Hostess rips off workers pension

[Dreamy]

So, has anyone here ever run a company with a union work force? Responsible for meeting a payroll? How about representing a company during contract negotiations? Apparently there are several here that have extensive business experience and all the answers, bring it on.

So what went wrong at Hostess?

 

[bucs90]

They'll answer that it is "just business" and that Hostess owes them NOTHING and if they dont like their job quit.

 

[SniperFire]

So, has anyone here ever run a company with a union work force? Responsible for meeting a payroll? How about representing a company during contract negotiations? Apparently there are several here that have extensive business experience and all the answers, bring it on.

So what went wrong at Hostess?

Little Debbies.

 

[Lakhota]

So, has anyone here ever run a company with a union work force? Responsible for meeting a payroll? How about representing a company during contract negotiations? Apparently there are several here that have extensive business experience and all the answers, bring it on.

What is lower than management stealing pension funds?

 

[oldfart]

It's what lawyers call betrayal without remedy," said James P. Baker, a partner at Baker & McKenzie LLP who specializes in employee benefits and isn't involved in the Hostess case. "It's sad, but that stuff does happen, unfortunately." ~ Laura Clawson

This is pretty much standard for the vulture capital industry. Most of the workers are probably OK, the Pension Benefit Guaranty Corporation will take most of the hit. That means the taxpayers get to pay for it. The bankruptcy system is rotten to the core and this is only one example of the perverse incentives built into it.

 

[SniperFire]

So, has anyone here ever run a company with a union work force? Responsible for meeting a payroll? How about representing a company during contract negotiations? Apparently there are several here that have extensive business experience and all the answers, bring it on.

What is lower than management stealing pension funds?

The money was used for operating expenses, or in other words, to pay the workers their inflated salaries.

No extra pension money for you!

 

[boedicca]

By Bonnie Kavoussi

Hostess Brands acknowledged for the first time in a news report Monday that the company diverted workers' pension money for other company uses.

The bankrupt baker told The Wall Street Journal that money taken out of workers' paychecks, intended for their retirement funds, was used for company operations instead. Hostess, which was under different management at the time the diversions began in August 2011, said it does not know how much money it took.

"It's not a good situation to have," Hostess CEO Gregory Rayburn told the WSJ.

"Whatever the circumstances were, whatever those decisions were, I wasn't there," Rayburn added. As the founder and owner of Kobi Partners, a restructuring advisory firm, Rayburn was appointed acting CEO in March 2012.

Hostess Brands, which filed for bankruptcy for a second time in January, started liquidating its operations in November after the bakers' union refused to take another pay cut and went on strike. The liquidation will leave about 18,000 workers without jobs.

More: Hostess Workers' Pension Money Diverted For Other Uses: Report

If you object to this, then you should be incredibly outraged over how the Obama Administration fucked over Delphi employees regarding their pensions.

Just sayin'.

 

[hazlnut]

Who gives a fuck? Obama is out there creating government jobs left AND right.

This is a drop in the bucket, so fuckit.

Let them go to work for one of those government-created solar companies.

Typical TeaPod.

you'll vote against your interest and celebrate the crooks who gut your pension.

then demand health care in your old age.

 

[SniperFire]

Who gives a fuck? Obama is out there creating government jobs left AND right.

This is a drop in the bucket, so fuckit.

Let them go to work for one of those government-created solar companies.

Typical TeaPod.

you'll vote against your interest and celebrate the crooks who gut your pension.

then demand health care in your old age.

The pension's weren't gutted, ignit libtard. Read the article. There were no extra contributions because the revenues went to operating expenses - or in other words, paying the bloated union worker salaries longer than they should have.

 

[Staidhup]

So, has anyone here ever run a company with a union work force? Responsible for meeting a payroll? How about representing a company during contract negotiations? Apparently there are several here that have extensive business experience and all the answers, bring it on.

What is lower than management stealing pension funds?

The money was used for operating expenses, or in other words, to pay the workers their inflated salaries.

No extra pension money for you!

Very good, one of the secondary and final indicators is the failure of a company to pay quarterly employee federal, state and FICA withholding taxes. When a firm is unable secure short term financing to cover operating expenses they make cuts in an attempt to remain solvent. The bottom line remains, a company must make a profit or remain cash flow neutral with the hope of restructuring to make a profit in the near future or shut the doors. Businesses cannot exist as cash flow neutral operations for extended periods and at the same time remain solvent within the covenants and restrictions imposed by their lenders.

Another indictor and excellent example is the unfunded pension liabilities of General Motors. Need I say more?

 

[Dreamy]

Who gives a fuck? Obama is out there creating government jobs left AND right.

This is a drop in the bucket, so fuckit.

Let them go to work for one of those government-created solar companies.

Typical TeaPod.

you'll vote against your interest and celebrate the crooks who gut your pension.

then demand health care in your old age.

The pension's weren't gutted, ignit libtard. Read the article. There were no extra contributions because the revenues went to operating expenses - or in other words, paying the bloated union worker salaries longer than they should have.

They went to the well too many times.

 

[CrusaderFrank]

Who Killed Hostess Brands and Twinkies?

Get better informed, TeaPods, it wasn't the Union.

Time for a reality check.

Hostess has been sold at least three times since the 1980s, racking up debt and shedding profitable assets along the way with each successive merger. The company filed for bankruptcy in 2004, and again in 2011. Little thought was given to the line of products, which, frankly, began to seem a bit dated in the age of the gourmet cupcake. (100 calorie Twinkie Bites? When was the last time you entered Magnolia Bakery and asked about the calorie count?)

