Economy

Gordon Smith’s Golden Parachute

Is Smith Preparing to Write Two Checks? One for Wall Street and Another to His Campaign?

According to Gordon Smith’s latest financial disclosure, his annual income from Smith Frozen Foods inexplicably skyrocketed from less than $1 million to over $5 million.

The last time Smith reported earning more than $1 million from Smith Frozen Foods was in 1996, when he had two election contests for the Senate, and loaned millions of dollars to both campaigns.

“The last time Smith was taking this kind of income from his company he wrote a big fat check to his campaign,” said DPO Executive Director Trent Lutz. “Either there has been a run on frozen peas or Smith may be getting ready to write two checks: a blank check for Wall Street and one for his own flailing reelection campaign.”

SMITH'S BLANK CHECK FOR WALL STREET

Gordon Smith has stood with George Bush to foster a culture where CEOs run their companies into the ground and sail away with a golden parachute.

Under Gordon Smith and George Bush, CEO salaries increased in 2007 by 20 percent, while average real wages for the middle class have fallen. The gap between the rich and middle class is higher than at any point in the last 80 years.
[AFL-CIO, 4/13/08; Economic Policy Institute, 1/16/08; International Herald Tribune, 3/29/07]

SMITH'S BLANK CHECK TO HIMSELF

Apparently, CEOs on Wall Street aren’t the only ones profiting off the Smith-Bush economy. Gordon Smith has also found time to build a golden parachute of his own.

This is the first time since entering the U.S. Senate, Gordon Smith reported income from his company, Smith Frozen Foods, of over $5 million. Smith first reported his finances to the U.S. Senate in 1995, during his failed run against Ron Wyden.

Discuss: Gordon Smith’s Golden Parachute

Posted September 29, 2008 in Economy, Smith Frozen Foods - 0 comments

Illegal Immigrants at Smith Frozen Foods - A Regular Fact of Life

Gordon Smith and his family have profited off low wage workers at Smith Frozen Foods.

A past investigation by the Immigration and Naturalization Service showed that most of Smith's employees were illegal immigrants.

Now, a newspaper report says there is still "ample evidence to suggest that the hiring of illegal workers is a regular fact of life at Smith's operation" today.

It's outrageous for Smith to claim as a Senator that he wants to crack down on employers who hire illegal immigrants, while employing them in his own business.

For the full report, click here.

Discuss: Illegal Immigrants at Smith Frozen Foods - A Regular Fact of Life

Posted September 26, 2008 in Economy, Smith Frozen Foods - 0 comments

Dangerous Carbon Monoxide Levels at Smith Frozen Foods

Management Resisted Correcting the Situation

A full scale Oregon Occupational Safety and Health Administration (OR-OSHA) investigation of Smith Frozen Foods in 1998 found that the company was knowingly exposing their employees to dangerous carbon monoxide levels and refusing to address the problem. According to multiple complaints filed with OR-OSHA, workers at Smith Frozen Foods were nearly passing out due to the exhaust fumes coming from forklifts in the plant’s freezer.
[Memorandum in OR-OSHA File, 11/21/98; Notice of Alleged Safety or Health Hazards, undated]

“Gordon Smith’s record as a corporate citizen should concern Oregon voters,” DPO Executive Director Trent Lutz said. “He has endangered his workers, denied them fair wages and refused to provide them health care. Meanwhile he has received taxpayer-funded contracts and squeezed local budgets to pad his own bottom line. Smith cannot and should not hide from his conduct as a poor corporate citizen.”

A report prepared in November 1998 describes that OR-OSHA launched a full scale investigation after receiving complaints from workers at Smith’s company.

