Private-Equity ‘Vampires’ Run Into A Wall Of Worker Resistance
At the peak of the Great Recession in 2008, General Motors was bailed out by U.S. taxpayers and survived. Bail-out money in hand, GM sharply increased its production in China and other low-wage nations on its way to recovering its past heights of profitability. But back in Janesville, Wisconsin, GM closed its plant, costing an estimated 9,000 jobs and widespread social misery that has not abated.
And now Janesville finds itself again at the mercy of another far-off corporation. OpenGate Capital, a Los Angeles-based private equity firm, is planning to close the 120-year-old plant of a company named Hufcor Inc., wipe out about 160 jobs, and ship them off to Monterrey, Mexico.
Hufcor has been an established, familiar fixture in the community, and workers are intent on keeping it that way.