NEBRASKA BLUE

There will be much written about Tony Raimondo’s Democratic bid for the Senate seat in Nebraska. Most of the talk and gossip is of Raimondo’s failed attempt at the Bush adminsitrations “Manufacturing Czar” position and lifelong Republican membership and possible Senate run…..

[More:]

True, Tony didn’t get that seat, actually he withdrew when John Kerry called him “Just another CEO outsourcing jobs to China while laying off American workers". Yes, John Kerry was running for President at the time and Yes, Raimondo had been tapped personally by the Bush Administration for the position. These two things together proved caustic to the public and the media.

Tony did in fact layoff workers at Behlen shortly after announcing plans to open a manufacuturing plant in China. He also saved some jobs by reducing shift work to less than a 40 hour week and reducing salaried pay by 10% until things improved.

On the surface these decisions seem in line with being a fair and equitable CEO. He kept people employeed and working in Nebraska instead of locking the doors and sending the whole business to Mexico or China. But, like everything else in this world there is always a backstory, a history….

(reprint from Dave Sund)

Raimondo is “a longtime boardmember of the National Association of Manufacturers,” a group that is notorious for opposing efforts to improve conditions for American workers. NAM has lobbied to strip 8 million workers of federal overtime protections, consistently opposed any effort to increase the minimum wage to keep up with inflation and fought workplace safety laws.

According to the business publication Inc. Magazine, shortly after Raimondo took over Behlen in 1982 he pushed hard to decertify the labor union operating at his company.
Raimondo coached management to sweet talk likely union supporters just prior to the vote and, on a close vote, was able to bust the union. Later, Raimondo said that had he not been able to get rid of the union he was not sure he would “have had the courage or determination” to continue operating the company.

Under Raimondo’s leadership Behlen has been accused by the federal government of
maintaining unsafe working conditions. On 5/16/98 The Omaha World-Herald reported “the Occupational Safety and Health Administration has proposed a $123,000 fine against Behlen
Manufacturing Co. of Columbus for alleged safety violations that resulted in an employee being injured.”

On 2/7/01 the Omaha World-Herald reported “Bush was meeting with Nebraskan Tony
Raimondo and dozens of other small business executives as part of his weeklong effort to build momentum for his tax package.” Raimondo was a natural ally - he had twice given the maximum contribution to Bush’s presidential campaign. The tax cuts Raimondo supported will cut the taxes of a middle class manufacturing worker (making about $35,000year) $560 next year. Meanwhile the top 1% of earners (who make, on average, about $1 million a year) will rake in over $41,000 because of the tax cuts.

Truth be told, Raimondo has been like every other CEO in the last thirty years. The formula for success in American Manufacturing (since the 80’s anyway) has been:

1. Bust the unions if they exist

2. Reduce Wages,tell employees if they want to keep their job from moving abroad they need to give up wages and salaries.

3. Convince employees they are shareholders in the organization and that they will profit, in the long term ,for sacrifices made now.

4. Maintain an environment of fear and uncertainty

I believe CEO’s could make good politicians if you want your country run like a cut throat business and are on the board of directors of one or more multi-national companies. However, governance, in a democracy, and business are largely mutually exclusive. Governance in a Democracy should denounces subjugation and class entitlement not encourage it. You can’t have the minority(shareholders)recieving 90% of the profit while the majority(workers) get the leftovers.

Raimondo has not won me over. I have a hard time wrapping my mind around a candidate for the democratic nomination who has throughout his life has exhibited the traits of a corporatist.