Showing posts with label DeVos. Show all posts
Showing posts with label DeVos. Show all posts

Sunday, December 02, 2007

British government seeks to close Amway

When DeVos was running for governor last year, supporters threw their weight behind him because they believed he could bring good paying jobs to Michigan like those at Amway, the company his father helped found and DeVos ran for a period of time. I wonder what his supporters think of this news from the London Times:
John Hutton, the Secretary of State for Business, Enterprise and Regulatory Reform, seeks to close the company in the “public interest”. [...]

The Government has claimed that the sales people were persuaded to join Amway on the basis that it provides “easy money” or requires “minimal effort”. It also alleged that the business’s primary aim was to recruit staff rather than sell products.
Those terms "easy money" and "minimal effort" are actually pretty flattering compared to what was recently said in court by Mark Cunningham, Queen's Counsel. I highlighted the pertinent descriptive terms.
The British subsidiary of one of the world’s biggest marketing groups was accused yesterday of breaking company law by “selling a dream” of unachievable wealth.

Amway, which had 39,000 selling agents in Britain during 2005-06, is “inherently objectionable”, operates as a lottery and is trading unlawfully, the Companies Court was told. [...]

The Government investigation claims to have revealed that just 10 per cent of Amway’s agents in Britain make any profit, with less than one in ten selling a single item of the group’s products. It claims that Amway’s main activity is encouraging other people to join its salesforce so that they pay the registration fee and buy marketing materials.

Mr Cunningham said that Amway attracted new agents, known as Independent Business Owners (IBOs), by offering “substantial financial rewards or easy money”. He said that promise of wealth was “illusionary” and amounted to “dream selling”.

The group, which has been operating in Britain since 1973, claims that agents can earn a substantial income from selling its range of dietary supplements, cosmetics, jewellery and water purifiers. They are also offered bonuses for recruiting other agents. However, an investigation by the Department for Business, Enterprise and Regulatory Reform showed that only 6 per cent of agents bought Amway products to sell on, the court was told.

Mr Cunningham said that the vast majority of products offered by Amway to its agents were overpriced even before they were expected to add a further 20 to 25 per cent for retail. “The unattractive pricing explains some the graver vices that are at the centre of the winding-up application,” Mr Cunningham said.

Agents were encouraged to buy instructions on how to grow their businesses by attracting new agents. The material contained images of success such as luxury cars, boats and foreign holidays.

Mr Cunningham told the court: “The prospect of substantial rewards and easy money has been at all times, and remains, illusionary.”

The investigation discovered that 71 per cent of agents made no income from Amway in the year 2005-06 and that 90 per cent had made a loss after paying the £18 fee to renew their registration. In fact, just 101 of the agents shared 75 per cent of the bonuses.

“The reality of being an IBO is that a substantial majority make minimal financial returns,” Mr Cunningham said. “Our case is founded on the selling of the dream on one hand and the loss or minimal financial return on the other.”

Mr Cunningham told the court that Amway operates a “pernicious” scheme, which encourages agents to recruit family, friends and colleagues to the group so that they themselves could move up to “that very narrow group that makes any money”.

He said that the Amway scheme involved targeting the “gullible”, “deluded” and “vulnerable” to join the scheme and accused the group of “dream selling.”
Those are pretty serious claims, but the Times provided numbers to support the reality behind those "good paying" Amway jobs:
  • 39,000 - agents working for Amway [in Britain]

  • 27,000 - (71%) had no income

  • 11,410 - (30%) earned something

  • 7,492 - (of the 11,410) received average of £13.53 [about $27] per year

  • 101 - agents received 75 per cent of bonuses

  • £116K - paid to top earner Trevor Lowe

  • 26 - number of years Mr Lowe was an agent

  • Of course, the DeVos family made out pretty well - they're worth billions of dollars.

    The case is still ongoing, but if the court rules against Amway, the company will be no longer be allowed to operate in Great Britain. Either way, this case just collaborates what citizens have been saying for sometime now - Amway jobs don't help people achieve the American Dream.

    (Cross posted at BFM.)

    Wednesday, November 07, 2007

    DeVos Loses Election

    Another year, another election loss for Dick DeVos. Only this time it wasn't in Michigan, it was in Utah, where DeVos' All Children Matter PAC put up $255,000 in seed money in 2004 to help the GOP legislature enact the most comprehensive voucher law in the country. A majority of Utahns saw things differently, and the voucher referendum went down in crushing defeat yesterday. More than 60 percent of the voters rejected vouchers.

    It wasn't from lack of trying that vouchers lost. DeVos was joined by other big-business donors from outside of Utah, including Wal-Mart's Waltons and Overstock.com CEO Patrick Bryne, who orchestrated much of the late funding himself. The Salt Lake Tribune editorial board called them "Friedmanites," whose stated goal is the privatization of American education. The pro-voucher group didn't hold back:
    The voucher crowd mounted a mean-spirited campaign that relied on distortions, dirty tricks, and personal smears. Their campaign of nastiness did not reflect Utahns' COMMON VALUES, our sense of common decency.
    In the end, having a common goal made the difference. Parents, teachers, unions and many excellent blogs examined all sides of the argument and presented their cases, and with the exception of one or two, all the major newspapers spoke out against vouchers.

    The victory is theirs today, but will scars remain? This blogger is concerned:
    And I hope that the real Utah can still be salvaged when this campaign by Parents for Choice in Education is over, when their money from All Children Matter in Michigan is all spent, when their money from the secret donors from Missouri and elsewhere in the county is run out, and when their political operatives and opportunitists have gone back to wherever they came from. They have dragged good people through a nasty political mess unnecessarily and I'll be glad to see them close up shop on November 7.
    We've been through the same voucher fight here in Michigan with the same results (voters resoundingly voted NO), so we can identify with that sentiment - we were happy to see them close up shop too. A word of warning though. The pro-voucher, educational profiteers may have been wounded, but they weren't stopped. Just ask Patrick Bryne, who had this to say to the Salt Lake Tribune today:
    Byrne said the referendum defeat may have killed vouchers in Utah, but "There are other freedom oriented groups in other states - African-Americans in South Carolina are interested in it."
    Be wary, South Carolina. Be very wary.

    UPDATE: Maybe DeVos should snap his wallet shut and call it a day. From One Utah:
    Vouchers didn’t win in a single county in the state. Not one. Think about that - in the most conservative, Republican state in the nation, after spending millions of dollars of Patrick Byrne’s money and piles of out of state money from the Amway and WalMart families, vouchers didn’t carry a single county.
    (Cross-posted at Blogging for Michigan)

    Thursday, November 01, 2007

    Decline in employer health coverage is pervasive

    Remember during last year's gubernatorial debate when Dick DeVos said, "The best way to get health care is to get a job?" Voters across the state laughed about that one all the way to the election booth (where they soundly voted against him), so this article from Reuters won't be a surprise to them.
    The number of Americans lacking health insurance rose by nearly 8.6 million to 47 million from 2000 to 2006, with children and workers from every income level losing coverage, a new report said on Thursday.

