Mercury Rising 鳯女

Politics, life, and other things that matter

Posts Tagged ‘Bain Capital’

Mitt Romney Profits From Sensata Workers’ Pain, In China And America

Posted by Phoenix Woman on October 22, 2012

This is something Mitt Romney is hoping doesn’t get broadcast to most Americans:

Republican presidential candidate Mitt Romney started the “private equity” firm Bain Capital. Bain Capital makes its money by purchasing companies using “leveraged buyouts” that borrow huge sums using the purchased company’s own assets as collateral. They often use part of the borrowed money to immediately pay itself. Bain then cuts costs by doing things like sending jobs to China, cutting wages and manipulating tax rules to cut taxes owed, along with standard big-business practices like consolidating business units, taking advantage of economies of scale not available to smaller competitors, squeezing distribution channels for price cuts, and other practices that bring competitive advantages. (Please see So DID Mitt Romney Really “Create Jobs” At Staples? for a look at how this works.) Then, after reorganizing the purchased companies Bain “harvests” them for profit. (“Harvest” is Romney’s word, watch the linked video.)

Bain Capital purchased a sensor manufacturer that makes key components for our automobile supply chain, and named it Sensata. They immediately announced they closing a factory in Freeport, Ill., and sending the manufacturing and jobs to China to save money. (This is significant because China is engaged in efforts to dominate American auto supplies. See China Cheating Costs 400K Auto Parts Jobs and Why The Latest Trade Complaint Against China Matters. )

Bain/Sensata brought in Chinese workers and made the Freeport workers train them. Bain/Sensata is moving the equipment out of the Freeport factory and shipping it to China right now. The Freeport employees have set up a camp outside the factory that they call Bainport and are trying to stop the Bain trucks that are moving the equipment out for shipment to China. Supporters were arrested this week, trying to stop those trucks.

The Sensata employees have asked Romney to come to Freeport/Bainport and help them. Read on to learn about Romney’s response to the Sensata workers, and how Romney is actually making big money right now from shipping their jobs to China.

Of course, the Romney campaign announced that Romney would refuse to lift a finger to save the Freeport plant, much less assist the horrifically exploited Chinese Sensata workers who get paid the equivalent of 99 cents to $1.35 an hour, work twelve hours a day and seven days a week, and are
forced to live on site in the factory with no rights to speak of even as Sensata rakes in the cash and sticks American taxpayers with the bill:

Sensata enjoyed record revenues last year – this isn’t about making the “hard choices” necessary to save a failing enterprise. The workers in Freeport have been working 24 hours a day, in three shifts. They make $14-17 per hour, with benefits.

According to a report by the Institute for Global Labour and Human Rights, one of Bain’s first actions after buying Sensata was to set up “12 Sensata/Bain capital funds ‘organized under the laws of the Cayman Islands’ so as to avoid paying taxes.” They’ll get a small tax break for relocating the plant – the one Mitt Romney insisted did not exist during the first debate – and then use those offshore funds to defer taxes on some of the income the company generates.

American tax-payers, on the other hand, have paid $780,000 to retrain some of Sensata’s laid off workers in Illinois, according to the New York Times . One would be hard pressed to come up with a clearer example of capturing private gains while socializing the costs.

Instead, Romney campaign spokesman Curt Cashour tried to deflect the responsibility from Romney, Bain’s founder — the man who up to 2002 was the sole shareholder, owning 100% of the company per SEC filings) and a man who still gets a few million dollars a month from his Bain involvements — onto President Obama. Gee, how brave and principled of you, Willard. Not.

Posted in Uncategorized | Tagged: , , , | Comments Off on Mitt Romney Profits From Sensata Workers’ Pain, In China And America

Same GOP/Media Complex That Freaked Over Hillary’s Cattle Futures Barely Notices Romney’s $100 Million IRA

Posted by Phoenix Woman on July 15, 2012

Dave Johnson at Seeing the Forest makes a good point:

Back when Bill Clinton was President there was a huge media-swarm controversy because a decade before her husband was elected Hillary Clinton had made $100,000 over ten months by investing in cattle futures. Now, skip forward to 2012. Report after report circulates about a candidate for President who owns a secret company in Bermuda, Swiss and Cayman Islands bank accounts and an IRA containing as much as $100 million — and who may have filed SEC documents containing false information (a felony). Huge media swarm this time? Not so much.

