Chapter 11
The Cuban Connection Other than teaching scuba diving to tourists in Puerto Rico, the best job I ever had was as the Area Marketing Director for Latin America for Carrier, the air conditioning giant subsidiary of United Technologies. At the time United Technologies was one of the top ten largest multi-national companies in the world, publicly traded on NYSE under the symbol UT. I had gotten this job through a local Miami head hunter, ironically the first and only time I ever used the services of a personnel agency. It was an executive dream job for a young guy like myself.
It came with a very
healthy salary
I envisioned myself
and incredible benefits package.
working there until retirement. My girlfriend was even more thrilled with my prestigious new job and the security of being a UT employee really appealed to her.
Their small but luxurious office was located in Coral Gables at 2100 Ponce De Leon Avenue was staffed by seven executive managers and their secretarial staff.
Each manager was responsible for a different
group of countries. They told me I was one of nineteen job applicants and was chosen for my articulate language skills which really meant my Spanish was good enough to do daily business with some fifteen major distributors in Latin America.
I was assigned to the Caribbean territory
group of distributors since I had already visited those countries in the Coast Guard and was familiar with the many odd quirks and laid-back pace of island culture. Only Mexico works slower than the Caribbean. Robert York was the honcho in charge of all the managers and he reported directly to headquarters in Syracuse, N.Y. 192
I reported to the VP of Marketing for Latin America - a guy named Bill Stowe who was extremely savvy and knowledgeable about international trade, an area in which I was totally lacking real hands on experience. I was told that I'd be traveling extensively throughout Latin America and that was exciting to me.
I must have been about 28 at the time and was the
youngest guy on the executive staff by at least five or six years.
But my first overseas assignment would turn out to be my last. I was sent
to
Jamaica
to
meet
with
our
local
distributors
Conditioning located at 85 Hagley Park Road in Kingston.
CAC
Air
It was only a
three day trip and they put me up at the Pegasus Hotel in New Kingston. explore
My mission was to evaluate their inventory situation and the
possibility
of establishing
a room
air conditioning
manufacturing facility on the island.
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Almost any major business on the island of Jamaica is owned
either
by
Butch
Stewart (most notably known as the owner of the Sandals Hotel chain and Air Jamaica) and the
Matalon
whose
ICD
owned
CAC
family
corporation and
the
bauxite mining operation in Jamaica amongst other enterprises. Both entities were multi-millionaires clout.
at the time and wielded great political
Vernon Matalon and his son Paul were the ones I met with
along with their CAC General Manager Keith Hobbs and Director of Operations Mac McCullough, quite well and attentively.
both of whom greeted and treated me
They ran CAC efficiently and profitably. In
short, I was very impressed with their operation.
At this time in history Butch Stewart also owned and operated a local factory that pumped out Friedrich room air conditioners (RAC) whose prices
Carrier
manufactured
simply locally.
could
not
We also
compete
with
had to compete
unless with
we
too
Daikin, a
Japanese company which produced a very energy efficient RAC unit that was
popular
in the islands
due to the
prohibitive
costs of
electricity. Although Carrier sold over 80% of the big commercial and industrial
units in the
Carribbean,
our market share
market was shameful, at least in my opinion.
of the RAC
If I recall correctly, we
had less than a 40% market share.
In my free time I played tourist and took in the local sights, enjoying myself thoroughly.
Now being in the air conditioning business, I was 194
automatically making mental notes of what brand of room air conditioners were being used by local restaurants, hotels, shops, etc. and I was dismayed to see only one Carrier RAC for every twenty or so of our competitors.
This
only confirmed my assertion that we needed to
manufacture locally in order to really compete in that market segment. Carrier by far, makes the highest quality air conditioners and also the most expensive.
Like everything else in life, people get what they pay for.
Air conditioning was invented by Willis was
no longer
enough
Carrier,
but his name
alone
to remain ahead of the pack in this very
competitive industry.