    The increase was "driven primarily by the continued erosion in employer-provided health insurance," said the report by the Washington, D.C.-based Economic Policy Institute.

    In 2006, 2.3 million fewer Americans received health benefits from their employers than in 2000, the report said, noting the decline does not take the population increase into account.

    Nearly 60 percent of the nation's children are covered by the insurance provided by their parents' employers, but 3.4 million fewer children had benefits in 2006 compared with 2000.

    "Public health insurance is no longer offsetting these losses," said the report by the nonpartisan think-tank.

    For jobholders, this was the sixth straight year of declines in health insurance coverage. The rate fell to just below 71 percent from nearly 75 percent in 2000.

    "No category of workers was insulated from loss of coverage," as even workers whose earnings placed them in the top quintile saw coverage rates fall, the report said.

    "The decline in employer coverage was pervasive and felt throughout the country," the report said.

    Thirty-eight states saw "significant" drops in benefits provided by employers for people under 65, the report said. Utah, South Carolina, Maryland and Georgia all saw rates drop by at least 7 percentage points. [all emphasis mine]
    No wonder a majority of Americans favor a Medicare-For-All type plan. Employment is no longer a guarantee of health insurance.

    (Cross-posted at BFM.)

    Tuesday, September 25, 2007

    Two Michigans

    Recent events in Michigan got me thinking about John Edward's "Two Americas" and it saddened me to realize Michigan could claim a similar title - Two Michigans.

    Yesterday, the UAW went on strike against GM in an attempt to hold onto their jobs and keep them from being outsourced to China or Mexico. Meanwhile, our state still faces a shutdown if legislators can't come to an agreement on the budget. Republicans want to cut Medicaid funding, state police, and education, among other things. They also want to
    eliminate 2,232 jobs. To add insult to injury, today we learned that Bank of America plans to layoff 1500 workers in Michigan over the next two years. Too bad all these people don't have a union working on their behalf. These cuts will drastically affect the lives of average citizens just trying to give their families a decent quality of life on increasingly stagnant or falling wages.

    Contrast that to the lifestyles of those Republicans who would like to be our next president. They recently gathered on Mackinaw Island to hold their Republican Leadership Conference and it was quite the aristocratic affair according to this article in Salon:


    The GOP gets gaudy in Michigan
    How do Republican presidential candidates woo the beleaguered voters of what may now be a crucial primary state? Party like aristocrats!

    For about 36 hours beginning Friday afternoon, more than 2,000 politicians and party activists passed through the Grand Hotel, boozing and slapping backs in one of America's last bastions of Victorian aristocratic nostalgia. One by one, the leading Republican presidential candidates came as pilgrims to pay homage to the gaudy affair. At times, the scene recalled Jack Nicholson's ballroom hallucinations from the 1980 horror movie, "The Shining."

    Built in 1887, the Grand Hotel is columned and cavernous, with a candy-striped interior, a pink hair salon, a maroon wine bar and a jewelry store named "The Colony Shop," which was sold out of canary diamonds for the weekend. The wait staff, imported from Jamaica on temporary visas, was entirely black, and they served food to invariably white Republicans while wearing white-tie tuxedos with jackets the color of AstroTurf. (Brochures left in the guest rooms explained that the Jamaican help is provided with laundry and "recreational facilities" at their on-island dormitories.) Croquet and bocce ball could be played down in the Tea Garden, which was decorated with abundant blooming flowers and bushes shaped like horses. At tea time, a harpist in heels played "Somewhere Over the Rainbow" while women in maid costumes served tea cakes and champagne just a few steps from an exhibit of vintage oil paintings that showed young girls in lace dresses and young boys with spent shotguns and dead birds. [...]

    The candidates' appearances, however, were almost tangential to the real point of the weekend, which was to celebrate the pleasures of money and privilege. The diners supped on cold strawberry soup, prosciutto, and pecan-coated ice cream balls. People did not use the word "money" when they talked about money. "Everyone in this room understands the importance of resources, the importance of finance, in winning campaigns," said Dick DeVos, the son of the billionaire founder of Amway, who lost a costly race for governor last year, which he funded with $35 million of his own fortune.[...]
    Yep, two Americas: Those who have the money and power - and the rest of us, the ones who need unions or PACs like MoveOn in order to be heard.

    Cross-posted at Blogging for Michigan.

    Wednesday, September 05, 2007

    A new special interest group: The Working Poor

    Of all the dumb comments I've heard from politicians, State Sen. Nancy Cassis wins the prize. Cassis wants to delay the onset of a promised earned income tax credit meant to give relief to Michigan's lowest-paid workers until the state's rainy day fund is restored to $250 billion, which last happened in 2001.

    Why did Cassis zero in on the working poor? From the
    Flint Journal:
    [...] Cassis cynically refers to these working poor as just one more "special interest" among many seeking relief.
    Special interest? Cassis must be confusing the working poor with Dick DeVos and his All Children Matter PAC. They're throwing around some serious money in Utah trying to win their voucher referendum.

    In a post titled,
    Why Is Michigan Money Coming Here?, Accountability points to the DeVos family who, "has spent a good chunk of their fortune on the PAC. Along with them, Wal-Mart heirs Jim and John Walton are frequent donors, giving more than $3 million to the PAC in 2004."

    Utah isn't the sole beneficiary of their influence, Florida, Louisiana, Ohio, Missouri, Virginia, Wisconsin and Michigan have all received funds too.


    Why is DeVos' PAC spending money in Utah?
    Accountability sees it this way:
    [...] it makes it clearer to me why Utah was picked for this voucher plan: It's considered a "small state" by the people who fund All Children Matter, so it would be cheaper here to run a voucher plan through the legislature and past Utah voters, and then use that victory to build momentum for campaigns in bigger states. It means this a national campaign, not just an idea that grew from Utah voters or lawmakers.

    And what does this say about our legislature, that this organization targeted us -- a small, cheap state -- to pour money into some legislative campaigns in order to protect or win enough votes to get a voucher plan through the assembly? What does it say that for a few million dollars, these people from Michigan got exactly the bill they wanted, House Bill 148, by a one-vote margin in the House this winter?
    Nancy Cassis knows the answer to those questions. She's a Republican. Cassis knows that money talks and money buys influence.

    The special interest working poor? They don't have a chance as long as people like Cassis remain in government.

