Early Bain-ization...How a Few Got Rich Illegally Suppressing Unions

[xchrom]

http://www.nationofchange.org/early-bain-ization-how-few-got-rich-illegally-suppressing-unions-1345295917

***SNIP

A Financial Times Investigation

In FT investigation: Romney’s take-off the Financial Times (FT) investigated the $5 million buyout of Key Airlines, a "formative" deal from Mitt Romney's company Bain Capital's early years.

At the time Mitt Romney was at the consultant firm Bain & Company, and heard that Key Airlines was looking to be bought. Key Airlines had a $10 million per year government contract to shuttle pilots and support workers between Las Vegas and "Area 52," where they were working on the then-secret F-117A stealth fighter. Romney formed Bain Capital in part to buy the airline. T. Coleman Andrews III, a former White House official recruited to Bain by Romney led the buyout for Bain and chaired its board of directors.

The Financial Times investigation showed how the purchase of Key Airlines helped establish the company's method of doing business. They bought the company by borrowing all the money needed, 100% debt-financed, meaning Romney and Bain put up no money -- and very little risk -- of their own. They "restructured" the company; according to FT, "Bain also reshaped Key Airlines, turning it from a profitable, taxpaying company with a $13m balance sheet and its own aircraft, into an operating company with a $2m balance sheet and a holding company from which it sold assets separately."

When the pilots tried to start a union, the company unlawfully suppressed the effort with what a federal judge called "blatant, grievous, wilful, deliberate and repeated violations."

[JDPriestly]

1. Recommended because it briefly explains how leveraged buyouts work.

The explanation is not very complete, but at least people will get the idea.

It seems strange to me that businesses want to organize and work together under the auspices of the Chamber of Commerce but want to thwart employees' organizing and working together in unions.

Why should businesses enjoy freedom of association and the right to lobby and negotiate as one but workers should not enjoy those same rights?

[xchrom]

2. ...

[nashville_brook]

3. well said!!

simple, direct and to the point.

[xchrom]

4. I'll give this 1 kick. Nt