On my last day at CAC's offices I was perusing their annual and quarterly sales reports and I was puzzled by what I found. buying large numbers of RAC units, over
CAC was
one million dollars worth
from us per quarter, but less than two dozen were in the warehouse. I certainly
didn't
see them
in the streets of Jamaica
McCullough where some 300 units went in one month.
and asked
Nervously, he
referred me to Keith, who casually informed me with his trademark grin, that he sold them in a package deal to a developer condos in Montego Bay. further.
building
It made sense to me and I didn't pursue it
I just hoped he'd sell even more and make me look good in
my new job.
We then traded ideas and comments on cutting costs
and inventory control before breaking for lunch.
There was a cricket
game in progress across the street from CAC that caught my interest so I went to watch my first cricket match. The game was somewhat like baseball and intrigued
me as a local vendor sold me a quick
lunch of jerk pork and rice, which I devoured
in the stands. The
surroundings were a far cry from any major league ball park, but were quite cozy with a fresh ocean breeze keeping all the spectators cool and fresh. 195
When I walked back to CAC after lunch, I realized I was the first to return so I loitered about the warehouse.
It was there that I noticed a
few dozen Carrier RAC boxes stacked up and strapped on pallets on a truck bed wrapped
in clear plastic.
I wondered
if that was how
Carrier shipped from the Syracuse factory so I walked over to check the shipping labels. What I found was disturbing. incoming
shipment
Havana, Cuba!
but an outgoing
This was not an
one, and the destination
was
The shipment was being sent to the Transportation
Authority of the Cuban government no less. There were about seven pallets and I checked the shipping labels of each were destined
for
Havana.
not surprised
Almost
Six pallets however had shipping labels for
a “Lt. Smith” at Guantanamo Bay. Needless but
them.
considering
to say
I was
shocked
the volume of RACs they had been
buying from us which was far more
than
market
the
could
Jamaican
ever
support.
There were four units on each pallet.
It was no big secret that Jamaican businesses did a thriving and quite lucrative trade with Cuba and never really honored the U.S. trade embargo imposed following Castro's coupe.
But U.S. manufactured
products
to
were
circumstances,
not
allowed
to
be
sold
Cuba
under
any
even indirect routes, according to U.S. federal law
and Carrier's distributorship agreements.
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But being new on the job, I opted not to say anything to Keith, Mac, or the Matalons until I could ascertain if the bosses in Coral Gables and Syracuse were aware of the illicit business.
After lunch we
chatted a bit and then I was delivered to the airport for my return trip to Miami.
We parted as friends and they were totally unaware
of my unexpected discovery. I could think of nothing else on my way home and pondered how I should breach the subject to Stowe and York.
This i s King Street in Kingston, about two kilometers from where I visited Carrier’s CAC office at 85 Hagley Park Road and found a half million dollars of room air conditioners to be shipped to Cuba in violation of U.S. federal law.
I remained silent for a few days thinking and hoping that there might be some explanation that I overlooked.
I sure as hell didn't want to
make accusations that would backfire in my face and make a fool of myself.
So I pulled out the sales records for CAC for the last two
years and discovered
they purchased well over $5 million of RAC
units, and then noticed that about 80% of them were ordered for 220 197
volts when all of Jamaica was 110 volts!
I called a local travel agent
and asked if they knew what voltage was used in Cuban residential, commercial, and office outlets.
The answer was not what I wanted to
hear - 220 volts.
I guess in retrospect, I should have just kept quiet, but doing so would in my mind, make complicit
to the illegal sales, and set me up to be a
potential defendant in a prosecution.
I argued with myself for yet a
few more days trying to figure out the best way to approach
my
bosses about this. Did they know? I wondered. How could they not? To be sure I had to ask. I went first to Bill Stowe about it and casually asked "Have you ever wondered how CAC is selling all those RAC units on an island stricken with poverty". He glanced at me knowingly and simply answered "No". As I searched for a follow-up remark, Bill made it clear that he was not going to entertain any, and excused himself saying that he had a conference call to make. It was now clear to me that Stowe wasn't even going to discuss the subject, so obviously he was aware of the situation.