    Monday, July 30, 2007

    Taxpayers come through for DeVos family

    The Orlando Magic will be getting a new $480 million arena by 2010 as part of a $1.1 billion downtown development plan. The DeVos family, owners of the Magic, pledged $158 million toward the project and agreed to cover any cost overruns. The remaining cost will be covered by a tourist tax.

    The team stands to
    gain huge profits -- perhaps tens of millions more than it earns now -- from selling luxury suites, advertising, etc.

    My reaction? Let me quote snarky Mike from AOL's FanHouse:
    I, for one, will be able to sleep better at night knowing that the citizens of Orlando are coming through for Richard DeVos, who has a net worth of $3.5 billion and is only the 73rd most wealthy person in the U.S. I mean, if this guy was among the top 50 wealthiest people in the country, maybe he could afford to build his own arena, but 73rd? I mean, he's just a few billion dollars away from waiting in line for free milk and government cheese.
    Just what the world needs...another wealthy Republican who can't make it alone without help from taxpayers.

    Wednesday, June 13, 2007

    DeVos speaks, MIGOP listens

    Why are state Republicans still listening to DeVos?
    Republicans who control the state Senate got a pep talk Tuesday from GOP businessman and 2006 gubernatorial candidate Dick DeVos.

    DeVos, who lost to Democratic Gov. Jennifer Granholm in the November election and is rumored to be eyeing another bid, spoke for 20 to 30 minutes during a Senate GOP caucus meeting at the start of session. [...]

    DeVos said Republicans outside Lansing support the GOP's stance that significant structural changes in government must be made before there is any consideration of a tax increase.
    I guess the party feels obligated because the man spent millions of dollars of his own money trying to unseat Gov. Granholm, but the fact that he was trounced should be a clue that the public finds him as irrelevant as George Bush.

    Seriously. DeVos based his election on somewhat dubious, if not downright untruthful claims. He ran around crowing that, "49 other states are doing great. 49 other states are moving forward. 49 other states are adding jobs. And yet, Michigan is the only one lagging behind," and he placed the blame squarely on Gov. Granholm.

    That's not how several papers saw it. As the Ludington News Daily said, "The near collapse of the Big Three is not the fault of the Legislature nor the governor. It’s in part the fault of the Big Three for failing to adapt to a global economy, work together with their unions to comply with that increased competition and changing consumer desires."

    It wasn't how the voters saw it either. CNN reported that the economy nearly tied Iraq as the reason voters across the country came out to vote last November.

    DeVos also ran a series of ads about our depressed housing market and the glut of homes on the market. The implication was that housing was doing great in 49 other states. Yeah, right. Foreclosures rates have been growing across the country since last spring, right about the time DeVos started running his first campaign ads.

    From ABC News:
    New data released this afternoon indicates that one in every 656 homes in the United States went into foreclosure during May. [...]

    "The principal source of the slowdown in economic growth that began last spring has been the substantial correction in the housing market," said Fed Chairman Ben Bernanke in a speech in late March. [emphasis added]
    Michigan currently ranks eighth among states, with one in every 448 homes in foreclosure, but we're certainly not alone in our misery like DeVos wanted us to believe.

    Aside from the misleading and disingenuous twisting of facts, why are state Republicans listening to DeVos on taxes? He supports the GOP's stance that structural changes in government must be made before there is any consideration of a tax increase, yet he and his family are willing to let taxpayers help build a new stadium for their basketball team in Orlando. If they don't see this as a double standard, shame on them.

    And what about the millions of taxpayer dollars that benefit his brother-in-law, Eric Prince, owner of Blackwater Security? I've never heard DeVos raise objections about that money, not even when it came to light that Rep. Henry Waxman wrote Sec. Donald Rumsfeld requesting answers as to why taxpayers paid exorbitant prices for Blackwater's services. Waxman is still waiting for those answers (and so is the public).

    And why are state Republicans listening to DeVos when they should be questioning him and his family about Blackwater's lack of transparency and accountability: Blackwater Heavies Sue Families of Slain [Fallujah] Employees for $10 Million in Brutal Attempt to Suppress Their Story.

    If taxpayer money provides funding for Blackwater Security, then taxpayers deserve to know if the company cut corners in order to maximize profit - and in the process jeopardized those mens' lives. Surely, Michigan's GOP believes in accountability and transparency, right?


    Whatever their reason for listening to DeVos, there's an old adage they might want to consider: When you lie down with dogs, you get up with fleas. They need to ask themselves if that's a risk they're willing to take. It hasn't worked out so well for many Bush loyalists and it just might not work out so well for them either.

    Saturday, March 17, 2007

    Two Views From Canada

    Canada's equivalent of Donald Rumseld and Dick Cheney all rolled into one has the solution for our energy woes:
    [Former deputy prime minister] Hellyer wants to use alien technology to eliminate burning fossil fuels. He pointed out to the Ottawa Citizen ... that alien spacecraft have to travel vast distances to reach Earth. So they must have extremely advanced propulsion systems that don't rely on sweaty little green guys shoveling coal into a flying saucer furnace. [...]

    Hellyer, 83, told the Ottawa Citizen, "We need to persuade governments to come clean on what they know. Some of us suspect they know quite a lot, and it might be enough to save our planet if applied quickly enough."
    How about that? The solution has been right under our noses in Roswell, N.M. all this time! Would someone please tell Washington?

    Moving along to a more sane (and chilling) point of view from Canada,
    The Old Bill recently wrote about evil and what it might look like. He concludes that it's likely to resemble Erik Prince (founder of Blackwater Security, a private mercenary army for hire that has the largest private military base in the world) or his father, Edgar, founder of the Family Research Council.

    Old Bill is concerned about other member's of Prince's family too:
    Erik's mom Elsa is a board member of Focus on the Family. His sister, Betsy, one time head of the Michigan Republicans, married Dick Devos, son of Amway - their foundation is a strong backer of Focus on the Family. His Freiheit Foundation funds numerous theocon/religious right groups.
    What's Old Bill's conclusion?
    Let's see, a major war-profiteer, mercenary army CEO. . . does that seem a bit at odds to the gospel? to the person/spirit/ethos of Jesus?

