcement actions taken against SWA.
Show threadVader19695Dec 29, 2022
@QasimRashid genuinely curious what crimes have they committed? Oh they’ve seriously messed up, but what have they done that amounts to criminal behavior?
Show threadQasim Rashid, Esq.Dec 29, 2022
@Vader19695 I would argue fraud. Agreeing to a contract they knew they could not fulfill is fraud. People relied on SW fraudulent representations and were put in harms way as a result of that fraud.
Show thread@[email protected]Dec 29, 2022
@QasimRashid I hope Secretary Buttigieg will be able to get them on something substantial.
Show threadkrayneumDec 29, 2022
@QasimRashid This is probably an unpopular opinion, but if running your business poorly were a crime, no one would ever start a business. But you can bet the Southwest debacle will be addressed in civil court through one or more massive lawsuits. And many customers will take their business elsewhere. Add in likely government action, and this will be a hugely expensive holiday season for Southwest.
Show threadQasim Rashid, Esq.Dec 29, 2022
@krayneum running your business poorly is one thing. But taking on clients knowing full well ahead of time that you cannot fulfill the contract is beyond unethical and I would argue fraud.
Show threadkrayneumDec 29, 2022
@QasimRashid I doubt any prosecutor would file charges. Fraud requires intent, and to prove intent here you'd have to prove that Southwest knew for a fact that their systems would be overwhelmed by the combination of near-unprecedented weather and a crush of holiday travelers, and that significant harm to their customers would be the result. That would be a hard case to make.
Show threadheffaDec 29, 2022
@krayneum @QasimRashid would gross negligence be a better bet?
Show threadkrayneumDec 30, 2022

@heffa @QasimRashid Here's the legal standard for criminal gross negligence: "Gross negligence may be punishable by criminal law if the negligence committed is also found to be reckless."

So it would come down to proving "recklessness." To do that, you'd have to prove that Southwest knew that their actions would likely cause significant harm to others, and proceeded anyway. That gets into proving state of mind, which in a situation like this would be difficult.

Show threadQasim Rashid, Esq.Dec 30, 2022
@krayneum I can’t comment on what a prosecutor what do but I disagree on intent. Southwest knew full well they were not able to handle the customer influx but ignored it. https://www.washingtonpost.com/transportation/2022/12/28/southwest-airlines-flight-cancellations/
Southwest didn’t heed calls to upgrade tech before meltdown, unions say

A Dec. 21 internal memo sounded the alarm on staff shortages as a winter storm and the holidays loomed.

The Washington Post
Show threadkrayneumDec 30, 2022
@QasimRashid You need to prove intent to do harm, or at least that they knew harm was a likely result of their actions. That's not the same thing as proving they knew they had antiquated computer systems (which they obviously did). It's a tough hurdle to leap over, and it's why these sorts of cases almost always end up in civil court.
Show threadSeth D. AlfordDec 30, 2022

@krayneum @QasimRashid Clearly SW should be sued for lots of money.

Could a prosecutor convince a jury to criminally convict SW's senior management of fraud? That there was no way SW could get people to their destinations after taking their money? Sure, if the prosecutor could seat a jury of people who were elderly, or traveling with small children, who were stranded at the airport by SW. But from what I remember from last time I was called for jury duty, jurors have to be impartial.

Show threadkrayneumDec 30, 2022
@setha45 @QasimRashid Great point.
Show threadJohn AllisonDec 29, 2022
@QasimRashid
They really made a mistake by allowing those funds to be used for stock buybacks. Horrible mistake.
Show threadChristian KentDec 29, 2022
@QasimRashid @zippy1981 #billiondollarnews
Show threadTC Won't Give In To LiesDec 30, 2022

@QasimRashid
Stock buybacks ought to be illegal (as they were pre-Reagan)

Stock buybacks after a gov handout ought to be an immediate jail term.

Show threadQasim Rashid, Esq.Dec 30, 2022
@TCatInReality literally zero reason to allow stock buybacks other than increasing wealth inequality.
Show threadKevin RussellDec 30, 2022

@TCatInReality @QasimRashid

Agreed, put it in the next bill to provide support.

Show threadLee Keels ✅🖖🏽Dec 30, 2022

@QasimRashid

Make you wonder how well maintained their fleet is...

Show threadJudyBPaintsDec 30, 2022
@QasimRashid Hopefully, there will be consequences for their abuse of federal funding. Anecdotal evidence suggests an abundance of irate customers missed family holiday celebrations. If only Americans had a longer attention span.
Show threadRoseFromNJ/PhillyDec 30, 2022
@QasimRashid Exactly!! They need to be held accountable!!! 😠
Show threadBrian R. Sala 🍻Dec 30, 2022
@QasimRashid
I don't see the criminal charges part. The executives of #SouthwestAirlines should be punished by the market for their irresponsible disinvestment in IT and disrespect of their staff and customers. Fire the CEO. But what crimes?
Show threadGiraffe Slava 🇺🇸🇺🇦Dec 30, 2022
@QasimRashid the federal governement needs to stop handing out #corporate #welfare without giant strings attached.
Show threadKarl Morant 🇨🇦  🖖Dec 30, 2022

@QasimRashid

Tax the rich.

