THe Teamsters attack Toys R US saying that they are selling unsafe toys. Do they provide real proof ? No. Do they have another agenda ? yes they are smearing Toys R Us and to scare parents because of issues the Teamster thugs have with the owner of TOys R US .
If it were up to the Teamsters all of the kids would be playing with Lincoln Logs and erector sets.
Hmm, maybe that's not such a bad idea?
Most Americans are profoundly disgusted by Wall Street, but few question the need for a healthy financial sector to promote economic growth. Businesses need credit to prosper, and prosperity is a fundamental goal of our society. That's why our government affords special protections, and guarantees and loans to the financial services industry.
But when financial services firms actually undermine our society's goal of economic growth, they should not be granted favors, privileges or protections. And now that tax season is over, it's a good time to remind people that private equity firms that destroy productive companies should not receive special tax treatment.
But they do. Private equity fund managers pay a much lower tax rate than ordinary Americans. A loophole in the tax law lets them treat most of their income as capital gains, and so they pay a 15 percent tax rate on those gains. That's less than half the 35 percent rate that ordinary Americans pay on income from their paychecks.
And that's wrong. Private equity firms don't deserve special tax treatment because they choke economic growth by wrecking healthy companies.
They do it by draining a company's cash so it can no longer afford to pay decent wages, buy new machinery, invest in technology or compete in the marketplace. Nearly half of all companies owned by private equity firms in 2009 were on the verge of collapse, default or insolvency, according to Moody's Investor Service.
The Teamsters have had plenty of experience with private equity firms, and it hasn't been pretty. Time and again, private equity firms have bought good, profitable Teamster employers only to devour their cash.
Kohlberg Kravis Roberts & Co.'s history with Teamster employers is one of underinvestment, stretching workers and equipment to the breaking point. KKR's pattern has been to kick to the curb the carcasses of what were once productive enterprises.
Here are some of the things witnessed at companies owned by KKR:
•After KKR and its partner CD&R bought U.S. Foodservice, Inc., in 2007, Teamsters drivers began complaining the company was pushing them to work 14-hour days in aging trucks. More than 1,400 warehouse and driver jobs were lost across the United States within one year. The company drew federal complaints for violations of almost 200 labor laws in Phoenix, which it settled by rehiring workers it had illegally fired. Discrimination lawsuits against the company are pending in four states.
•When KKR owned Accuride Corp., questions arose about whether capital investment had been adequate. In January 2007, a floor collapsed at Accuride's GUNITE Foundry in Rockford, Ill. A worker was found clinging to the top of a dust-collecting machine after the floor fell beneath him. In 2006, wheel forge presses at Accuride's Erie plant broke down, disrupting production. Less than 18 months after KKR exited the company, the shares were delisted.
•After its two-year stewardship of Dollar General, KKR announced that it would take the company public after appropriating $385 million in fees and dividends for itself and its partners - approximately half the value of the IPO. There were reports of continued serious safety violations during KKR's ownership of the company.
The House of Representatives recognizes the folly of rewarding such behavior. It first closed the tax loophole for private equity fund managers 2½ years ago and has done it again twice since then. President Obama also wants to eliminate the tax break. But the Senate has not voted on ending the incentive for greedy investors to wreck our economy.
If the Senate really wants to promote broad-based economic prosperity, it will close the tax loophole for private equity fund managers.
So, what really killed Tweet the Giraffe?
The Teamsters are ramping up their campaign aimed at taking down Toys R Us. The union famous for its horses’ head logo and thuggish tactics is teaming up with “environmental justice organizations, consumer advocates, public health professionals, parents, children’s health activists” to use the Holiday Season to attack giant retailer Toys R Us and Babies R Us for allegedly selling toxic toys. However, despite their shaky allegations, what may be really driving the union attack is the fact that Toys R Us is owned by private equity Kohlberg Kravis & Roberts (more commonly known as KKR).
It’s not the toys the Teamsters care about…
As far back as last April, Teamster boss James P. Hoffa was opining on KKR in the Huffington Post:
The Teamsters have had plenty of experience with private equity firms, and it hasn’t been pretty. Time and again, private equity firms have bought good, profitable Teamster employers only to devour their cash.
Kohlberg Kravis Roberts & Co.’s history with Teamster employers is one of underinvestment, stretching workers and equipment to the breaking point. KKR’s pattern has been to kick to the curb the carcasses of what were once productive enterprises.
After doing drive-bys at KKR-owned U.S. Foodservice and trying to muck up the opening of Toy Story 3 earlier this year, FoxBusiness notes ironically that the Teamsters and the group “are not going after Walmart, Sears, Target or other toy retailers.“
A Toys R Us source says it could be because of prior activities between the union and the retailer’s co-owner, Kohlberg Kravis & Roberts, a private equity concern with $54.4 billion in assets under management.
KKR is moving to take the Toys R Us public in an $800 million IPO next year.
The Teamsters union has long battled KKR for various labor practices at companies KKR owns stakes in, and for business practices the union feels will hurt its investments in its $100 billion pension and benefits fund.
The Teamsters didn’t return calls for comment. KKR didn’t returns calls for comment.
For example, KKR has been fighting the Teamsters’ attacks over its business practices at Dollar General stores, one of its biggest investments, as well as the union’s efforts to organize the U.S. Foodservice center in Tampa, reports indicate.
KKR co-owns U.S. Foodservice with Clayton, Dubilier & Rice, another private equity concern.
KKR has also been attempting to modify a Teamster labor agreement at a U.S. Foodservice location in Streator, Ill., reports note.
Meanwhile, Tweet the Giraffe is dead. Of mysterious causes.