198
Cuba’s famous Varadero Beach receives about 3 million tourists a year
It was still possible however for Bob York to be in the dark about it because he rarely had time to sit in on meetings let alone investigate sales to such a small market as Jamaica. His attention was saved for bigger priorities like the impending collapse of the Mexican economy and the like.
As the new kid on the block, I really did not command the
respect
of York's
attention,
and to corner
him on such a subject
would be very difficult for me. None the less, I had to try.
I waited
until day's end when I saw him packing up his briefcase alone in his corner
office.
"Excuse
me Mr. York"
Gorcyca, what's on your mind?
I almost
whispered.
"Yes
How was your trip to Jamaica?" he
asked as he chose to indulge me as he continued to sort through papers on his desk and placing more in his briefcase.
"Well that's
what I wanted to talk to you about Mr. York" There was silence so I continued
and decided to take a round about route to a subject I
suspected would be a touchy one. "I was going through some old CAC purchase orders and noticed they bought an awful lot of 220 volt RAC units."
After more silence he looked up at me for the first time
and replied "And?" as if he really didn't know.
"Well, what do you
suppose they do with all those 220 units when the whole island is wired for 11O?" This time there was no delay and no silence "Why the hell don't you ask them?" "Well I'm afraid the answer they give me might not want to our liking Mr. York."
"If it's the Cuba thing you're
getting at, I don't want to hear it and this conversation place - do you understand?"
never took
was his emphatic and final response.
Not wanting to lose my great new job, I made light of the matter and simply replied "No problem Mr. York" as I slid away back to office with all doubts now erased in my mind.
199
They not only knew about the Cuban sales, they now knew that I knew as well.
I wisely
chose
not to raise the subject again with
anyone from United Technologies. with
me and
continued
to
night. I could not let myself
But the
nag
matter
did
not sit well
my conscience, as I lay awake at
be part of this, no matter
how petty it
might seem to most people. I would not risk my job, but somehow, I'd put a stop to it and I decided to do so anonymously. The following day, instead of going to lunch, I went to a pay phone and called the local Miami office of the FBI and after I told the receptionist what I wanted to report, she transferred woman agent.
me first to a
I didn't identify myself other than as an employee of
United Technologies.
I didn't
even disclose
my trip but merely
advised her that what was going on and suggested that a stern letter to UT headquarters sales.
She
transferred
would probably put a quick stop to the Cuban
instead
suggested
me to another
I speak
to
someone
else
male agent, who expressed
interest and said he'd refer the matter to investigators
and
very little
at the U.S.
Federal Trade Commission.
I was surprised that the FBI would not
get
After
involved
themselves.
all
the
Trade
Embargo
was
established by executive order - a federal law, and federal laws are enforced by the FBI. I pointed this out to the agent on the phone who openly laughed at me but said he'd pass the information along to "people who cared about this sort of thing".
I'm not really sure what happened between the FBI and FTC but about five days later, some government agent came to the office and asked to speak with Robert York privately.
I was not privy to the
conversation but I could see that it appeared to be a friendly one when I went to make copies near York's office.
I asked
Maria his
secretary what was going on and she just shrugged her shoulders. 200
After the man left, York immediately summoned Bill Stowe into his office and closed the door.
They were in there together a good 30
minutes before the meeting ended.
I pretended to be preoccupied
and uninterested when in reality I would have given my left arm to hear what was said in that room.
Havana’s Malecon Waterfront i s a popular spot for locals to gather and socialize
The following day, Bill Stowe called me into the conference room and closed the door. "I have some bad news for you my friend" he began. "We're moving this office up to Syracuse to consolidate costs and your position here in Miami is being eliminated."