Show threadlensmanDec 30, 2022

@QasimRashid Capitalism ALWAYS externalizes the costs: pollution, misery, wasted time, life upheaval, etc. etc. -- as long as the money trickles up, it's all good.

They are ALL criminals.

Show threadSammy G 🇨🇦☕🍸Dec 30, 2022
@QasimRashid I will never be able to comprehend this level of greed. Please bookmark this toot in the event I ever become a billionaire.
Show thread🏳️‍🌈 Lucy Wildboots Dec 30, 2022
@QasimRashid Any news on what Secy Buttigieg plans to do about this?
Show threadEdgecrusherDec 30, 2022
@QasimRashid just like what should happen to Delta during the pandemic, funneling millions overseas then going to the bargaining table to make the union take concessions...fucking criminals.
Show threadJeffDec 30, 2022
@QasimRashid maga company maga results like Twitter
Show threadPetesmom *has moved*Dec 30, 2022
@QasimRashid Because corporate welfare has no strings attached but benefits for actual humans requires drug testing, no $ in a bank account, “work” requirements…. Corporate welfare should also have a “work” requirement and obviously strict rules about how to spend the welfare - I mean tax dollars provided by the workers.
Show threadwascaliwabbitDec 30, 2022
@QasimRashid this is not fully accurate. the federal aid prohibited buybacks. It is true that SW was doing large buybacks before 2020.
https://www.cnbc.com/2022/12/07/southwest-reinstates-dividend-after-three-years-as-travel-rebounds.html
Southwest Airlines reinstates dividend after nearly three years as travel rebounds

Southwest's 18 cents a share dividend will pay out on Jan. 31

CNBC
Show threadAvonLovesBlakeDec 30, 2022

@QasimRashid I would love to see the airline executives who contributed to a wheelchair user's death by
a) breaking her wheelchair
b) not paying for a suitable replacement wheelchair
face criminal charges.

https://www.businessinsider.com/disability-activist-died-after-united-airlines-destroyed-30k-wheelchair-2021-11

Disability activist died after United Airlines 'destroyed' $30k wheelchair

The wheelchair of Engracia Figueroa, 51, was damaged and she was forced to use loaner chairs unfit for her body, according to Hand in Hand.

Insider
Show threadHelchoseDec 30, 2022
@QasimRashid How much of this apparent corporate grift of public funds can we attribute to Jordan's management, since he's only been in charge for 10 months?
Show threadRick SchmitzDec 30, 2022
@QasimRashid I’m not so sure that the execs should be facing criminal charges, but they should probably be fired in disgrace. One of the things I find frustrating about the corporate world is that it’s so chummy that even after a horrible situation like this the SW execs can find work heading up other companies… all these CEOs are buddies with each other (or actually sit on each other’s boards) and have each other’s backs.
Show threadCUDA813Dec 30, 2022
@QasimRashid corporations are ruining everything, every fucking thing they touch! Just like that ignorant orange traitorous jackass and all that support him!
Show threadJonathan GrunauDec 30, 2022

@QasimRashid

Does it matter in the slightest that the CEO that did that stuff was the one prior who retired in 2022 after 18 years in the position doing such and the current guy is the target now?

Show threadBrett ClubbeDec 30, 2022
@QasimRashid wait what, Late Term Settler Colonial Capitalism is bad for people? Who knew?
Show threadmhoyeDec 30, 2022
@QasimRashid I ... don't know if this is corruption in the way we usually mean it. I mean, it's professional negligence and should be criminal negligence for sure, but I'd wager you could subpoena every paragraph written at that company and not find any criminal intent; you'd just find a total commitment to the idea that "shareholder value" is the most important thing that company produces, and not "happy humans delivered to their destinations."
Show threadmhoyeDec 30, 2022

@QasimRashid I think there's some sort of economic torment nexus at the intersection of Goodhart's Law, the idea of the primacy of "shareholder value", and Sinclair's observation that "It is difficult to get a man to understand something when his salary depends on his not understanding it."

That being, the moment an company's executive strata reward metrics are established by shareholder value, the company is going to turn out like Southwest did.

https://en.wikipedia.org/wiki/Goodhart%27s_law

Goodhart's law - Wikipedia

Show threadmhoyeDec 30, 2022
@QasimRashid In the same vein, a deep commitment to the combination of shareholder value and just in time delivery of any god or service effectively requires both a fully subjugated workforce and zero investment in long term stability or process improvement, both of which take investments of time and effort that won't show up on this years' balance sheets or comp cycles, and so must be deferred indefinitely.