    [...] having watched the rise of the religious/theocratic right in the US for almost 3 decades, I'd never considered the possibility of them creating their own army, I'd underestimated the wiliness of the devil. Yet here's a group that has created its own army, with the blessing of the Bush administration, and is amassing huge profits. Appears
    Corrie ten Boom was right. Sounds over the top, I know, but I think as Canadians we need to start asking what we will do if/when the US drifts/lurches into a fascist state, a theocracy. . . And as Christians, we need to start asking the questions Bonhoeffer asked, at what point must we give up our silence, our comfortable acquiescence? [emphasis added]
    If you think Old Bill is overreacting, then consider this statement from Aaron, a priest-in-training at Ave Maria University in Naples, Florida (built by Tom Monaghan, Domino Pizza billionaire):
    Aaron argued that the United States can only be saved from moral perdition if it, like Ave Maria, embraces the magisterium as supreme. "We don't believe in the separation of church and state," he said, "and this country should orient itself toward Christ. The foundation of Western civilization rests on Christendom, which means that America owes its existence to the Catholic Church." [emphasis added]
    Our country should orient itself toward Christ? A good starting point would be to end the war in Iraq, the one based on a lie.

    Monday, February 19, 2007

    Taypayer Money Helps DeVos

    The Muskegon Chronicle had this to say about our state GOP naysayers:
    State Republicans aren't letting a little thing like an election defeat end their ongoing blockade of Gov. Jennifer Granholm's attempts to stabilize the state budget. [...]

    Probably, Dick and Betsy DeVos, and maybe John Engler, are cheering them on. Michigan voters didn't elect any of that trio to lead our state this dark and depressing year, but they sure seem to be in charge nonetheless.
    I think the Chronicle is probably right. The DeVos family is one of the largest contributors to the Republican Party and they've been trying to influence politics behind the scenes for years. The fact that they and state Republicans are calling for even deeper cuts - instead of a 2% service tax to stabilize the budget - is kind of funny considering the fact that taxpayers are helping Daddy DeVos build a new stadium for his basketball team in Orlando.

    Happytown is not too happy. Foul cried one journalist.
    The only reason the city is building a new arena is that the Magic demanded it. Yet all they are willing to contribute is 10 percent. Someone should have called foul.
    Is arena deal too good to Magic? asked another.
    Critics charge that local taxpayers will get shortchanged in the pending $480 million deal. That's because the team stands to gain huge profits -- perhaps tens of millions more than it earns now -- from selling luxury suites, premium seats, advertising and more.
    And Living in Fantasyland is how another journalist summed it up.
    Yes, we all know that billionaire team owners have been raking taxpayers across the coals for decades in this country. But as most of your kindergarten teachers used to tell you: Just because someone else is doing something wrong doesn't mean it's OK for you to do it, too.
    As long as taxpayers keep letting them get away with it, rich Republicans will keep on trying, and DeVos is no different. The only time Republicans hate taxes is when they can't use them for personal profit.

    Orlando taxpayers can take some solace from this fact though:
    The Magic will control the construction of the new arena. This will enable them to cut corners so as to avoid any cost overruns for which they would be responsible.

    Under the city’s contract, however, the Magic have to follow the city’s anti-discrimination ordinance. Which means Magic owner/fundie weirdo Rich DeVos can’t refuse to hire gays to build his new pleasure palace! (He also can’t refuse to hire blacks, Hispanics, midgets, Wiccans, atheists or disgruntled Amway customers.)
    That's priceless.

    Wednesday, November 08, 2006

    What Can't $40 Million Buy?

    The governorship of Michigan! Incumbent Gov. Jennifer Granholm won reelection last night over her opponent Dick DeVos. Congratulations to Granholm, Stabenow and the numerous other Democrats who won. (The final tally isn't in yet, but it looks like Granholm won by about 14% over DeVos who spent $35 million of his own money on the election.)

    I stayed up very late last night watching election returns so I'm on automatic pilot this morning, but I wanted to make a couple of comments about the election. First, DeVos based most of his campaign on Michigan's dismal economy, blaming it entirely on Granholm and insisting we were in a single state recession. Voters didn't buy that argument and could see for themselves what was happening across the nation. In fact, CNN reported that the economy nearly tied Iraq as the reason voters across the country came out to vote.

    Michigan voters don't live in a bubble. We all have family and friends in other states struggling just like we are to hold onto the American Dream. So, in spite of all the ads and robocalls, we knew who was really to blame for our economy - Bush and his fellow Republicans.

    Finally, I think the fact that the DeVos family is one of the largest contributors to the Republican Party turned voters off. From abortion and stem cells to welfare and the minimum wage, DeVos was in lockstep with Bush and the GOP. Yesterday's election showed what Americans think about Bush and his party - and Michigan showed DeVos what we think about him.

    It's too bad he didn't spend his $35 million on something that would have really helped the citizens of Michigan instead of all those robocalls and commercials.

    Friday, November 03, 2006

    Granholm takes 3 to 1 endorsement lead over DeVos

    From what I can see, Gov. Granholm is leading her opponent Dick DeVos 3 to 1 in newspaper endorsements. The Alpena News, Petoskey News Review, Grand Haven Tribune, Port Huron Times-Herald and Central Michigan Life all endorsed Governor Granholm yesterday.
    Granholm is the best choice...The DeVos campaign has been more about public relations than it has been about issues and specific answers...- The Grand Haven Tribune

    Granholm can lead state to better times... As tempting as it may be to replace her, Michigan needs a leader who can speak to more than just business concerns. The state's turnaround must be inclusive - and Granholm stands a better chance of ensuring the state's poor and low-income residents won't bear an inordinate amount of the sacrifice. - Port Huron Times-Herald [emphasis added]

    Granholm right choice for governor...Gov. Jennifer Granholm has been good to Northeast Michigan in general and Alpena in particular, and because of that, she receives our endorsement in re-election efforts. - The Alpena News

    Choose Granholm: But the reality is it’s not Granholm’s fault. Michigan’s dependence on the dwindling automotive industry has crippled the state’s economy. Plants have shut down; thousands have lost work. In response, Granholm has created a Jobs Fund initiative which will pour more than $2 billion into new sectors including alternative energy and the life sciences. Granholm also inherited a state with a $4 billion deficit and has had to work during her first term to pull ahead. Starting over is not what our state needs. Voters will be investing in the future of Michigan by voting to re-elect Granholm. - Central Michigan Life
    It's not just newspapers either. Dozens and dozens of organizations have thrown their endorsements her way too (see the list below). I know some people don't put much stock in endorsements, but when editorial boards and organizations are predominately throwing their support behind Granholm that tells me something - Granholm is the right choice for Michigan.