The complaint that triggered the investigation was made anonymously. A hand-written note in the file indicates that the complainant was “afraid of losing job over complaint.”
[OR-OSHA Investigation Report M7711-006-99, 11/19/98]

The notation also indicates that the company boss knew of the problem but “won’t take care of [the] problem.”
[OR-OSHA Investigation Report M7711-006-99, 11/19/98]

Although the company admitted that carbon monoxides levels were high, they maintained that the workers were not in the freezer long enough to face real danger.
[OR-OSHA Investigation Report M7711-006-99, 11/19/98]

After attaching their own dosimeters to two forklifts used in the freezer, OR-OSHA found carbon monoxide levels that were more than twice those reported by the company.
[OR-OSHA Investigation Report M7711-006-99, 11/19/98]

The inspection found unsafe levels of carbon monoxide in other parts of the facility as well, including the dock, the office adjacent to the dock, and a small break room where workers could go to warm themselves after long periods in the freezer.
[OR-OSHA Investigation Report M7711-006-99, 11/19/98]

Forklift drivers at the company who displayed symptoms of exposure were never told about the chronic, long term effects of carbon monoxide exposure.
[OR-OSHA Investigation Report M7711-006-99, 11/19/98]

According to U.S. OSHA, “acute poisoning may result in permanent damage to the parts of your body that require a lot of oxygen such as the heart and brain. Significant reproductive risk is also linked to CO.”
[OSHA Fact Sheet, 2002]

When OSHA took their findings to Smith’s managers the company said that addressing the problem “just wasn’t feasible.”

There was considerable discussion regarding the feasibility of addressing the carbon monoxide exposures. Mr. [Morris] Hansen claimed that it just wasn’t feasible to replace all of the propane fueled forklifts. My observation of the facility was that there were electric forklifts in other areas of the plant. I do not feel that there is a feasibility problem with this issue.
[OR-OSHA Investigation Report M7711-006-99, 11/19/98]

Following the meeting with Smith’s managers, Smith Frozen Foods was fined for numerous violations the following year resulting from its investigation of carbon monoxide levels at the Weston facility.
[OR-OSHA Investigation Report M7711-006-99, 11/19/98]

Discuss: Dangerous Carbon Monoxide Levels at Smith Frozen Foods

Posted September 26, 2008 in Economy, Smith Frozen Foods - 1 comments

Smith Frozen Foods Received Military Contracts, While Gordon Smith Managed Company

Does Smith Receive These Contracts Today?

Documents reveal that before Smith Frozen Foods received a bounty of taxpayer money from the Department of Agriculture (USDA), it was reaping additional contracts from the U.S. military. In fact, as much as 10 percent of the company’s money may have come from the government.

“Gordon Smith never mentions his lucrative business relationship with the Department of Defense,” DPO Executive Director Trent Lutz said. “Gordon Smith should immediately disclose any contracts his company has received from the government, especially contracts his company has received since Smith entered the U.S. Senate. Smith should also disclose any role he had in lobbying for these contracts.”

In 2000, Smith Frozen Foods received more than $3 million from USDA (while trying to reduce its local property taxes by at least $300,000). But before that, it was getting contracts from the Department of Defense.

According to a memo from the U.S. Department of Labor written July 1991, while Gordon Smith was actively running the company, Smith Frozen Foods had received contracts from the Department of Defense. The information was taken during a meeting with Smith Frozen Foods officials David Jensen and Russell Krey. The notations on the memo indicate that government contracts comprised approximately 10% of the business.

According to the memo, “The company also has various government contracts with the military to supply canned and frozen vegetables to their commissaries.”

Discuss: Smith Frozen Foods Received Military Contracts, While Gordon Smith Managed Company

Posted September 25, 2008 in Economy, Smith Frozen Foods - 0 comments

Gordon Smith: Reaping Government Contracts, While Shortchanging Taxpayers

While Republican U.S. Sen. Gordon Smith was protesting the property taxes at Smith Frozen Foods, he was feeding off the public trough, scoring a huge federal contract and benefiting from special infrastructure projects.

“Gordon Smith has been feeding at the public trough, while squeezing local taxpayers,” DPO Communications Director Marc Siegel said. “Smith’s conduct as a corporate citizen will raise questions from voters. His leadership of the company is consistent with his work in Washington, D.C. – putting big special interests ahead of Oregonians.”

