MANAGEMENT: The Kickback Scourge

The Pan American World Airways purchasing agent knew a good deal when he saw it. Offered some generous cash incentives for steering a few Pan Am orders to a Miami-based electronics supplier, he grabbed. Then his bosses became suspicious, arranged a legal wire tap and recorded him in the act of negotiating kickbacks. That is when the second good deal came along for the agent—a union-contract clause stipulating that an employee fired for cause must be notified within 30 days of committing the offense. Pan Am did not want to confront the...

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