    Michigan Education Association
    MI Assoc. of Police Organizations
    Detroit Police Officers Association
    The Detroit Lieutenants and Sergeants Association
    MI State Police Troopers Assoc.
    The State Police Command Officers Association
    MI Police Labor Council
    MI State Police Command Officers Assoc.
    Warren Police Officers Assoc.
    The Flint Police Officers Association
    Triangle Pride PAC
    AFT (Formerly the Michigan Federation of Teachers & School Related Personel)
    Clean Water Action
    AFL-CIO
    AFSCME
    Building Trades Council
    Int'l Union of Operating Engineers
    MI Credit Union League
    MI Professional Firefighters Assoc.
    MI Regional Council of Carpenters PAC
    MI State Building Trades
    MI Teamsters
    SEIU Michigan State Council
    United Auto Workers (UAW)
    United Food And Commercial Workers
    MI Corrections Org.
    Retail, Wholesale and Department Store Union
    Change to Win
    Detroit Federation of Teachers
    EMILY'S List
    MI Agri-Business Assoc.
    The Black Slate
    Polish Citizens for Equality (PACE)
    Truth Lutheran Church
    Sierra Club
    International Union of Operating Engineers Local 324
    Greater Detroit and Michigan Building and Construction Trades Council
    IBEW
    Laborers' International Assoc. of North America
    MI Machinists
    MI Laborers Assoc.
    MI State Employees Assoc.
    Plumbers & Pipefitters Assoc.
    UFCW Local 878
    UFCW Local 951
    Unite Here
    Sierra Club
    Macomb County Elected Officials
    MI Nurses Association
    National Women's Political Caucus
    Midland Gladwin Central Labor Council AFL-CIO
    Michigan Concrete Paving Association
    MI Equality PAC
    Muslim Community PAC

    Wednesday, October 25, 2006

    Dr. Phil and DeVos?

    The independent weekly Metro Times has an article about Dick DeVos and Dr. Phil McGraw (yep, Oprah's Dr. Phil) that I found interesting. Apparently, Dr. Phil was accused of being part of a scam involving fraudulent diet products manufactured by Amway. There was a class action lawsuit and a multimillion-dollar settlement too. Read on for the details:
    The Shape Up! diet supplements Dr. Phil helped promote and peddle — his chrome-domed visage was featured on the packages — were pushed with the claim that the products contained "scientifically researched levels of ingredients that can help you change your behavior to take control of your weight."

    The suit against Dr. Phil and the company that actually sold the products, CSA Nutraceuticals of Irving, Texas, alleged fraud and claimed that there was no credible scientific evidence that these products had any effect on a person's behavior.

    Here's how scientific the whole thing was: Purchasers of Shape Up! products (How Dr. Phil, don't you think? The commanding tone, the exclamation point!) determined which supplements were right for them by identifying their body types — pear-shaped people took one formula, while those who looked more like apples took another. How could you not believe in a product like that?

    News accounts of the $10.5 million settlement didn't mention Amway — the controversial company co-founded by the candidate's father in 1958 — or the umbrella company, Alticor, which Dick created in 2000 when he was running the show there in Ada. Coverage of the class-action lawsuit, filed in Los Angeles, focused mostly on the role played by the bombastic Dr. Phil — who has denied any wrongdoing connected to his promotion of a now-discontinued line of dietary supplements.

    What caught some eyes (including those of the tipster who clued us in to all this) were the terms of the settlement: Pears and apples foolish enough to buy Dr. Phil's line could opt to receive Nutrilite vitamins in lieu of cash. Those supplements, it turns out, are manufactured by Amway and its sister company, Quixtar.

    Huh?

    The answer to that guttural query can be found not in news accounts (at least not any that we saw) but rather the settlement agreement posted on the Web site shapeupsettlement.com. There, it's revealed that neither Dr. Phil nor CSA were the ones ordered to shell out, but rather Amway parent company Alticor.

    According to that document, Alticor will provide $4.5 million in cash and $6 million in Nutrilite products to disgruntled users of Shape Up! The product was taken off the market in 2004. [...]

    DeVos had resigned as president of Alticor less than a year before Shape Up! hit stores. One source familiar with the case says that, considering the size of the deal — worth an estimated $20 million or more to the Michigan-based company — and the lead time required to put something like that together, it's almost certain DeVos would have had to have signed off on it before leaving the company. Devos' handlers didn't return a call seeking comment.
    Of course they didn't return the call. DeVos is running around telling people Michigan needs a businessman running things. News like this might tarnish his image, although Amway and the DeVos family are no strangers to lawsuits and criticism:
    But there are also many ardent haters of the company. For a particularly chilling account of the culture of Amway — the culture that spawned our dear Dick — News Hits recommends Merchants of Deception by Eric Scheibeler, a former big-time Amway distributor. You can download the book directly from the Web at merchantsofdeception.com.

    If you go to that site, after reading a litany of allegations concerning Amway and its associated companies, you will find this question posed by Scheibeler: "Is this the same leadership that the people of the State of Michigan are now to trust?"
    One thing is certain, we can trust DeVos to act like a hypocrite, which brings me to this article, also from the Metro Times, about the American Family Association’s boycott of Ford Motor Co. for supporting homosexuals.
    So, what’s this have to do with Dick? Turns out his wife Betsy DeVos, the former chair of the Michigan Republican Party, is vice president of the Edgar and Elsa Prince Foundation. That foundation, launched by Betsy’s late father (who made a fortune in the auto parts business), gave the AFA $5,000 in 2004, according to the most recent records on file with the IRS.

    So, a family-run foundation that has the wife of a gubernatorial candidate in a key position is helping fund a group that is boycotting one of Michigan’s leading employers at a time when that same candidate has made the dire condition of the state’s economy the focus of his campaign.

    Sean Kosofsky, director of the political arm of the Detroit-based Triangle Foundation, a gay advocacy group, is outraged by the hypocrisy and dumbfounded that this hasn’t become more of an issue in the campaign.

    If this were Daniel Mulhern, husband of Gov. Granholm, contributing to a boycott of a major employer in this state, says Kosofsky, the Republicans — and the media — would be merciless in their hammering.

    "If this was Dan Mulhern’s family helping fund a boycott of Ford," says Kosofsky, "Granholm would be toast."
    [emphasis added]
    Toast? They would have crucified her. DeVos can run around touting his leadership skills all he wants, but the bottom line is that it's his name associated with discrimination, lawsuits, pyramid schemes and boycotts. How can that be good for Michigan?

    Thursday, October 19, 2006

    How Does DeVos Explain This?

    DeVos continues to claim that 49 other states are doing great. Meanwhile, the NY Times is reporting that alarm bells are going off for the GOP in red state Ohio, and it's all because of the way Bush is handling the economy. [emphasis added]
    [T]he bellwether state of Ohio appears to have become hostile terrain for Republicans this year, with voters there overwhelmingly saying Democrats are more likely to help create jobs and concluding by a wide margin that Republicans in the state are more prone to political corruption than are Democrats, according to the latest New York Times/CBS News poll. [...]

    Sixty-five percent of those surveyed rated the state’s economy as bad; only 34 percent said it was good.

    Only a third of Ohio voters approve of the job Mr. Bush is doing as president or the way he is handling the economy, and they seem poised to take their discontent out on Republican candidates up and down the ballot. [...]