In 2001, Smith Frozen Foods fought to cut its property tax assessments by more than half, ultimately saving Gordon Smith more than $300,000 and cutting the City of Weston’s operating budget by nearly 10 percent. Smith Frozen Foods claimed the business was less profitable.
[Statesman Journal, 8/3/01; The Oregonian, 5/12/02]

But that doesn’t square with the millions of federal tax dollars Smith Frozen Foods received just months before. In 2000, Smith Frozen Foods was awarded a $3 million federal contract from the Agriculture Marketing Service, a department of the U.S. Department of Agriculture. Strangely, this infusion of federal money did not stop the company from claiming his business was less “profitable” months later.
[USAspending.gov, accessed 9/23/08; Statesman Journal, 8/3/01]

At the same time Smith was fighting with the state to lower his tax liability, he received $300,000 from the state for infrastructure improvements designated to help his company.
[Tri-City Herald, 12/21/02]

“Smith Frozen Foods began rail shipments from Weston, Ore., to Walla Walla this month, restarting rail service on tracks that had been unused for three years.

Shipping by rail will help Smith cut transportation costs and improve quality control on loads of frozen produce from its Weston processing plant, said Mike Hachquet, logistics manager.”
[Tri-City Herald, 12/21/02]

“Upgrading the rail line took about two months, McKechnie said. The Oregon Department of Transportation also spent about $ 300,000 on upgrading the line, he said.”
[Tri-City Herald, 12/21/02]

“Whether in Washington, D.C. or Weston, Gordon Smith puts his own interest above that of working families,” Siegel said. “He scored a federal contract worth millions, reaped millions for himself, but made families in Weston pay the price. Just like in Washington, D.C. where he stands up for special interests on Wall Street, while taxpayers are left holding the bag. Gordon Smith has just got it wrong.”

Discuss: Gordon Smith: Reaping Government Contracts, While Shortchanging Taxpayers

Posted September 24, 2008 in Economy, Smith Frozen Foods - 0 comments

Smith, McCain Say Economy Is “Strong” Shows “Vibrancy”

Republicans Caused This Mess, Now They are Out of Touch With How Bad It Is

Just as Wall Street is collapsing, Republican U.S. Senator Gordon Smith and Republican presidential candidate John McCain are praising the American economy and bragging about their involvement in this mess.

Old Column Unearths Gordon Smith Boasting About His Economic Policies – The Policies That Created Our Fiscal Mess

On the same day Smith held a closed to the press economic roundtable, he had to defend his own words reprinted in the September 2008 Jackson County Republican Party newsletter boasting he is “closely involved in formulating economic policies aimed at growing the American job market, and increasing the vibrancy of our economy.”
(Politicker OR, 9-19-08)

“Smith’s acknowledgement of the current economic crisis seemed to stand in contrast to an article published in the September 2008 Jackson County Republicans newsletter, where Smith's statements of working to create more employment opportunities were getting the American economy on the right track.”
(Politicker OR, 9-19-08)

“Smith also wrote in that newsletter that he anticipated that the American economy would ‘continue to expand’ through smaller government and disciplined spending.”
(Politicker OR, 9-19-08)

“Does Gordon Smith now recognize he was wrong, and that his dogmatic loyalty to Bushonomics is what tripped this fiscal mess,” asked DPO Chair Meredith Wood Smith. “Will he apologize for his misguided votes, vow to break from Bushonomics and do what’s best for Oregon?”

John McCain Claims The Fundamentals Of The Economy Are Strong

As this DNC video proves, McCain continues insisting that the fundamentals of the economy are strong. Even as financial institutions collapse, welfare rolls swell and families lose their homes, McCain desperately clings to the idea that the economy is fundamentally on the right track.

“I’d like to know what it would take for John McCain to think our economy is on the wrong track. Would he have to lose all seven homes to get the picture?” Wood Smith asked. “Gordon Smith and John McCain may be experts on Bushonomics, but that’s little comfort to Oregonians hanging on to their jobs and homes and facing rising costs for groceries, gas and health care. Smith and McCain are so out of touch, one boasts about his economic leadership while the other claims the economy is going strong. Do they understand what’s happening in Oregon? More importantly, do they even care?”

