Hostess Blames Union For Bankruptcy After Tripling CEO’s Pay

Why the strong hate for Unions? I have some pretty negative feelings about Unions as well. But theoretically they're good things.

[ame=http://www.youtube.com/watch?v=lv5DpBx2Tg4]May Day with Socialists, Marxists, Trumka and the Mayor - YouTube[/ame]

Any questions? Theses socialists single handedly reelected Obama


[ame=http://www.youtube.com/watch?v=soV79czwzoo&feature=related]AFL-CIO President Richard Trumka Supporting Occupy Wall Street - YouTube[/ame]
 
It's hitting Seattle pretty hard as Hostess had a large factory here. Not sure really what to think about this.

Unions could have agreed to cuts in wages and benefits and kept
the company in business and would have still had a job.

But they chose this...

Can't blame them I guess....
This way they get on the Obama gravy train and get
2 years of UE insurance.Probably get that Obama care to kick in.
Then there's the food stamps and free cell phone.

Hey what's not to like.

And they get to stay home and curse at the republican rich fucks who are supporting
them... :tongue:

I guess you missed this part:
BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256.
 
I suspect liquidation was inevitable given the way the company was run, this way they get to blame the workers rather than the looting of the company by a greedy hedge fund. It's not the first time a company has been squeezed to the breaking point, it's pretty standard to start chiseling the employees right off the bat and sell off if they cannot successfully kill the pension plan.
 
It's hitting Seattle pretty hard as Hostess had a large factory here. Not sure really what to think about this.

Unions could have agreed to cuts in wages and benefits and kept
the company in business and would have still had a job.

Or the top level management could have not tripled their own salaries. How the hell is it the union's fault when there's obviously enough money to pay each executive enough for 3?
 
It's hitting Seattle pretty hard as Hostess had a large factory here. Not sure really what to think about this.

Unions could have agreed to cuts in wages and benefits and kept
the company in business and would have still had a job.

But they chose this...

Can't blame them I guess....
This way they get on the Obama gravy train and get
2 years of UE insurance.Probably get that Obama care to kick in.
Then there's the food stamps and free cell phone.

Hey what's not to like.

And they get to stay home and curse at the republican rich fucks who are supporting
them... :tongue:

I guess you missed this part:
BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256.
Hard to think that didn't contribute to their problems.
 
59666_4322699018911_443135130_n.jpg
 
UPDATED: HOSTESS & UNION AGREE TO MEDIATION, COMPANY SHUTDOWN TEMPORARILY AVOIDED


CNBC just a few moments ago tweeted the following:

CNBC
✔
@CNBC
BREAKING: Hostess and Bakers Union agree to mediation, preventing shut down.
19 Nov 12 ReplyRetweetFavorite




If mediation leads to an agreement between the snack maker and the Bakers Union, it will mean that a) 18,000+ people just narrowly escaped joining the unemployment line and b) we ate all those Twinkies for nothing.

UPDATE — ​Lest there be some confusion, “mediation” doesn’t mean that a deal has been reached. It just means that both parties have agreed to sit down and hash out their differences.

“The news came Monday after Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week,” the Associated Press reports.

The bankruptcy judge hearing the case noted that neither party had gone through the critical step of mediation and suggested they do that before any further action be taken.

“Moving to a liquidation is also a significant economic hit, and I think that many people, myself included, have serious questions as to the logic behind the decision to strike and a concern that it may be as a result of differences as far as information and goals,” U.S. Bankruptcy Judge Robert Drain said on Monday.

“I’m giving the union, as well as the debtors and their lenders, the last chance,” he added.

Both parties agreed.

However, if both parties fail to come to an agreement, the bankruptcy hearing will resume Wednesday at 11 a.m ET.

UPDATE II — Hostess CEO Gregory Rayburn weighs in on the news [via the AP]:

… Rayburn said that there is enormous financial pressure to come to an agreement with the union by the end of the day Tuesday. He noted that it’s costing Hostess about $1 million a day in payroll costs alone to keep the company alive.


“We didn’t think we had a runway, but the judge just created a 24-hour runway,” said Rayburn, who added that even if a contract agreement is reached, it’s unclear whether all 33 Hostess plants operate again.




Hostess & Bakers Agree to Mediation | TheBlaze.com
 
Yeah. First amendment rights are such a bad thing.


Quite ironic from the guy starting a thread whining about a business exercising their right to pursue happiness.

Corporations are not people, they are inanimate objects. They are a legal body on a piece of paper. Therefore, they do not apply to the constitutional bill of rights.



And to fire people in attempt to make an excuse about obamacare is just low. Especially when it will only cost a few million compared to the $22 million worth in free pizzas that they will give away willy nilly.

then go start a business and employe those 18,ooo people..
let us know when you do
a CEO's pay is none of your all's business, so you have a thinkprogess FAIL, but nothing new for thinkprogess..the site for non-thinking people
 
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It's hitting Seattle pretty hard as Hostess had a large factory here. Not sure really what to think about this.

Unions could have agreed to cuts in wages and benefits and kept
the company in business and would have still had a job.

But they chose this...

Can't blame them I guess....
This way they get on the Obama gravy train and get
2 years of UE insurance.Probably get that Obama care to kick in.
Then there's the food stamps and free cell phone.

Hey what's not to like.

And they get to stay home and curse at the republican rich fucks who are supporting
them... :tongue:

Obama didn't invent unemployment insurance dumbass.
 
Well, one thing for sure, 18,000 employees are dependant on your tax dollar.

After the CEO and Management's fuckup and pay increase for themselves.

If you have 20 trucks, 12 delivering Wonder Bread and 8 delivering twinkees and cupcakes. Management figures out that cost savings and synergies can be achieved by reducing trucks and consolidating deliveries and routes. Unfortunately, some jobs will be lost. Management goes to implement the move and realize they can't do this cost savings move will be lost due to Union mandates requiring all desert products on one truck and bread products on the other. No mixing of deliveries.

The Union saved all of the driver jobs. Union bosses reward themselves with pay increases funded by the workers. Now, ALL jobs are lost.

Hey, if you don't like the CEO increasing his pay, go work for another company. Go drive for another company. No jobs in the region? Move where the jobs are. Or, go start your own business. Become a CEO. You can then increase your own pay.
 

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