    “In Ohio we’ve seen nothing but our manufacturing jobs cease to exist,” said one poll respondent, David Stuck, 59, of Miami Township, who said he had voted twice for Mr. Bush. Mr. Stuck, a Republican, blamed inaction at the federal level for the evaporation of jobs in Ohio and said he planned to vote for the Democratic candidate for United States Senate, Sherrod Brown, over the incumbent, Mike DeWine, a Republican.

    “Call it a protest,” Mr. Stuck said in a follow-up interview. “I haven’t seen anything done in the last six years. To be honest, I’m truly thinking about voting Democratic across the board because I’m tired of Bush.”

    Twenty-eight percent of those polled said an adult in their household had been out of work and looking for a job in the past 12 months, and 44 percent of them said they were worried that someone in their family would be out of work in the coming year.

    James Reed, 50, a self-described independent voter from Ashtabula, said in a follow-up interview that Mr. Taft, who is not running for re-election, “has sold us down the road as far as jobs are concerned.” Mr. Reed, a disabled chemical plant worker, said trade restrictions were needed to prevent American jobs from being shipped overseas, a view shared by 69 percent of Ohioans surveyed.
    DeVos is wrong. The rest of the country is not doing great - at least not the middle-class - and that explains why more and more people are ready to vote Democratic across the board. The Republicans had their chance and they blew it. Forgive me for using a cliche, but their rich friends and corporate buddies got the gold mine and the rest of us got the shaft.

    Wednesday, October 18, 2006

    I'm Not Buying What DeVos is Selling

    I only saw a couple minutes of the final debate between Granholm and DeVos the other night and I noted DeVos' stage prop right away - his eyeglasses. What was that all about? I assume someone told him they would make him look more intelligent, but I think words are more important than appearances, and what I heard didn't impress me too much. DeVos continues to repeat the same mantra over and over again:
    [...]49 other states are doing great. 49 other states are moving forward. 49 other states are adding jobs. And yet, Michigan is the only one lagging behind.
    Really? Dick might want to put those glasses back on and read this news:
    Ohio pushed President George W. Bush's reelection over the top in 2004, but in congressional elections next month economic hardship in the rust belt could turn the tide against incumbents from Bush's Republican Party. [...]

    But the manufacturing heartland is still feeling the lingering effects of a recession in 2001 and reeling from the loss of thousands of jobs to factories in China, India and Mexico.

    While the nation's unemployment rate is at a five-year-low of 4.6 percent, joblessness is 5.7 percent in Ohio, 7.1 percent in Michigan and 5.3 percent in Indiana. Together, the three states have lost nearly half a million jobs in six years. [...]


    John Gordon, 54, is a 10-year veteran at the plant who makes $16.58 an hour. He voted for Bush in 2004, but now he wants change.

    The 25 cent raise he got last year didn't keep up with inflation, he said. His health insurance premiums have doubled in recent years, while coverage has shrunk.

    "I just got a bill for $300, and our plan pays $72," he said. "George Bush wants to do away with overtime compensation, while everyone else, big oil, gets their handout."
    Here's some more "great" news about conditions in Ohio and across the country: [emphasis added]
    [...]The announcement this month by diesel engine maker Cummins Inc. that 600 to 800 jobs would be created at its once-decimated Columbus plant drew two U.S. congressmen and the state governor, Republicans all, to celebrate the success of drawing new jobs to their district.

    "We still have challenges, but there are more people working today in America than ever before ... and it's good news," said Rep. Mike Sodrel, who is trailing Democrat Baron Hill in polls for the November 7 election, when control of Congress is at stake.

    That there are more Americans working now than ever before is not really much of an accomplishment -- there are more Americans, period, due to population growth -- but in the rust-belt states of middle America, any job growth in an election year is reason to revel.

    Indiana's unemployment rate has climbed from 3.0 percent six years ago to 5.3 percent, well above the 4.6 percent national average. While job growth in the state has outpaced neighbors Ohio and Michigan, there are still 21,400 fewer jobs there than in 2000, before Republican President George W. Bush won the White House.
    Moving further west, the story is similar:
    Not only has the median income of Kansas and Missouri dropped an average of 12 percent over the last six years, the cost of state-supported higher education has increased some 50 percent. More specifically, according to the U.S. Census Bureau and Education Department, and the state departments of higher education, the median income in Kansas dropped over 10 percent while tuition increased 59 percent. In Missouri, average income dropped nearly 15 percent and tuition at the state’s universities increased 51 percent.
    Of course, having that college education isn't the ticket to upward mobility it used to be:
    The recently released 2006 Economic Report of the President reported that earnings for workers with college degrees declined between 2000 and 2004.
    In fact, the middle-class is feeling the squeeze across the country:
    But through September, the growth in hourly wages was flat or negative for 27 of the previous 29 months, according to Labor Department data. Wages for blue-collar and nonmanagerial workers - 80 percent of the work force - are growing at a 3.9 percent annual rate, the Labor Department reported in September. Consumer-price inflation, however, is rising at the same rate. That means prices are rising as fast as wages.

    Workers are barely keeping up. Health care, wages and energy prices are consumers' top three economic concerns, according to a Gallup poll in September.

    "That has to do with things like stagnant wages, fears of jobs being outsourced, income security. These are on people's minds, particularly in lower- and middle-income areas," said Dennis Jacobe, chief economist in Charlotte, N.C., for Gallup.
    Nope, I'm not buying what DeVos is selling. There's no denying Michigan is struggling, but 49 other states are NOT "doing great" like he's trying to convince us. Of course, DeVos is a billionaire, and his world is different from ours, but just because Wall Street workers took home nearly $300,000 on average last year that doesn't mean the rest of America is doing well.

    Related reading:

    The Undeclared War on America's Middle Class
    Working America: Less isn't more
    Worker's Are Ready for a Change
    About That Single State Recession
    More on the Single State Recession Myth

    Monday, October 16, 2006

    Big Business Fighting China's Labor Law

    This is an interesting post from Jonathan Tasini:
    Since the spring, there has been a debate within China--ignored by the mainstream media in the U.S. and much of the world--about a new labor law in China. [...] As The New York Times reports:
    China is planning to adopt a new law that seeks to crack down on sweatshops and protect workers' rights by giving labor unions real power for the first time since it introduced market forces in the 1980's.
    This is fairly extraordinary, as is the response of multinational corporations:
    The move, which underscores the government's growing concern about the widening income gap and threats of social unrest, is setting off a battle with American and other foreign corporations that have lobbied against it by hinting that they may build fewer factories here. [...]
    Up until now, China did its bidding for U.S. corporations. As the AFL-CIO's petition to the U.S. Trade Representative pointed out, China artificially suppresses wages by anywhere from 47 to 85 percent of what they should be. In the Chinese labor system, people work twelve- to eighteen-hour days with no days of rest, earning meager wages, in factories full of chemical toxins and hazardous machines, and suffer sickness and death at the highest rates in world history.