Discuss: Smith, McCain Say Economy Is “Strong” Shows “Vibrancy”

Posted September 21, 2008 in Economy - 0 comments

Ken Allen And Oregonians Remove The Governator’s Glamour To Reveal Gordon Smith’s Job Terminating Record

Not even the glitz and glamour of Hollywood’s biggest action star could distract Oregonians today from Republican U.S. Senator Gordon Smith’s economic record.

That’s because AFSCME Executive Director Ken Allen and Oregonians with Jobs With Justice, Democratic Party of Oregon, Oregon Fair Trade Campaign and other Oregon groups protested outside Smith’s fundraiser at the Oregon Convention Center. California’s Republican Governor Arnold Schwarzenegger headlined the event, although he ended up speaking via video rather than appearing in person.

“No glitzy guest from Hollywood can distract Oregonians from Smith’s real record,” Allen said to the about 50 protesters. “Gordon Smith has voted with President Bush to ship jobs overseas, increase our national debt and reward companies who relocate from Oregon. Gordon Smith is the real Terminator. He’s terminated our jobs.”

Both Schwarzenegger and Smith have loyally pursued and defended President Bush’s economic policies.

Four years ago Schwarzenegger labeled critics of President Bush’s economic policies, “economic girlie men.” Since then his state has lurched into economic chaos.

Smith has sided with President Bush and failed Oregon on trade, on outsourcing and on our national debt. He’s cost Oregon jobs, lowered wages and saddled our children with mounting debt.

Read more and discuss: Ken Allen And Oregonians Remove The Governator’s Glamour To Reveal Gordon Smith’s Job Terminating Record

Posted September 19, 2008 in Economy - 0 comments

Smith Hires Undocumented Workers, Then Gives Them English Safety Instruction

Smith’s Workers Suffer Serious Injuries As A Result

Following serious injuries at Smith Frozen Foods, OSHA investigators revealed that the company’s predominantly Mexican and Spanish-speaking workforce was being given “safety orientation” lessons in English.

On Wednesday, some Oregon news media reported proof that Gordon Smith employs undocumented workers at his food processing plant, Smith Frozen Foods, in Weston, Oregon. The evidence, originally reported by Willamette Week, included five Smith workers “who are – or were – undocumented when they worked for Smith Frozen Foods or a second related business owned by Senator Smith…”
[Willamette Week, 9/17/08]

Read more and discuss: Smith Hires Undocumented Workers, Then Gives Them English Safety Instruction

Posted September 18, 2008 in Economy, Smith Frozen Foods - 0 comments

SMITH DELIVERS FOR BIG OIL, NOT FOR OREGON

DSCC TV Ad shows what Smith’s tax breaks for big oil could mean for average Oregon families.

The Democratic Senatorial Campaign Committee released a new television ad today showing how the $18 billion that Gordon Smith gave in tax breaks to Big Oil could help average Oregon families – 407 bags of groceries, 298 tanks of gas, or two years of college tuition.

The DSCC recently launched the website www.BoughtByBigOil.com to expose Republican Senators’ support for policies that leave Americans paying at the pump while oil companies bring in record profits.

“The oil executives who fill Gordon Smith’s campaign coffers with cash have gotten huge tax breaks, while average Oregon families are left with higher prices at the pump,” DSCC spokesman Matthew Miller said. “Oregon families need help, but Gordon Smith is busy helping Big Oil instead.”

Discuss: SMITH DELIVERS FOR BIG OIL, NOT FOR OREGON

Posted August 15, 2008 in Economy, Smith Videos - 2 comments

DSCC Television Ad Links Smith’s Support For Big Oil To High Gas Prices

As gas prices continue to soar, the Democratic Senatorial Campaign Committee began airing a new television advertisement today highlighting the hundreds of thousands of dollars Gordon Smith has taken from Big Oil and his votes to give the industry billions of dollars in special tax breaks. The new ad comes as the DSCC also launched a new website www.BoughtByBigOil.com to expose Republican Senators’ support for policies that leave Americans paying higher gas prices while oil companies rack up hundreds of billions in profits.

