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Fri Aug 10, 2012, 06:55 PM

'I'm sick to my stomach': anger grows in Illinois at Bain's latest outsourcing plan

Source: Guardian UK

'I'm sick to my stomach': anger grows in Illinois at Bain's latest outsourcing plan

The Sensata plant in Freeport is profitable and competitive, but its majority owner, Bain Capital, has decided to ship jobs to China and forced workers to train their overseas replacements

............................

So as Sensata strips out costs by sacking American workers in favour of Chinese ones, the value of Romney's own investments could rise, putting money into the pockets of a Republican challenger who has placed job creation in America at the heart of his bid for the White House.

..............................

Bain bought the firm that was to become Sensata in 2006, when it was the Texan arm of a Dutch company. It then floated it on the stock exchange in 2010, but kept a majority stake. Sensata came to own the Freeport plant at the beginning of 2011 as part of a wider purchase of a car parts business from Honeywell.

Sensata spokesman Jacob Sayer said closing the Freeport plant to cut costs was a key element of the Honeywell deal. "If that had not been part of the strategy, then the deal would not have been so attractive," he said.

Read more: http://www.guardian.co.uk/business/2012/aug/10/illinois-workers-bain-outsourcing

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Reply 'I'm sick to my stomach': anger grows in Illinois at Bain's latest outsourcing plan (Original post)
kpete Aug 2012 OP
cantbeserious Aug 2012 #1
louis-t Aug 2012 #2
jmowreader Sep 2012 #34
Monk06 Aug 2012 #3
Gidney N Cloyd Aug 2012 #15
closeupready Sep 2012 #36
midnight Aug 2012 #4
zeemike Aug 2012 #5
trayfoot Aug 2012 #7
zeemike Aug 2012 #9
trayfoot Aug 2012 #11
zeemike Aug 2012 #16
SoapBox Aug 2012 #12
Liberalman777 Aug 2012 #6
Concordia Aug 2012 #13
freshwest Aug 2012 #22
sulphurdunn Aug 2012 #8
trayfoot Aug 2012 #10
heaven05 Aug 2012 #14
roseBudd Aug 2012 #17
Hotler Aug 2012 #18
dflprincess Aug 2012 #31
Occulus Sep 2012 #35
Hotler Aug 2012 #19
Vox Moi Aug 2012 #20
Igel Aug 2012 #27
sarcasmo Aug 2012 #21
Amonester Aug 2012 #23
pacalo Aug 2012 #24
Citizen Worker Aug 2012 #25
dkf Aug 2012 #26
Igel Aug 2012 #28
Uncle Joe Aug 2012 #29
mysuzuki2 Aug 2012 #30
Liberalman777 Sep 2012 #32
lovuian Sep 2012 #33
sarcasmo Sep 2012 #37

Response to kpete (Original post)

Fri Aug 10, 2012, 07:00 PM

1. Ruh Roh - What Goes Around Comes Around

eom

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Response to kpete (Original post)

Fri Aug 10, 2012, 07:01 PM

2. Key words: 'profitable and competitive'.

If this is true, they really have no excuse. How many other companies were actually profitable before Mitt got his mitts on them?

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Response to louis-t (Reply #2)

Mon Sep 10, 2012, 01:00 AM

34. If they were like most LBO victims...well, most of them

Mitt wouldn't have been interested in a truly troubled company because they probably couldn't afford to pay Bain's fees. He MIGHT have bought a company to close it if they had a product that would fit into one of his other companies, but as far as resurrecting a company that is in real trouble? No. No matter what Mitt says, he wouldn't have done that.

LBO artists have a different definition of "troubled company" than the rest of us. Most LBO victims were taken private because the stock was trading lower than the company's management wanted it to. Prime example: RJR Nabisco. The management of RJReynolds Industries merged their company with Nabisco Brands because Reynolds, even though it had many food lines (they owned Del Monte and the company that makes Hawaiian Punch), traded as a tobacco company. After the merger, they still traded as a tobacco company. So, because the RJR Nabisco stock price was seven times earnings per share rather than 22 times earnings per share, it made perfect sense to take the company private.

The thing is, RJR Nabisco was a very successful, very profitable company. Think for a minute: how many of their products do you have in your house? Maybe some Oreos, a box of Ritz, Animal Crackers, some A-1 steak sauce? EVERYONE uses at least a couple of the products that company makes. They could have soldiered on as a combined company and thrived forever...but because someone didn't like where the stock was trading, the world had come to an end.

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Response to kpete (Original post)

Fri Aug 10, 2012, 07:06 PM

3. What a political ad this will make. Romney can say he's no longer part of Bain til he's blue in the

face. It won't matter because he was the founder of Bain and invented it's corporate raider/off-shoring business model. Bain represents how Romney thinks, especially his attitude toward the American worker and voter.

As far as he's concerned American workers can fuck off and die.