    But, this new labor code may begin to force wages up.

    Which is driving corporations up the wall. Today, Global Labor Strategies is releasing a startling report. [pdf file] The report reveals that:
    US-based global corporations like Wal-Mart, Google, UPS, Microsoft, Nike, AT&T, and Intel, acting through US business organizations like the American Chamber of Commerce in Shanghai and the US-China Business Council, are actively lobbying against the new legislation. They are also threatening that foreign corporations will withdraw from China if it is passed.
    Opposition to the labor code is being led by three major organizations representing foreign corporations operating in China: The American Chamber of Commerce, the US-China Business Council, and the European Union Chamber of Commerce.

    I'm skeptical of China's motives because it is a communist country and they never showed much concern for their workers before, but I have to give them credit for addressing the widening income gap - even though it is partly motivated by concern for the stability of Chinese society. China faces work actions, protests and strikes nearly everyday and the government fears that the widespread unrest could threaten its rule.

    I should be surprised that big business is trying to fight these changes but I'm not. They're proving to be the liars I always suspected they were. They fed us the idea that globalization would raise living standards around the world, but when it comes time to put their money where their mouths are they cry foul, hire lobbyists and start throwing threats around.

    Additional reading about corporations that do business in China:
    DeVos and Amway Soft on China Trade Enforcement
    Official Union in China Says All Wal-Marts Are Organized, yet not a single Wal-Mart store in the U.S. is unionized.
    U.S. Corporations Work to Prevent Chinese Workers' Rights
    Corporations, China and Unions

    Sunday, October 15, 2006

    I Don't Want a Governor Who Works for the GOP

    We have three new Michigan bloggers on the scene. Among the Trees is hosted by Eric Baerren (former editor of the Mt. Pleasant Morning Sun). I always liked Eric's editorials because he remained true to himself when he voiced his opinions and didn't worry about taking the popular stance. I think his blog will evolve along the same lines based on this recent post where Eric questioned the wisdom behind cutting taxes in order to create jobs (a position promoted by DeVos and his supporters):
    Beckmann ends his attack on the governor suggesting that if we don't buy DeVos' argument that we're just stupid. [...]

    Right, and here's a question ... if cutting taxes leads to economic growth, then why are we today losing jobs after a decade of tax cutting by a Republican governor? [emphasis added]
    Great question, Eric, and the answer is that cutting taxes doesn't lead to job creation, but that's a little detail DeVos and certain columnists hope us "rationally ignorant" voters won't notice.

    Because it's important to educate ourselves on the issues, Liberal Lucy decided to start a blog - Liberal, Loud and Proud.

    Lucy said she's not just another ranter (hmmm...do I ever rant), but her blog "is about living what I believe, sharing/educating those who care, and being a proud citizen of an incredible state." Lucy's been a regular contributor over at Michigan Liberal and she's eager to help educate us on the details. In fact, between now and election day, Lucy plans on sharing one fact everyday on why Amway Guy is bad for Michigan. And for every reason she gives to not vote for Dick, she's going to give one on why Governor Granholm is the hardest working, most compassionate and dedicated governor in the country. Check in with Lucy everyday and learn!

    That brings me to Nirmal, who moved and has a new name - Capital Viewpoint. Nirmal's previous blog was Who Got the Gravy where he had a great series of posts on Amway and DeVos that I recommend everyone read:

    Amway Exposed, Part One: The Profitability of Amway

    "Amway Exposed, Part Two: The "Tools" Scam

    Amway Exposed, Part Three: Dick DeVos Doesn't Believe in Workers' Rights

    Amway Exposed, Part Four: Amway and Free Speech

    Why bother reading about Amway and DeVos? I've mentioned this before, but it's worth repeating this comment from Zack at Pohlitics that sums it up well:
    When you get down to brass tacks, the whole Amway universe works like this: wealthy elites exploit the poor with the false hope of achieving the "American dream" in order to enrich themselves.
    DeVos asks us to trust him, but he keeps on writing check after check to lobbyists, special interest PACs and Republicans. I'm sorry, but I want a governor who works for me - not the Republican Party.

    (Go read the new blogs on the block!)

    Wednesday, October 11, 2006

    Granholm Zings DeVos

    The award for best one-liner from last night's debate goes to Gov. Granholm:
    Michigan needs a Governor who stands up to George Bush, not one who writes the President a 7-figure campaign check.
    That pretty much defines DeVos. I've written about his ties to the Bush administration here and here, and others have taken note too. In fact, here's a recent letter to the editor that points out just how cozy DeVos and the GOP have been.
    I recently read that Dick DeVos wants to get tough on lobbyists, if elected. I find that very interesting, considering his past association with lobbyists. Dick and Betsy DeVos held a huge fundraiser in 2004 on one of the family yachts. The guest list included lobbyist extraordinaire Jack Abramoff and indicted Congressman Tom DeLay.

    The DeVos family gave more than $600,000 to the Bush re-election campaign and contributed often to DeLay and his PAC. I wonder if the reason DeVos won't disclose his tax returns like other candidates is he doesn't want the public to see the money trail.

    Please consider voting again for Gov. Granholm, the one that really cares about Michigan.

    Dotty Dilsaver/Battle Creek
    DeVos doesn't want to be governor because he cares about the citizens of Michigan. DeVos only cares about his own agenda and that of the GOP - an agenda that favors big business at the expense of working class Americans.

    Read the facts behind the claims DeVos made during the second debate here.

    Tuesday, October 10, 2006

    Dubya and Dick=Twins

    The latest political ad from the MDP sure has people talking. It's called "Twins" and shows how there is no difference between DeVos and President Bush as they morph together on the screen. It's the best campaign ad I've seen all year.


    Quicktime and Windows Media versions are here.

    Of course, not everyone liked the ad. Dick's Disembodied Head was insulted. He claims Dick Devos and George W. Bush are easy to tell apart. You won't convince me of that, especially after reading this post from Wizard Kitten that reports Levin is critical of DeVos on China trade.

    I have a feeling Levin is critical of Bush too. Democrats claim the Bush administration's China trade policy has been missing in action for sometime now.

    That's great for companies like Amway and the DeVos family, but as Wizard Kitten points out:
    Amway has made billions in China. One wonders- where is all that money? Dick certainly hasn't brought it back here.