“Gordon Smith’s campaign has been financed by the big oil companies that are making record profits at the expense of average Oregonians,” DSCC spokesman Matthew Miller said. “With hundreds of thousands of dollars of Big Oil money lining Gordon Smith’s campaign coffers, it’s no wonder he thinks they deserve billions in special tax breaks, but he is clearly out of touch with his constituents.”

Discuss: DSCC Television Ad Links Smith’s Support For Big Oil To High Gas Prices

Posted August 1, 2008 in Economy, Smith Videos - 0 comments

NEW VIDEO: DPO responds to Smith's latest negative campaign ad.

Gordon Smith and Jeff Merkley come from two very different places and fight for two very different things.

Smith favors tax cuts for the wealthy and big oil companies and denies tax cuts to the middle class. Now he is running the most negative campaign in the country, deceiving voters about Merkley’s record cutting taxes for working families.

Lending A Hand

Watch this video and see how Gordon Smith has opposed tax cuts for child care, college tuition, health insurance and small businesses.

At the same time he’s voted against middle class tax relief, been a rubber stamp for George Bush and delivered massive tax breaks for the wealthy and for Big Oil.

Negative Campaign

Gordon Smith is running the most negative campaign in the country. Yes, in the country.

How do we know?

Well, he’s run more negative ads than any other Republican up for reelection.

He was the only Republican in the country airing negative ads until just last week when U.S. Senator Pat Roberts of Kansas began airing negative ads.

He was the first Republican in the country to air negative ads attacking his Democratic challenger.

He was the only Republican Senator to air negative attack ads in a Democratic primary.

“For years Gordon Smith and George Bush have delivered tax cuts for Big Oil and opposed middle class tax cuts for Oregon’s working families,” DPO Chair Meredith Wood Smith said. “Now, Gordon Smith runs the most negative campaign in the country and distorts Jeff Merkley’s record. Jeff Merkley led the fight for tax relief for working families and restored fiscal responsibility in Salem. Gordon Smith should stop the Karl Rove politics and follow Merkley’s lead.”

Discuss: NEW VIDEO: DPO responds to Smith's latest negative campaign ad.

Posted July 16, 2008 in Economy, Smith Videos - 0 comments

More Pranks From Smith?

It’s April Fools’ Day. Do you know what jokes your Republican U.S. Senator is telling?

Gordon Smith’s Jokes:

Joke: He Understands And Fights For Working Families.

The Unfunny Truth:

Smith earns failing grades from the TheMiddleClass.org Congressional Scorecard and spent $1.25 million (easily the cost of four middle class homes in Oregon) on golf clubs.

Joke: He Votes With Ron Wyden And Against The Special Interests.

The Unfunny Truth:

Smith voted against Ron Wyden more than 1,600 times.

Smith cashes millions in special interest checks and appeases the special interest lobbyists with his votes. Big Oil checks paid for his opposition to tackling climate change and raising fuel standards. Pharmaceutical industry dollars bought his votes to raise seniors’ prescription drug prices.

Joke: He’s A Moderate.

The Unfunny Truth:

Oregon’s most prominent, non-partisan political pundit says Smith publicly claims to be a moderate but has a conservative voting record.

Joke: He Stands Up To President Bush.

The Unfunny Truth:

Smith stands with President Bush. He votes with him, has campaigned for him and raised money for him.

"Gordon Smith's loyalty to the special interests and opposition to Ron Wyden is no laughing matter to Oregonians," DPO Chair Meredith Wood Smith said. "While Smith swings away with his million dollar golf clubs he leaves Oregon's working families, seniors and our environment swinging in the wind."

Discuss: More Pranks From Smith?

Posted April 1, 2008 in Economy - 0 comments

Smith Double Bogeys On The Middle Class

Yesterday, we wrote about Gordon Smith’s penchant for million dollar golf clubs and exotic golfing locations.

Today, we learn about how he has whiffed on helping the middle class.

Smith received a D on TheMiddleClass.org 2007 Congressional Scorecard released today. The scorecard, a service from The Drum Major Institute for Public Policy, also gave Smith an F in 2005 and an F in 2004. So, that’s two Fs and a D for the middle class.

Oregon’s other U.S. Senator, Democrat Ron Wyden, received an A for his 2007 work.