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Response to Monk06 (Reply #3)

Fri Aug 10, 2012, 08:35 PM

15. Yup. Mitt created this monster.

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Response to Monk06 (Reply #3)

Mon Sep 10, 2012, 11:26 AM

36. I agree with everything you've said here.

It's very clear that this is precisely how Willard made his fortune. (In excess of what he inherited from his super-rich family.)

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Response to kpete (Original post)

Fri Aug 10, 2012, 07:12 PM

4. I thought I already commented on this post. G.E.'s CEO is Obama's job Czar and he is doing it too.

Wisconsin was home to some of G.E.production and thanks to Scott Walker we come in last for jobs creation... G.E. shipping badly needed jobs in Wisconsin doesn't help us either.... Bain sees all the other boys doing it, so like a copy cat-Bain follows suite.....


Those in Washington have got to stop expending our tax dollars for over sea's growth in jobs and war....

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Response to kpete (Original post)

Fri Aug 10, 2012, 07:17 PM

5. Well get used to it America

Cause this it the new America...where corporations are people that cannot ever feel patriotism and so they don't give a fuck about American workers...in their eyes you are slugs like Ayn Rand said...and the real people of worth are the investors in Bain....the job creators....and they will continue creating jobs in China unless you lower your wages to meet the China labor... and you may need to kiss their ass real good to get them back even then...and that is what they mean when they say competition is good.

We need a new business model.

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Response to zeemike (Reply #5)

Fri Aug 10, 2012, 07:24 PM

7. Well.....

I'm just a lower middle class person, highly educated, but spent my career in "public service".....I have a very hard time understanding WHY these people send our jobs overseas - don't they have ANY decency - ANY patriotism????? Why can't Congress do something to discourage this BS???

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Response to trayfoot (Reply #7)

Fri Aug 10, 2012, 07:41 PM

9. Decency has been educated out of these people.

No matter what business school you go to they will teach you that profit for the corporation is the only job the CEO has...and he has the duty to do anything to make that happen..and the if any one takes the regard of people or such human things into account they are not doing their duty to the stockholders....but they do stop short of telling them to commit crimes....although it is not for moral reasons.
And it was congress that repealed the laws that kept this in check...and I am sure they were handsomely rewarded for it.

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Response to zeemike (Reply #9)

Fri Aug 10, 2012, 07:51 PM

11. Yes, I see your point..

But I guess I just don't understand why people think "money" is the "be all and end all" of life! No, I didn't make the kind of money I could have, but that was not the most important thing to me - I wanted to help others get out of the hole. How much money does a person need?????

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Response to trayfoot (Reply #11)

Fri Aug 10, 2012, 08:35 PM

16. Sometimes I think that is learned behaviour too.

But I don't really know.
But how much money does a man need reminds me of a Tolstoy story...How Much Land Does A Man Need?
If you never have read it it is worth reading...I think it is on line...it is a short story but illustrates how these thing come to be in his own way.
Here.
http://www.online-literature.com/tolstoy/2738/

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Response to zeemike (Reply #9)

Fri Aug 10, 2012, 07:51 PM

12. Yup! "...greed is GOOD!"

Morals and shit can be for those that get fired.

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Response to kpete (Original post)

Fri Aug 10, 2012, 07:19 PM

6. Another Bain subsiduary is putting my sisters factory out

In Vandalia, Ill 170 jobs are being shipped to supposedly Indiana. However what does that matter if you are the one losing your job?

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Response to Liberalman777 (Reply #6)

Fri Aug 10, 2012, 07:53 PM

13. Vandalia

Oddly enough, I live in this town, and we've lost nearly all of our industry over the last 15 years. 170 people doesn't sound like much, but this is a town of only 7,000 and it's the largest in the county. The town's a sinking ship, just like hundreds of others in the middle of the country.

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Response to Concordia (Reply #13)

Fri Aug 10, 2012, 09:16 PM

22. Who do they see as the author of their woes? Can the workers buy the factory, do a co-op?

It sounds like this town, and for the same reason:



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Response to kpete (Original post)

Fri Aug 10, 2012, 07:36 PM

8. There are benefits to outsourcing.

Not only can you reduce labor costs, but the costs of relocating are deductible; lower foreign income taxes are deductible from American taxes and tax avoidance schemes requiring lawyers and accountants to fathom abound. All encourage outsourcing, and it is all perfectly legal thanks to the soulless cretins we send to Congress and the humanoid reptiles like Mitt Romney who own them.

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Response to sulphurdunn (Reply #8)

Fri Aug 10, 2012, 07:43 PM

10. Yes, and I can make a great argument

for socialism.....doesn't make it right or desirable. The almighty dollar is not the MOST important part of this equation! OK, I did read the last sentence, but it drives me insane that these "corporatists" get the best of our country and the best of other countries - NOT FAIR TO THE AMERICAN WORKER!

