Tuesday, July 17, 2012
New Mexico Got Bain’d, too: Romney took $2.5M in NM Taxpayer Funds to Outsource 1,100 NM Jobs
From ProgressNow New Mexico:
Mitt Romney's Bain Capital duped New Mexico more than a decade ago when it set up a Silver City call center, promising more than 1,000 local jobs, only to have it close just two and half years later in a wave of off-shore outsourcing, laying off almost 800 middle-class workers and taking New Mexico taxpayers for more than $2.5 million in the process.
ProgressNow New Mexico recently reviewed the record of Bain Capital in New Mexico and discovered that Romney’s Bain Capital bought Stream International, a Chicago business services company, just as the company was in the midst of a large US-based expansion. One of those expansion sites was Silver City where Stream promised to create more than 1,100 full-benefits career track local jobs in Grant County.
Among the findings:
- New Mexico taxpayers provided Bain with more than $2.5 million in free rent and job training to lure the company to Silver City
- The company promised to create more than 1,100 career track jobs for Silver City
- As Bain was telling New Mexico it was creating long-term jobs, it simultaneously stopped US expansion and rapidly expanded overseas with new facilities in Spain, Canada, Ireland and France.
- When Bain sold Stream and its Silver City facility just over two years later, the company was positioned for the new buyer to transfer all of its jobs overseas.
- Just two years later, the new buyer suddenly closed Streams two large US call centers, laying off more than 800 in New Mexico, and told a newspaper the jobs were likely going overseas.
In their short tenure in New Mexico, Bain Capital took more than $2.5M in free rent and taxpayer-funded subsidies to fund the building of foreign call centers which would house the jobs those funds were supposed to create in New Mexico.
“In Silver City, Bain created almost a thousand American jobs just to siphon the profits from that work to build overseas facilities where our jobs would go to die,” says Pat Davis of ProgressNow New Mexico.
“What Mitt Romney and Bain did to Grant County is unconscionable. They told those people that they were building life-long careers, all the while knowing they were taking their taxpayer-subsidized profits to move our jobs overseas.”
This should be enough to finish Rmoney off in NM. I guess SM won't be his running mate. Also.
Posted by: bg | Jul 17, 2012 8:57:38 PM
Good reporting but you missed the fact that newly elected District 14 Senator, Michael Padilla was the executive director of the Stream call center in Silver City. It appears there are always those opportunists who play both sides of the fence as long as they get paid.
Posted by: e.d. | Jul 18, 2012 10:46:40 AM
I worked at that call center in Silver City--I was one of the first 20 employees. The center opened right after a round of layoffs at the local copper mines, and the jobs were billed as alternatives for that workforce and for others in the community. They trained teens, middle-aged folk and even some seniors.
I left before Stream pulled out, but I heard they cracked down on union organizing. After the pullout, the town tried to justify the tax breaks by claiming the building was built out for any kind of high-tech operation, but it sat dormant for many years.
Stream had calls centers in Oregon, Montana and Arizona at the same time as in NM, but it seemed like it was a constantly moving operation: find a place that would offer tax breaks (Silver City had to compete for the jobs, of course), and when those tax breaks expire move on to the next place. Beaverton, Kallispell and Chandler all shared the same fate, I believe.
Posted by: Avelino | Jul 18, 2012 1:59:53 PM
Do we tink stealing $2.5 million from NM taxpayers is bigger or smaller govenmen? NM has a habit of getting into deals to bring jobs and end up holding the bag when the companies either go belly up or just leave. We don't seem to get a Dow Jones report or S&P report. We need to be smarter. Interesting info on Sen. candidate Michael Padilla. I do not know Mr. Padilla but was a little disturbed to see him picured with Bishop Sheen. Padilla's statement about their meeting they discussed many issues facing NM. I would think a woman's right to choose might have been one of the issues discussed. I sincerely hope that Padilla isn't going to vote the bishop's agenda. If he is then let's call him Brother MIchael and not Senator Michael. I am not Catholic and don't come under the Bishop's authority. The Bishop, in my opinion should not be lobbying the legislature,
Posted by: Stephanie DuBois | Jul 22, 2012 11:38:15 AM