Monday, January 7, 2013

Vulture Capitalists Close Golden Guernsey - Teabillies Blame Union & Obama

The sudden closing of the Golden Guernsey dairy in Waukesha on Saturday was met with an interesting - but predictable - reaction in some corners of the state.

Dairy workers who showed up to work on Saturday were told they need not stay and by the afternoon the gates to the plant were locked.

The closing impacts not just approximately 100 plant workers, but also dairy haulers and a whole lotta schools that serve their milk to students across the state. The Wisconsin Department of Workforce Development said they were unaware of the closing - odd, since companies are required by state law to give 60 days notice of a shutdown or mass layoff.

Workers who are required to receive 60 days severance pay were met by a padlock instead of a paycheck.

Naturally, Barack Obama and the unions are to blame.

See in 2011, Dean Foods owned the dairy was forced to sell it under an anti-trust agreement. It seems it was determined that Dean had a monopoly over the school milk supply in Wisconsin, Minnesota and Illinois. Why? Because they were the only supplier for the 3 states - which is also known as a MONOPOLY.

Public funds are supposed to spent through a bidding process so that thrifty taxpayers know their money is subject to some kind of oversight.

And was this anti-trust bargain instigated by Barack Obama? Hell no. It was Wisconsin Republican Attorney General, J.B. Van Hollen.

The vulture capitalist group, Open Gate Capital, purchased the Waukesha dairy and added it to their long list of company acquisitions in which they had no experience running - but got for a good deal. Wisconsin was quick to toss in tax incentives for every person they hired - which according to the Walker administration is how you grow jobs right?

Not so much.

Clearly if the government had not interfered with Dean's monopoly in the school milk industry - none of this would have happened. Although it seems like Open Gate got a pretty sweet deal, so what could have gone wrong? It must have been the greedy unions!

Except there were no labor issues at Golden Guernsey. No strikes, no labor fact the union was just as blindsided by the closing as Workforce Development.

There has been no confirmation on how much money Open Gate Capital borrowed against Golden Guernsey - we'll find out in time when they sell the plant back to Dean Foods. The workers will have lost their jobs and probably their pensions in the process - no doubt Open Gate has already drained those funds.

The illegal closing of Golden Guernsey will wind it's way through the courts and maybe someday the workers will get the 8 weeks of pay they are owed.

Teabaggers will continue to blame the immoral business practices of venture capitalists on government regulation and the unions as if anyone could possibly trust free market enterprises like Open Gate to do the right thing.