That’s right, Toys R Us’ famously iconic giraffe tragically died last year on the Massachusetts set of “The Zookeeper.” According to People for the Ethical Treatment of Animals (PETA), Tweet’s death may have been caused by an overdose of blue tarp.
Just a month after PETA wrote to the cast and producers of The Zookeeper to warn them that the company supplying animals for the movie’s production has a long list of USDA citations, we have heartbreaking news to report. Tweet, a giraffe on the set who had also been forced to perform in Ace Ventura and a slew of Toys “R” Us commercials, has died.
Tweet collapsed in his pen while being fed on Friday. While giraffes in the wild can live into their mid 20s, Tweet was only 18 years old.
The results of Tweet’s necropsy haven’t been released yet, but according to awhistleblower who contacted PETA, Tweet’s premature death may have resulted from his eating pieces of the blue tarp that covered his enclosure. The whistleblower alleges that Tweet’s owner and trainers were notified that the giraffe had been eating the tarp but that they did nothing about it.
It is interesting to note that (according to this charge filed with the National Labor Relations Board [in PDF] the notorious Teamsters Local 25 was also on the set “The Zookeeper.”
A decade ago, Teamsters Local 25, with a tough reputation, including allegedly beating a woman, had all but driven the film industry from Massachusetts.
Much of the state’s poor reputation has to do with the controversies surrounding Teamsters Local 25, the union that provides transportation for the film and television industry. The union has been under federal investigation on a number of charges and has the reputation of driving up costs. Union member John Murray has been convicted of racketeering and extortion, and Teamsters officials have been sued for corruption and intimidation tactics. “Massachusetts has a terrible reputation in the industry — we’ve been fighting that for decades, for at least 15, maybe 20 years — and it came to a head recently with the Teamsters situation… a couple years ago,” says Moos. During the production of “Housesitter,” “stuff got broken, stuff went missing.” The situation was so bad that even the disappearance of a camera truck, probably not connected to the local Teamsters at all, became a Teamster issue in the eyes of Hollywood.
“A lot of people don’t want to have to come into the state and have to deal with the Teamsters,” says Kleiler. “And independent producers who get too high on the radar screen don’t want to have their tires slashed and things like that and have their windows broken, so people will go elsewhere to get their films made.”
While we can’t say for sure whether or not it was the blue tarp that did the giraffe in, one thing we do know for sure: The Teamsters’ targeting of Toys R Us has nothing to do with toys.
Footnote: No toys or giraffes were hurt in the writing of this post.
Most Americans are profoundly disgusted by Wall Street, but few question the need for a healthy financial sector to promote economic growth.
Quit buying the chit the Chinese are making and maybe Toy's 'R' Us will stop buying and selling unsafe toys. We keep buying their cheap chit, China keeps making their cheap chit and Toy's 'R' Us keep selling us China's cheap chit.
Simple.
If it were up to the Teamsters all of the kids would be playing with Lincoln Logs and erector sets.
Hmm, maybe that's not such a bad idea?
Nope .... it may make sense, but what you are trying to say isn't clear (to me at least - call me dense) ...... try it again ......What if we made things here like we used to, what would be the cost for say appliances or tvs or dvd players or what ever?
Doesn't anyone realize that what we used to make here is passed to other countries to make them cheap while our money is used in other areas. For example, even though people saved money, the banking industry didn't have high returns. Now we have retirement investments, other means to invest and get better returns and if the money was used for say, a tv at a US made price, there would not be the money invested.
I think that makes sense?
There you go trying to tell people what they can buy or not buy are you a parent? are you willing to pay higher prices for kids toys? its suppose to be a free country you dont like cheap products and want to pay more thats your choice, leave those that want to buy cheaper products alone, just because there cheap doesnt mean they are bad products
If you read in another thread I posted, I mentioned that I stopped reading after the author wrote, "I tell you this because every single American has a right to know." Typically when someone has to tell you that, they either do not know what they are talking about or they are trying to propagate a lie.
The same premise goes with when someone who says, "You can't tell people what to buy(do)." or "It's a free country, you can do whatever you want."
With that being said, I'm not telling anyone what to do or buy, if you want to buy your kids cheap chit that China makes, more power to you. I don't buy toys from Toy's 'R' Us or WalMart. It's cheap, they are throw away items, kids lose interest in them within a week, then they clutter up the house. My kids are not going to have every little toy their hearts desire, its called moderation.
Take my best friend for instance, he has a 5 year old son that has every toy under the sky. I am not kidding you, as soon as you walk in the house you see nothing but toys and "stuff" for this kid. You have to walk around this kids "stuff" everwhere. I get over-stimulated in about 10 minutes, seriously, I can't take it and do everything I can politely to go outside.
It got so bad that they couldn't even DRIVE by WalMart because this kid would throw a tantrum if they didn't stop, that started at 3 years old.
So, I guess my point was, we as parents are responsible for our kids behavior and what we have is a generation of parents that feels the need to cater to every single whim and desire of their children. The Chinese are just supplying a need and the cheaper it is made the better, because us Americans will buy it up as long as they keep making "stuff". The Chinese can do it to, slave labor, low overhead, who cares what kind of dangerous toxins they use, as long as it is cheap, because we will buy it up.
Oh by the way, my boys will have Lincoln Logs, an Erector set, and just some plain old blocks for toys. That's just me though.
Bob, there have been a lot of issue with toys and other products having too much 'chemicals' that can harm kids in them.
The last one was glasses made for I think Burger King that has cadmium in it.
It is like the Brazil kitchen and dining products of the 80's where the glazing used contained so much lead it was killing the rats that they used to test the products with.
Americans are getting like Europe they want more money and benefits and to work less and less can you say lazy better check where those Lincoln logs and Erector and blocks are made??
By the way witness you seem to be the one acting like you know everything when you say you stop reading someones post after specific set of words