Tuesday, May 22, 2012

Romney-Bain-Ampad -Union Strikes Begin with Romney Run Against Kennedy – Union Refuses to Negotiate – Plant Closes – Romney Left Bain: 1999


The Results from a two decade period on Ampad, Romney and the International Paperworkers Union - result 13 articles - beginning with Romney's Run against Ted Kennedy

The attack ads in this particular general election beginning with the GOP Primary and now heating up for the General, as Obama begins to attack the Presumptive Nominee, Mitt Romney, are not exactly forthcoming with “details” that would make anyone hesitate as to the accuracy of the ads. Specifically since the timing of both the strike in Marion Indiana, and the 1994 Senate Campaign is somewhat suspect. According to the Springfield Republican

”Randy Johnson, a union worker at Ampad, spoke to reporters about Romney during the primary campaign. Johnson will be speaking to reporters again Monday on a conference call organized by the Obama campaign.
According to a release announcing the call, the Obama campaign will argue that “Romney’s business values put short term profit for himself and his investors ahead of long term growth for the companies he bought and sold – destroying some of the communities where he and his partners invested.””
(One Problem)
Romney’s role, however, is somewhat more complex than the Obama video shows. USA Today reported that Romney was on leave from Bain when it purchased SCM Office Supply – and was not involved in managing Ampad. Romney left Bain Capital in 1999, right before Ampad’s bankruptcy. (Ampad emerged from bankruptcy in 2003 under new ownership.)


Therefore, on the one hand, Bain Capital made an investment in a company – which Romney had no process in the decision making as he was on leave to run a Senate Campaign, the company was purchased, and suddenly – there’s a strike.
In fact, looking at articles from the Indianapolis Star, beginning in 1979 and ending in 1995, the keywords: Ampad, United Paperworkers, and finally Romney, in three sets of queries pull only 13 articles, the oldest: “Labor Problems in Marion Strike Massachusetts Race”, (Oct. 8, 1994) the balance of the articles report on the Union going out on strike, refusing to accept compromises, and finally, that employees were hired back (a point left out of most articles and the Obama video.)
From the Indianapolis Star, (article archives: Author: Peter Key, published in Business, Jan. 5th 1995)




” The announcement came less than a week after a last-ditch mediation attempt by Gov. Evan Bayh's office failed to resolve the dispute between Ampad and United Paperworkers International Union Local 154, which has been on strike at the plant since September. Randy Johnson, a vice president with Local 154, said he wasn't surprised by the company's decision.
"I really believe that they intended to have it their way or they were going to pull out," he said.
(Referring to)
Ampad Corp. said Wednesday it will close its Marion, Ind., factory Feb. 15, ending a labor dispute that has raged since the Dallas-based company bought the paper- products plant in July.”


Therefore, Once Bain, without Romney nearby, bought the plant in Marion, the Union went out on strike, and somehow it affected the Massachusetts race, in the end, the Union refused to compromise, even with Evan Bayh’s intervention and the end result was a closure of the plant due to the Union.

Romney, who had been contacted during the campaign against Kennedy by Mr. Johnson, Professional Union Organizer (not rank and file), and Romney faxed over a letter –the copy is below. In this letter Romney speaks to the steps he took to try and rectify the situation even though he was not part of Bain, and that it all boiled down to the Union’s choice to stalemate.

This particular story of Bain and Romney was first brought up in the 2012 GOP Primary – which was rugged to say the least, and although it’s already old news, the Obama campaign has decided to go ahead and use the material – one has to wonder what else they’ve got? Anything?

For additional sources see Indianapolis Star Archives 13 articles – three in particular headlines below::
Ampad strike mediation fails to resolve stalemate, Indianapolis Star, December 22, 1994

Companies battling strikes cut 572 Indiana jobs Strikebound Ampad plant will be closed next month Indianapolis Star - Indianapolis, Ind., January 5th, 1994

And
Ampad workers vote to reject company's final contract offer Indianapolis Star - Indianapolis, Ind. Dec. 22, 1994

Therefore, it is no wonder that the Obama Campaign is facing criticism from Democrats (Democratunderground.com)in attacking Romney on this issue. Of course, it did not work well for one Newt Gingrich, either – again – that documentary, although hard on the Romney Camp, it quickly became old news, and the media cast Newt Gingrich as the villain for unjustly attacking Mitt Romney.

One would think the Obama Campaign might have done a bit of checking round to see if there was any credibility to the Gingrich (PAC not Campaign) video, and b)what happened as a result, before rolling out Randy again.

Apparently not:

An image of the fax Mitt Romney personally sent to this Randy Johnson (click to enlarge) – offers the appearance of Mr. Johnson as political operative, while Romney does his best to explain. According to the Springfield Republican, Mr. Johnson will be holding a press conference today, apparently to rehash the problems he had with Romney in the Marion IN Ampad situation. Will the media ask Mr. Johnson, why he as a union boss, used the Marion plant, and subsequent strike in order to protect Ted Kennedy in a senate Race in Massachusetts.


Fax from Romney to Johnson: image Business Week (Click to Enlarge)


(Kennedy later used the Marion – Bain – Romney connection to effect in the 1994 Senate Campaign).

It could all be coincidence of course, however, unions will err on the side of politics, rather than what might be best for the rank and file.

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