Is Mitt Mean?
Just ask the 200 people who lost their jobs, when Mean Mitt closed down SCM office supplies.
Back in 1992, Bain acquired a manufacturer called American Pad & Paper, or Ampad. Bain then used Ampad as a vehicle to buy and restructure similar companies. Following standard “roll-up” strategy, Bain closed factories and laid off workers in anticipation of selling off a leaner, more profitable company via an initial public stock offering.
Bain-owned American Pad & Paper bought SCM in 1994, only to cut wages and benefits before closing the Marion plant a year later. Over 200 workers lost their job.
By 2000, Ampad itself was declaring bankruptcy, while the Romney-led Bain and its investors had reaped over $100 million in profits.
“To me, Mitt Romney takes from the poor and the middle-class and gives to the rich,” one former SCM employee
Two years into the roll up, Bain had Ampad acquire an office supplies plant in Marion, Ind., a manufacturing town 70 miles northeast of Indianapolis. At the time, Johnson worked the night shift making hanging files. “We come back from the July 4th holiday, and this is what we find posted,” Johnson says, producing from the Romney box a one-page notice: “As of 3 p.m. today, July 5, 1994, your employment with SCM Office Supplies Inc. will end.” Most of the 258 employees were allowed to reapply for jobs at reduced wages and benefits. Johnson’s pay fell 22 percent, he says, from $10.05 an hour to $7.88. Dismayed to see their old union contract torn up, the Marion workers negotiated with Ampad management for several months, then called a risky strike. In early 1995, Ampad called the union’s bluff, closed the plant, and laid off the remaining workers.
“None of what happened in Marion in the 1990s would be very interesting,” Johnson notes, “if Mitt Romney had not built his entire political career on the claim that he’s a job creator.”
We don’t have Wall Street CEOs writing us $5 or $10 million checks!
Please consider contributing…
- Obama: Here comes Ampad (firstread.msnbc.msn.com)
- This Week Obama Will Shred Romney Over Private Equity (businessinsider.com)