Why Isn’t Mitt Romney Getting Hammered on the Bain-Sensata Story?Posted: October 13, 2012
I know everyone here has probably heard about the Bain-owned company Sensata Technologies, which is currently in the process of shipping all of its jobs to China. Mitt Romney has significant financial holdings in Sensata and in other Bain-connected Chinese Companies. Sensata workers have reached out to Mitt Romney repeatedly, begging him to use his influence to save their jobs, but he has ignored their pleas. Workers have now set up a tent city they call Bainport (see photo), and today they held a rally with workers who were laid off by a Bain-owned Samsonite plant in France. Here is the Bainport website.
FREEPORT, Ill. — French Samsonite workers who were laid off and robbed of their severance pay by Bain Capital will join Freeport Sensata workers for a rally at “Bainport” in Freeport, Ill., at 3 p.m., Saturday, Oct. 13.
The rally is in protest of Bain’s decision to close the Freeport, Ill., Sensata Technologies plant and outsource 170 jobs to China. The plant is set to close in November.
“We’re coming to Bainport to show our support for American workers fighting against the same economic model that destroys good jobs likes ours in France,” said Samsonite worker Brigitte Petit. “The struggle to save these Sensata jobs from outsourcing is a struggle on behalf of good jobs across the globe.”
Sensata Technologies, 2520 S. Walnut Road, Freeport, which was created by Bain Capital in 2006, develops, manufactures, and sells sensors and controls for major auto manufacturers such as Ford and General Motors.
Despite rising profits, the company plans to institute the final layoffs in November. The workers are training their Chinese replacements, who have been flown to Illinois by the company.
During the retraining, the American flag flying over the Freeport, IL plant was removed and replaced by the Chinese flag.
Romney has significant investments in Sensata as well as in other corporations in China; and he has gotten tax breaks from outsourcing jobs to China–including the Sensata jobs. Yet, during his debate with President Obama on October 3, Romney had the nerve to claim he didn’t know the U.S. gives tax breaks to outsourcers.
I simply can’t understand why the Obama campaign isn’t using this scandal to hammer Romney unmercifully. There has been some coverage of the issue in the corporate media, but not enough to reach all those low information voters out there. Ed Shultz has been talking about the issue over the past couple of days, and perhaps that will have an effect.
Although Romney didn’t make the decisions that led to the crisis in Freeport, he is still closely tied to Bain and does have influence over the company he founded. From the NYT, July 18, 2012:
There’s a plant in Freeport that makes sensors and controls for cars and airplanes. It’s owned by Sensata Technologies, a company that Bain bought in 2006, somewhere between four and seven years after Mr. Romney left the company. Last year, Sensata announced that it was moving the plant to China at the end of 2012 and laying off all 170 workers, and now those workers are asking Mr. Romney to intervene with his colleagues to save their jobs.
“If he wanted to, all he needs to do is call up the management of Bain Capital and say, ‘Look, don’t do this,’ ” one worker, Tom Gaulrapp, told Reuters.
Mr. Romney had nothing to do with that decision…. Nonetheless, Mr. Romney remains deeply tied to business decisions like this. As Bain’s founder, he established its business model, which is to wring the maximum efficiency from a company for the benefit of Bain’s investors, even if that means closing plants, shipping jobs to China, and laying off American workers. That’s how private equity often works, and Bain has done it many times before, sometimes to the benefit of a company’s workers, and sometimes to their detriment.
If Romney is elected president, I expect we’ll see a lot more of these kinds of stories. Jesse Jackson wrote an op-ed about Sensata and the Romney economic model a couple of days ago: A taste of the Mitt Romney economy
Mrs. Dot Turner has worked at what is now Sensata Technologies in Freeport, Ill., for 43 years. The company does sophisticated work creating sensors for automobiles. It enjoyed record profits last year. But not enough for its owner — Bain Capital — which is moving the jobs and the machinery to China….
The Sensata workers called on Mitt Romney — an investor in Sensata through his Bain holdings — to intervene. A group went to Iowa during the primaries to ask him to come to Freeport; they met with no success. Another group went to the Republican convention to ask him to come to Freeport; they had no success, either.
So, with the open support of Freeport’s mayor and City Council, the workers set up a “Bainport” encampment in the Stephenson County Fairgrounds right across the street from the plant. “Welcome to Bainport, a taste of the Romney economy,” reads one sign. “Romney does have a jobs plan; too bad it’s for China,” reads another. And Mrs. Turner and others began to make their voices heard.
“We are suffering from the Bain model of capitalism,” Mrs. Turner said. “This is the way Bain works. They take over good companies, and then ship their jobs to China to make even more money.
“So when I hear Romney talking about creating jobs, he’s saying one thing and we are experiencing another. He’s creating jobs, but the jobs are in China, not here. And now under Bain, Sensata plans to give the managers and the supervisors their golden parachutes, but not the workers. I’ve been here 43 years, and they offer a lump sum payment for 26 weeks of salary. And the lump sum means taxes will take a big part of it.” Probably a bigger part than Romney pays in taxes on his income.
“We’re getting the shaft all the way,” Mrs. Turner continued. “And we’re not going to take it quietly. We can fight for our jobs. We may not win, but we are in their face. You may roll over me, but I’m not going to shut my mouth while you do it.”
The United Steelworkers Union has just released a video about what is happening in Freeport.
A few more resources on the Bain-Sensata story:
Democracy Now covered the story last Wednesday: As Bain Ships Jobs to China, Bainport Protesters Arrested for Blocking Illinois Factory’s Closure
Campaign for America’s Future: Is This Why Romney Won’t Talk To Sensata Workers Whose Jobs Are Being Shipped To China?
Crooks and Liars: ‘When I Hear Mitt Romney Speak it Makes Me Sick to My Stomach’
NY Daily News: Romney’s ‘Bain’ in the Neck
Please spread the word about this in any way you can. I’ll have another post on Romney’s China connections soon. Use the comments to discuss this story or anything else related to the 2012 election campaign. Thank you for reading this post!