BulletProofBlog the blog on crisis communications

In this regular feature, Bulletproof interviews top plaintiffs' attorneys for their perspective on the crises likely to affect businesses in the near future. Today we talk to Bruce Kaster of Kaster & Lynch PA in Ocala, Fl. Mr. Kaster is universally recognized as the leading plaintiff' s lawyer in the United States for defective tire cases as well as an inexhaustible resource of information and guidance for other lawyers handling such cases throughout the country.

What effect has the recalls and lawsuits of the past decades had on the tire industry?

Bruce Kaster: The tire industry is a particularly glaring example of how difficult if not impossible it is to effect real change and to protect consumers when CEOs are primarily motivated by bonuses. Most plants are rundown and their technology is antiquated. We have established through sworn testimony of tire plant workers that tires have been contaminated by everything from chicken bones to live shotgun shells. 

But the kind of infrastructure overhaul that is needed would require major capital investments and, in turn, lower margins and reduced compensation.

There are likewise disincentives for investing in proven safety measures that prevent tread belt detachment. They' ll wrap nylon overlays - which virtually eliminate tread separations even on tires that have design defects - around some tires, but not all tires. There are tires that do not have adequate belt edge wedges to reduce stress. Many innerliners do not have adequate air retention. Meanwhile, auto manufacturers have recommended that tires be under-inflated by as much as nine pounds and, in the warmer Sun Belt areas, the tread separation disasters occur sooner rather than later.

Michelin, on the other hand, has proven that a company can manufacture safe tires and still make money. But to achieve what Michelin has, the other brand-name manufacturers have to take a great leap forward. It will require sacrifice, and sacrifice is not something that a CEO, who only plans to stick around for five years or so, is willing to make. His interests are pecuniary and short-term.

What does Michelin do right?

Bruce Kaster: Michelin builds quality control into every stage of the manufacturing process. They do extensive testing. They inspect every tire and they don' t just go through the motion. Yet sometimes even they build defective tires. Because tires are built largely by hand, mistakes are made and, even with the best system, at times not detected. That is why adequate safety measures such as Nylon safety belts and adequate belt edge wedges are critical for all tires.

Unfortunately, I still expect continuing heavy caseloads in the near- and long-term future. What happens in a down economy? People run their tires longer. They buy cheap. And manufacturers cut costs.

If an industry CEO were willing to take your advice, what would you tell him?

Bruce Kaster: I' d tell him four things.

One - you must inspect every tire before it leaves the plant. Don' t just pay lip service to the inspection process.

Two - change your system for rewarding workers. Right now, workers are rewarded for producing quantity. Reward them for quality and you change the mindset of the entire industry.

Three - clean up your plants. Right now they' re absolutely filthy. How motivated do you think employees are going to be in such an environment? How much pride will they take in their work? When they look at their workplace, can they possibly imagine under the present conditions that they can actually produce a quality product?

Four - adopt specific safety measures, belt edge wedges, and nylon overlays - and dare other companies to match you. Maybe you' ll catch up to Michelin in terms of brand equity and reputation, maybe you won' t. But you' ll make significant strides. Tell your competitors that, if they don' t match your safety initiatives, you' ll do an ad campaign that calls them to task. Be bold.

And yes, make the personal financial sacrifices that, at this point in history, all CEOs must make if they are to be leaders and not just overpaid functionaries.

Larry Smith is Senior Vice President of Levick Strategic Communications and a contributing author to Bulletproof Blog.