Also: Peltz at Disney, Microsoft PTO, living plastic-free.
Good morning.
Unfortunately, I was traveling yesterday, and got caught up in the FAA’s ground stop, which caused more than 1,200 flights in the U.S. to be cancelled and thousands more to be delayed. Fortunately, mine was in the latter category, and I am writing this while finally making my way back to New York. Hard to know what to make of the air travel mess, but a few takeaways:
—The breakdown of a key software system used by the FAA underscores that it’s not just Southwest that has antiquated systems desperately in need of updating. Traveling Americans deserve better.
—Knowledgeable sources said a cyberattack wasn’t at the root of the problem. But if the software is that antiquated, it is probably vulnerable to cyberattack as well.
—Delta and United managed the shutdown better than American and Southwest. If you have a choice, it should now be clear which airlines you should fly.
—The FAA’s role is a reminder that the U.S. needs a functioning federal government to keep the planes running on time, among many other things. Gridlock and partisan stalemate are not good for business or the economy.
On that last point, there’s growing concern that last week’s extended showdown over electing a House speaker may set the U.S. up for a debt limit crisis later this year. Rules changes adopted by the House in the wake of the showdown have made it easier for a small group of House extremists to hold the country’s economy hostage by refusing to raise the debt limit. Interestingly, the rule changes also make it possible for a small group of House GOP moderates to resolve such a crisis by siding with Democrats. But the problem here is that both parties are increasingly in thrall to the small number of people who vote in primaries and lack incentives to act in the broader public’s interest.
Readers of this newsletter constantly counsel me to steer clear of politics, and most of the CEOs I speak with would like to do the same, but it’s difficult for business to thrive in a society where politics is broken.
More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
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Disney's activist
Disney has rejected activist investor Nelson Peltz's attempt to join its board and named Nike executive chairman Mark Parker its next chairman in what's shaping up to be a messy proxy fight and a giant headache for CEO Bob Iger. Peltz argues that Disney has “lost its way resulting in a rapid deterioration in its financial performance." CNBC
Unlimited vacation
Microsoft is introducing a "discretionary time off" system, dropping its previous model that gave employees four weeks off a year. The new policy lets workers take time off as needed. With 122,000 U.S. employees, Microsoft is one of the biggest companies to offer unlimited vacation. Fortune
Plastic-free
Plastic is everywhere. Take it from journalist A.J. Jacobs, who tried to live without it for 24 hours. His experiment required a bamboo toothbrush with bristles made of wild boar hair, DIY deodorant, and foraging for raw food. New York Times
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Ethical Technology Companies may want to gain a competitive advantage from emerging technology, but at what cost? Deloitte’s inaugural State of Ethics and Trust in Technology report dives into how ethical principles are currently being applied to emerging tech. Explore the findings here.
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