    Thursday, October 05, 2006

    DeVos Coverup Exposed

    The Alterra/DeVos story continues to grow legs in Michigan thanks to Daddy DeVos. Here's the lastest MDP press release:
    Rich DeVos: Dick DeVos Knew About Alterra’s Abuse

    LANSING- Michigan Democratic Party Chair Mark Brewer pointed to an article by Rob Kirkbride in today’s Grand Rapids Press today that disproves GOP gubernatorial candidate Dick DeVos’ claim that he only “recently” learned of the abuse of seniors at the DeVos controlled Alterra nursing homes. The Press reported that “Richard DeVos said Wednesday his son, Dick, and the rest of the family were given only a short briefing about problems at the former Alterra Healthcare Corp. nursing home chain.”

    Kirkbride also reported that “Richard DeVos said [Alterra Board Chairman Jerry] Tubergen talked to the RDV Corp. board about Alterra and told the family he would ‘take care of it.’” The Board of Directors of RDV Corporation is composed Dick DeVos and his siblings and their spouses. (pp. 20-22 of RDV Altco LLP's June 12, 2000 Schedule 13D SEC Filing).

    “DeVos’ father’s statement is a smoking gun proving that Dick DeVos knew about the abuse at Alterra when it was occurring in 2000-02 and lied about his knowledge in the debate. The DeVos campaign has been engaging in a cover-up of DeVos’ knowledge of the abuse,” Brewer said. “DeVos lied because Alterra covered up the abuse every step of the way. DeVos does not want people to know that he and his closest friends and family did nothing when many seniors were being abused.”

    There are other instances of the DeVos campaign lying to the public about Alterra.

    * DeVos flip-flopped on the amount that he invested, saying that he owned $20 million worth and then saying he owned $9 million worth.
    * DeVos denied that Jerry Tubergen had control, but Tubergen was Chairman and led the search for Alterra’s President and CEO according the Milwaukee Journal Sentinel. Tubergen also appointed Alterra’s President according to Business Wire.
    * DeVos’ campaign said there were no “special provisions” given to those in the DeVos investment, but the Detroit News reports “Brewer also provided a copy of Alterra bylaws that spelled out how DeVos and his group could hire top company officials, control the company budget and make decisions about corporate operations.”

    This isn't the first time Daddy DeVos contradicted his son. Earlier in the campaign, Dick ran around claiming he should be elected because he turned Grand Rapids around. When DeVos Sr. was asked to comment about his son's claim, he just chuckled and called that "a little political license." Hmm...is that the same thing as telling a little white lie?

    Tuesday, October 03, 2006

    Senior Abuse at DeVos Controlled Alterra

    The first debate between Granholm and DeVos took place last night and it pretty much went the way I expected it to - Granholm was aggressive and articulate and easily dominated the debate. Several columnists criticized Granholm for being too aggressive, but I thought she set the right tone. (It's interesting that Bush can get away with acting and speaking aggressively - "bring it on" - but when a woman does it she gets criticized.) Anyway, there were no big surprises in last night's debate except for one:
    In Monday night’s debate, Granholm, a Democrat, said DeVos had failed to disclose his investment in Alterra Health Care, a Milwaukee-based firm that went bankrupt in 2003 amid charges of patient neglect and abuse. She said DeVos had owned 12 million share of Alterra’s stock. [emphasis added]

    DeVos responded that he had owned less than 1% of Alterra’s shares and that he didn’t disclose it because his disclosure statement dealt with investments he currently holds. He also said he became aware of Alterra’s problems with patient care “just recently.”
    Really? That pretty much contradicts the latest press release from the Michigan Democratic Party and whistleblower Kathy Recco:
    LANSING- Today Michigan Democratic Party Chair Mark Brewer was joined by whistleblower Kathy Recco to discuss the abuse of seniors at Alterra assisted living centers while Alterra was controlled by a group of investors led by GOP gubernatorial candidate Dick DeVos.

    DeVos hypocritically said in unveiling his Senior Citizen plan, "Our seniors deserve to be treated with honor and dignity because they continue to make significant contributions to our great state. We must do more to give back. We must ensure the services we have for seniors are both affordable and of high quality. And above all else, we must do a better job of protecting our most vulnerable citizens." (Dick DeVos, Senior Citizen Plan, 9/21/2006) (emphasis added)

    “I am here today to tell the story of 6 devastated families at the hands of a huge corporation called Alterra, families whose loved ones could have been protected with a $7.00 an hour employee by Alterra, a corporation that Mr. DeVos was very much a part of,” said Ms. Recco. “Mr. DeVos should have made sure his Alterra did the right thing. He did not.”

    “Dick DeVos had the responsibility to care for vulnerable senior citizens at Alterra,” Brewer said. “The abuse that residents suffered at Alterra homes completely contradicts his political campaign rhetoric professing concern for them.”

    In May, 2000 Dick DeVos led a group of investors made up almost entirely of family members and business allies which took control of Alterra in return for a nearly $200 million investment. They installed Jerry Tubergen, a longtime DeVos employee who runs the family’s investment firm RDV Corp, as Chairman of the Alterra Board of Directors and put other directors on the Alterra board. Tubergen and those DeVos directors had veto power over any significant management decision, such as the election of the Chairman of the Board, Alterra’s operating and capital budgets, employment of a President and other top executives, borrowing, capital expenditures and many others.

    “There can be no doubt that from May, 2000 until Alterra went bankrupt in January, 2003 DeVos controlled Alterra through Tubergen and his other hand-picked directors,” Brewer said. “He must be held accountable for the terrible abuse many seniors suffered in Alterra facilities. Anyone who would allow such abuse to occur is unfit to be governor.”
    The Free Press expands on this information even further:
    From at least 1999, before the DeVos investment, on through the years the family held their investment, Alterra was the subject of multiple complaints, lawsuits, and investigations in Michigan and other states stemming from patient neglect and possible physical and sexual abuse in some of its facilities.

    On Monday night, he [DeVos] said he learned of the problems “just recently.” Alterra’s problems, and those of the entire assisted-living industry, were the subject of widespread media coverage.

    Time magazine did a major story dealing with Alterra in 2001, and USA Today did an extensive investigation of Alterra in 2004.
    I don't buy it. How can DeVos claim he just recently heard about Alterra's problems when they existed prior to his investment in the company and the media was widely reporting on them? Nobody plunks nearly $200 million dollars down without first doing some checking, especially someone like DeVos who claims his business background makes him the perfect candidate for governor. No wonder DeVos refuses to release his income tax returns. How many other questionable holdings is he trying to keep from the citizens of Michigan?

    Click here [pdf file] for a USA Today article and several other stories regarding abuses at Alterra centers.

    Update: Matt @ Michigan Liberal has an excellent post on this subject that I encourage you to read: Why the nursing home thing is a BIG deal