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Response to kpete (Original post)

Fri Aug 10, 2012, 08:32 PM

14. outrageous

this, if true is outrageous

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Response to kpete (Original post)

Fri Aug 10, 2012, 08:37 PM

17. DUers go out and spread this on Facebook, especially swing states eom

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Response to kpete (Original post)

Fri Aug 10, 2012, 08:49 PM

18. If the employees had any fucking guts....

they would all walk out and let the managers do the training, they're going to get fired any way. How bad does it have to get, how much more of a fucking are the workers going to take until they unite in mass and take to the streets and shut this country down for months straight.

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Response to Hotler (Reply #18)

Sat Aug 11, 2012, 09:21 PM

31. I'm sure they' like to

but if they walk off they probably won't be eligible for unemployment benefits. It's real easy for those of us not in their shoes to think they should take to the streets but when you're worried about feeding your family or keeping the roof over your head, it's hard to stand up and fight.

Our corporate masters depend on this.

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Response to Hotler (Reply #18)

Mon Sep 10, 2012, 10:42 AM

35. If they were smart, they would MIStrain them

Train them to do exactly the wrong thing in exactly the worst way.

We ALL should do this when training replacements from overseas. Sabotage the bastards. They deserve at least that much.

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Response to kpete (Original post)

Fri Aug 10, 2012, 08:50 PM

19. Are you sick enough to take to the streets in protest yet???? n/t

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Response to kpete (Original post)

Fri Aug 10, 2012, 08:55 PM

20. Training your own replacement ....

... has gotta be a mind-numbing and heart-breaking experience. Everyone will say that it is a Corporate Decision and everyone will say they are sorry to have to do this. Even Bain. The Bain-ality of Evil. This is a grotesque and demeaning and ultimately self-defeating practice that ought to be strung around Romney's neck like the albatross it is.
Many more people than at Sensata have gone through this and if holding this up to the spotlight to this won't save any body's job, it might let Sensata workers know that they have friends. Friends who are fed up.

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Response to Vox Moi (Reply #20)

Sat Aug 11, 2012, 03:08 PM

27. Yup.

Heart-breaking is probably a good way of putting it.

http://www.journalstandard.com/news/x1696238538/Honeywell-sells-Sensing-and-Control-unit-to-Sensata-Technologies talks about the original sale of the Honeywell-owned plants to Sensata.

It won't save their jobs. Sensata lost money in 2010 and the preceeding years. Even if it is making money now (which is what the article seems to be saying) it's not implied that the Freeport plant itself is making money. It's space is leased, and if most of the sensors really are shipped overseas it only makes sense (environmental and financial) to produce them closer to where they're used. After all, the current "good times" may not last and, if there's another downturn, Sensata would probably be losing money again.

I wonder who Sensata's customers are?

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Response to kpete (Original post)

Fri Aug 10, 2012, 09:16 PM

21. The Bain way.

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Response to kpete (Original post)

Fri Aug 10, 2012, 09:18 PM

23. Let's send this to barackobama.com

The Contact us link is located down the homepage under Campaign.

http://www.barackobama.com/


Surprise, surprise! (NOT)

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Response to kpete (Original post)

Fri Aug 10, 2012, 09:44 PM

24. This practice is a betrayal to American workers & I hope Obama exposes this to the hilt.

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Response to kpete (Original post)

Fri Aug 10, 2012, 10:15 PM

25. This was made possible by passage of the slave trade treaties. Passed by democrats and republicans.

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Response to kpete (Original post)

Fri Aug 10, 2012, 10:27 PM

26. So why don't the employees buy Bain out?

 

If Bain is going to shut down the plant anyway can't they get it at a nice price?

Then they can enjoy the risk and reward of owning their own company. They are already expert at running the place.



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Response to dkf (Reply #26)

Sat Aug 11, 2012, 03:11 PM

28. It's not being shut down.

It's not being liquidated.

In fact, it sounds like most of the output goes to manufacturers in China. It's cheaper to make the sensors near where they're installed in cars.

If the employees could buy it, it's likely Sensata would just start up a similar company in China. If not, they'd be asked to sell at the cost that Sensata could produce them for in China.

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Response to kpete (Original post)

Sat Aug 11, 2012, 03:15 PM

29. Kicked and recommended.

Thanks for the thread, kpete.

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Response to kpete (Original post)

Sat Aug 11, 2012, 03:59 PM

30. I wonder how many of those employees will vote republican.

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Response to mysuzuki2 (Reply #30)

Sun Sep 9, 2012, 01:56 PM

32. I wonder that too!

What exactly wuld it take for these people to wake up?

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Response to kpete (Original post)

Sun Sep 9, 2012, 11:55 PM

33. if a worker trains their replacement

they are STUPID
Bain is evil
he gives the worker Hope so they will train their replacement thinking they will get some good out of it

when they destroy themselves and there was no hope

it is the ULTIMATE EVIL

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Response to kpete (Original post)

Mon Sep 10, 2012, 11:38 AM

37. Being forced to train your replacement, insulting.

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