As if all this were not enough, Hostess Brands’ management gave themselves several raises, all the while complaining that the workers who actually produced the products that made the firm what money it did earn were grossly overpaid relative to the company’s increasingly dismal financial position.

Another example of CEO incompetence and greed devastating the middle class workers.

Google: Richard Gephardt & Hostess

 

[oreo]

By Bonnie Kavoussi

Hostess Brands acknowledged for the first time in a news report Monday that the company diverted workers' pension money for other company uses.

The bankrupt baker told The Wall Street Journal that money taken out of workers' paychecks, intended for their retirement funds, was used for company operations instead. Hostess, which was under different management at the time the diversions began in August 2011, said it does not know how much money it took.

"It's not a good situation to have," Hostess CEO Gregory Rayburn told the WSJ.

"Whatever the circumstances were, whatever those decisions were, I wasn't there," Rayburn added. As the founder and owner of Kobi Partners, a restructuring advisory firm, Rayburn was appointed acting CEO in March 2012.

Hostess Brands, which filed for bankruptcy for a second time in January, started liquidating its operations in November after the bakers' union refused to take another pay cut and went on strike. The liquidation will leave about 18,000 workers without jobs.

More: Hostess Workers' Pension Money Diverted For Other Uses: Report

Twinkies--will now be made in Mexico.

 

[hazlnut]

I wonder how many people who had their pensions gutted voted Republican.

 

[Si modo]

Imagine that....Hostess pullls a government Social Security.

 

[StevenC]

By Bonnie Kavoussi

Hostess Brands acknowledged for the first time in a news report Monday that the company diverted workers' pension money for other company uses.

The bankrupt baker told The Wall Street Journal that money taken out of workers' paychecks, intended for their retirement funds, was used for company operations instead. Hostess, which was under different management at the time the diversions began in August 2011, said it does not know how much money it took.

"It's not a good situation to have," Hostess CEO Gregory Rayburn told the WSJ.

"Whatever the circumstances were, whatever those decisions were, I wasn't there," Rayburn added. As the founder and owner of Kobi Partners, a restructuring advisory firm, Rayburn was appointed acting CEO in March 2012.

Hostess Brands, which filed for bankruptcy for a second time in January, started liquidating its operations in November after the bakers' union refused to take another pay cut and went on strike. The liquidation will leave about 18,000 workers without jobs.

More: Hostess Workers' Pension Money Diverted For Other Uses: Report

They probably got the idea from the politicians that have been using SS money to fund things.

 

[Sallow]

They kept the doors open. That was stupid. They should gave gone out of business then and canned all their asses.

I guess I'm not surprised the obvious didn't occur to you.



Here's a better idea: FIRE THE INCOMPETENT CEOs



How bad is upper management when they run a major American brand like Twinkie into the ground? I mean, you'd have to be the worst businessmen in history to destroy this brand...

And they wanted a bonus!!

AIG got bonuses, even after obama made a big deal of it:lol:


and while you are ruminating on that go check on the pension balances of SEIU's unions.....

And you like this practice?

 

[Sallow]

Imagine that....Hostess pullls a government Social Security.

Except they didn't.

 

[Katzndogz]

Who Killed Hostess Brands and Twinkies?

Get better informed, TeaPods, it wasn't the Union.

Time for a reality check.

Hostess has been sold at least three times since the 1980s, racking up debt and shedding profitable assets along the way with each successive merger. The company filed for bankruptcy in 2004, and again in 2011. Little thought was given to the line of products, which, frankly, began to seem a bit dated in the age of the gourmet cupcake. (100 calorie Twinkie Bites? When was the last time you entered Magnolia Bakery and asked about the calorie count?)

As if all this were not enough, Hostess Brands’ management gave themselves several raises, all the while complaining that the workers who actually produced the products that made the firm what money it did earn were grossly overpaid relative to the company’s increasingly dismal financial position.

Another example of CEO incompetence and greed devastating the middle class workers.

All those CEOs were fired! They were replaced by CEOS who had to agree to a salary of a dollar a year.

Then the Baker's Union decided to push the company into bankruptcy. Which may be a good thing in the end as more than 18,000 people will be unemployed. Maybe then they will get a clue. Move to a right to work state and don't have the unions to worry about anymore.

 

[SniperFire]

Who Killed Hostess Brands and Twinkies?

Get better informed, TeaPods, it wasn't the Union.

Time for a reality check.

Hostess has been sold at least three times since the 1980s, racking up debt and shedding profitable assets along the way with each successive merger. The company filed for bankruptcy in 2004, and again in 2011. Little thought was given to the line of products, which, frankly, began to seem a bit dated in the age of the gourmet cupcake. (100 calorie Twinkie Bites? When was the last time you entered Magnolia Bakery and asked about the calorie count?)

As if all this were not enough, Hostess Brands’ management gave themselves several raises, all the while complaining that the workers who actually produced the products that made the firm what money it did earn were grossly overpaid relative to the company’s increasingly dismal financial position.

Another example of CEO incompetence and greed devastating the middle class workers.

All those CEOs were fired! They were replaced by CEOS who had to agree to a salary of a dollar a year.

Then the Baker's Union decided to push the company into bankruptcy. Which may be a good thing in the end as more than 18,000 people will be unemployed. Maybe then they will get a clue. Move to a right to work state and don't have the unions to worry about anymore.

Please, Katz. Spare us actual facts. This is a Libtard rant.