June 22, 2012

The Washington Post Says Mitt Romney Outsourced Jobs….Or Maybe Not

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Glenn Kessler of the Washington Post dings the Obama campaign today for claiming that Bain Capital “shipped jobs to China and Mexico” while Mitt Romney was CEO:

Upon hearing this ad was under consideration for a tough rating, the Obama campaign supplied reams of additional SEC documents regarding Romney’s ownership in Bain after he left for the Olympics, most of which we had examined previously when we first looked at this question. The campaign also supplied SEC documents showing that two of these companies, Modus and SMTC, as well as one called Stream International (a predecessor of Modus), earned money in part by helping other companies subcontract work overseas. Some of this business predated Romney’s departure from Bain, but thus far it seems a slim case for this particular ad.

Twelve hours later, Tom Hamburger of the Washington Post filed a story suggesting the case isn’t so slim at all:

A Washington Post examination of securities filings shows the extent of Bain’s investment in firms that specialized in helping other companies move or expand operations overseas.

….Bain’s foray into outsourcing began in 1993 when the private equity firm took a stake in Corporate Software Inc., or CSI….Two years after Bain invested in the firm, CSI merged with another enterprise to form a new company called Stream International Inc. Stream immediately became active in the growing field of overseas calls centers….By 1997, Stream was running three tech-support call centers in Europe and was part of a call center joint venture in Japan, an SEC filing shows.

….The corporate merger that created Stream also gave birth to another, related business known as Modus Media Inc., which specialized in helping companies outsource their manufacturing….According to a news release issued by Modus Media in 1997, its expansion of outsourcing services took place in close consultation with Bain.

….Another Bain investment was electronics manufacturer SMTC Corp….The company said that communications and networking companies “are dramatically increasing the amount of manufacturing they are outsourcing and we believe our technological capabilities and global manufacturing platform are well suited to capitalize on this opportunity.”

So who’s right, the Washington Post or the Washington Post? I excerpt, you decide.

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