I was saddened by
the news and wondered if the Syracuse move story was genuine, or if in fact they realized I made some calls about the Cuban connection. Either way,
it didn't
matter,
I was given fifteen
days notice and
severance pay, and my dream job was gone as quick as it came. My girlfriend was angry with the news, but I never got past sad. Strangley enough though, in my last two weeks on the job, I saw a large order for RAC units to CAC canceled without explanation. Stranger still, the entire office closed
down
in about two months
and relocated to
Syracuse. Several of the staff opted to remain in Miami and forfeited their career with UT.
To this day, I still don't know what to believe
about the motives and reasons behind my termination and hold no 201
grudges against a fine company
whose Jamaican
distributor
may
have been a bit too zealous.
To be clear however, my anger over this episode was only one hyposcsry. There was a story carried in the Miami Herald newspaper of a Cuban who was arrested and jailed for trying to ship an air conditioner to his 70 year old parents in Havana. Yet when a huge Fortune 500 corporation does the same thing on a large scale for years, it is quite convenient for our law enforcers to just look the other way with a wink and a nod.
Truthfully, the blockade against Cuba is an injustice and only and outdated act of revenge that should have been stopped when Clinton moved into the white house. The United Nations agreed when 188 countries voted that the sanctions should be lifted in a record vote of 188 to 2 Only America, and Israel disagreed. The majority of the world was ignored. Worse still, all but one poll taken in the U.S. indicate that over 90% of Americans want to abolish the embargo and normalize trade with America’s neighbor. I was told by friends at a Clinton dinner in 1997, that it would not come to pass until Fidel Castro passed away. Our leaders are supposed to serve the will of the majority of citizen and not vice versa! Just look at the chart below and try to justify America’s stance on Cuba. It is morally indefensible and I would love to debate any Florida Senator on this issue who can’t live without his old Cuban voters.
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Polls of Americans over the years concerning sanctions against Cuba
Don’t be shocked nor surprised when China starts investing the billions of dollars to rebuild Cuba, as America could have been doing for the last 20 years. It’s ironic and shameful that citizens from Communist China can take a vacation any where in the world that they choose, but American citizens who allegedly live in a democracy, cannot take a two week vacation in Cuba without going through a third country to do it! Wealthy Americans visit Cuba illegally by the hundreds without any repercussions, but if John Q. Citizen from Patterson, New Jersey tries to do the same, he will be arrested. Why the selective justice President Obama? Stop the bullshit already and be fair everyone in the world and not just those who support your regime.
The people of Cuba did nothing to have their lives controlled and manipulated for 50 years by a foreign government. Further America’s intransigence at the United Nations is simply alienating what little allies and friend we have left in the world. I defy any American leader to explain how
203
the embargo on Cuba has helped America in any way over the last two decades. It is failed policy and one that 90% of Americans do not want.
The Cuba situation clear ly demonstrates the inhumane and mean-spiritless driven by America’s shadow government that simply want to send a message to the world that if you do not do what America wants, you will suffer. Frankly President Obama, other countries need to please their citizens, not the United States of America. If you had any sense of ethics, you also would listen to the voice of Americans citizens and not the paid lobbyists who gifts great vacation packages to half of our Congress. Stifling the progress of a sovereign people who pose no threat to America is inhumane, unethical, and beneath the dignity of the people you are supposed to be serving. Should you ever have the audacity to challenge the human rights issues of another country again, the world remain you of how you use Cuba for secret prisons and subject the citizens of that nation to commercial extortion of a nation you still want us to believe is free and just. Your actions as President betray all the words you ever spoke as a candidate. We the people are not fooled sir. You hear not the voice of insolence but the voice of the American conscience which has had enough of your smoke and mirror deceptions. – almost as bad as your predecessor.
© Cpyright 1995-2014 By Bruce A. Gorcyca – All Rights Reserved
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