“Do we need any more evidence that Gordon Smith votes for the special interests, not working families?” DPO Chair Meredith Wood Smith asked. “Do Oregon’s working families have to schedule a tee time with Gordon Smith to get his attention? Gordon Smith may be a golf fanatic, but when it comes to working families, he can’t find the fairway. Once again we see how Ron Wyden scores birdies for working families while Gordon Smith bogeys on their interests.”

According to TheMiddleClass.org the scorecard analyzes the impact of domestic legislation on America’s current and aspiring middle class.

From TheMiddleClass.org:

What Is The Middle Class?

The middle class is more than an income bracket. Over the past fifty years, a middle-class standard of living in the United States has come to mean having a secure job, the opportunity to own a home, access to health care, retirement security, time off for vacation, illness and the birth or adoption of a child, opportunities to save for the future and the ability to provide a good education, including a college education, for one’s children. When these middle-class fundamentals are within the reach of most Americans, the nation is stronger economically, culturally and democratically.

Most Americans identify themselves as middle class. Yet DMI is concerned not only with those who currently enjoy a middle-class standard of living, but also with expanding the middle class by increasing the ability and opportunities of poor people to enter the middle class. The middle class is strengthened when more poor people are able to work their way into its ranks. In a nation that is increasingly polarized between the very wealthy and everyone else, DMI sees the poor and middle class as sharing many of the same interests. Simply put: what strengthens and expands the middle class is good for America.

Discuss: Smith Double Bogeys On The Middle Class

Posted March 12, 2008 in Economy - 0 comments

Birdies For Special Interests. Bogeys For Working Families.

Now we understand why Gordon Smith supports President Bush’s failed fiscal policies and votes with the special interests rather than with Oregon’s working families.

He has a skewed economic perspective from too much time in the country club, not enough time with Oregon’s working families.

So much time, in fact, he thinks golf clubs are a good deal at $300,000 each.

Yes, $300,000 per club, or more than the cost of many homes in Oregon.

“Smith has always been a true golf fanatic. He once paid $1.25 million for four really vintage golf clubs - including a putter owned by King James IV in 1504 - and can speak at passionate length about golfing in Scotland, having done so several times.

In 2005, Golf Digest reported that Smith's handicap was 8.2 - good enough to put him at 41st on their list of D.C. movers and shakers who play the game.”
(Way West Of The Beltway, The Oregonian, 3-7-08)

“If Gordon Smith thinks paying the cost of four homes for four golf clubs is a good deal, no wonder he’s blindly supported tax windfalls for big oil, policies to keep big pharma raking it in and reckless tax cuts for the wealthy. Smith has no concept of the economic challenges facing Oregon families. When it comes to working families, he can’t find the fairway," DPO Communications Director Marc Siegel said. "The special interests have spent millions and millions buying Gordon Smith’s negligence on climate change, his opposition to reducing the cost of prescription drugs and his out of step positions on other issues. It turns out they could have just sent him a set of clubs.”

Discuss: Birdies For Special Interests. Bogeys For Working Families.

Posted March 11, 2008 in Economy, Who Loves Gordon? - 0 comments

Flyers on Smith's Labor Record

Read about Smith's anti-worker record, then print out some flyers and help spread the word!

Download flyer here.

Discuss: Flyers on Smith's Labor Record

Posted January 25, 2008 in Economy, Grassroots Resources, static - 0 comments

Tax Incentives For Offshore Industries - Low Wages For Workers

As Gordon Smith discusses economic development today at the Oregon Convention Center in Portland, here is the part of his record you won’t hear about.

As the Stop Gordon Smith campaign noted two months ago, he’s repeatedly voted against the minimum wage, and he voted against an amendment that would repeal tax incentives for companies that move their manufacturing plants offshore.

So, Smith doesn’t support a living wage for waiters, store clerks, assisted living workers and other folks trying to make a living, but will fight for tax incentives for major corporations that move jobs overseas.

But, don’t expect Smith to highlight that anti-worker part of his record today.

Discuss: Tax Incentives For Offshore Industries - Low Wages For Workers

Posted October 26, 2007 in Economy - 2 comments