As Johnson points out, the feeding frenzy against Hillary took place in the early and middle 1990s — mostly before the rise of the internet, in other words — yet online searches for articles on Hillary Clinton and cattle futures turned up over 350,000 hits; if all the stories written about this subject were put online, the total would likely be significantly boosted.

Those of us who have followed the story of conservative and Republican bias in US media are not a bit surprised by this. Earlier this year, to note a recent example, we saw the FAIR study showing that the guest lists of Sunday talk shows are skewed heavily in favor of conservative and Republican viewpoints.

Posted in GOP/Media Complex, Uncategorized | Tagged: , , , , , | 9 Comments »

I Am Mitt, Destroyer Of Jobs – Especially Non-Mormon Jobs?

Posted by Phoenix Woman on April 20, 2012

While Mitt Romney was grandstanding at a factory that shut down under Bush the Younger and pretending it closed during Obama’s tenure, this article appeared at Gawker:

Bain Capital, a job creating powerhouse established by America’s number one job creator Mitt Romney, is being sued by a group of people that claim they were fired for not being part of the Mormon church (LDS). This rogue group of secular sweat hogs were threatening the very foundation of ethics and morals Bain was built on. It was time to call out Romney Rooter and snake out these infiltrators of normalcy and make sure that the pains in Bain go mainly down the drain.

The filing can be seen at Courthouse News, which is where Gawker probably got the story.

Posted in Uncategorized | Tagged: , , , , | 1 Comment »

Romney “Left” Bain Capital? Do Leopards Change Their Spots?

Posted by Phoenix Woman on January 14, 2012

So far, the most explosive opposition-research attack of the 2012 Republican presidential primary has been this video, “When Mitt Romney Came to Town”, done by former 2008 Romney campaign member Jason Killian Meath, depicting — complete with interviews of the persons affected — the devastation wrought on a South Carolina town by the firm Romney founded, Bain Capital:

The folks at FactCheck.org don’t like the video very much, and their main beef concerns the KY Toys angle:

As we mentioned above, the former Massachusetts governor left Bain in February 1999, almost two years before the firm bought KB Toys in December 2000. (Romney still may have benefited from the transaction. In a retirement agreement he negotiated with his former partners, Romney has continued to profit from Bain’s deals.)

Even FactCheck.org feels obligated to mention that Romney still is profiting from what Bain is doing.

Furthermore, there’s not much evidence to show that the stories of KB and of the residents of Gaffney would have had happier endings had Mitt Romney stayed with the firm. Bain and Romney are still quite simpatico; as this Politico piece points out, Bain is Romney’s biggest backer. William D. Cohan, who had extensive dealings with Bain and with Romney at Bain, closes his Washington Post piece on Romney and Bain with these words:

The real Bain way may be nothing more than a clever tactic to eliminate competition from a heated auction in order to buy a business at an attractive price. After all, Bain Capital is seeking the highest returns for its investors. But Bain’s behavior also reveals something about the values it brings to bear in a process that requires honor and character to work properly. If a firm’s word is not worth the paper it is printed on, then its reputation for bad behavior will impair its ability to function in an honorable and productive way.

I don’t know if Bain Capital still uses the bait-and-switch technique when it competes in auctions these days (I’m told that it doesn’t). But that was the way the firm’s partners competed when Romney ran the place. This win-at-any-cost approach makes me wonder how a President Romney would negotiate with Congress, or with China, or with anyone else — and what a promise, pledge or endorsement from him would actually mean.

[…]

I have no idea how Romney might behave in office. I do believe, however, that when he was running Bain Capital, his word was not his bond.

It begins to look like Romney “left” Bain like Cheney “left” Halliburton and Jack Welch “left” NBC: There’s not much discernible difference in the “before” and “after” shots.

Posted in Uncategorized | Tagged: , , | 10 Comments »

 
%d bloggers like this: