Twinkie CEO Admits Company Took Employees Pensions and Put It Toward Executive Pay

[Lakhota]

By Thom Hartmann

Hostess company continues to screw over its workers.

Twinkie-maker Hostess continues to screw over its workers. The company is in the process of complete liquidation and 18,000 unionized workers are set to lose their jobs. More troubling – they could lose their pensions.

According to a report by the Wall Street Journal, Hostess’ CEO, Gregory Rayburn, essentially admitted that his company stole employee pension money and put it toward CEO and senior executive pay (aka “operations”). While this isn't technically illegal, it's another sleazy theft by Hostess executives - who've paid themselves handsomely while running their company into the ground. Just last month, a judge agreed to let Hostess executives suck another $1.8 million out of the bankrupt company to pay bonuses to CEOs.

If there's no way to recover the money for the Hostess pension plans for workers, then we the taxpayers - through the Pension Benefit Guaranty Corp. - will have to foot the bill to make sure workers get the retirement money they paid in.

Hostess shows us clearly what Bain-style predatory capitalism is all about: big bucks for the very few rich executives, layoffs and poverty for the workers and their communities.

More: Twinkie CEO Admits Company Took Employees Pensions and Put It Toward Executive Pay | Alternet

 

[Lakhota]

I repeat...

If there's no way to recover the money for the Hostess pension plans for workers, then we the taxpayers - through the Pension Benefit Guaranty Corp. - will have to foot the bill to make sure workers get the retirement money they paid in.

 

[Rat in the Hat]

So you copy a thread that already exists just to get 25 cents for an alternet post?

How pathetic.

 

[Lakhota]

Now we know it was used for executive pay - and taxpayers may have to replace it.

 

[JimH52]

Who needs a Union? The Man is doing well!

 

[Rat in the Hat]

So you copy a thread that already exists just to get 25 cents for an alternet post?

How pathetic.

Hey, wait a minute. YOU started the other thread to get 25 cents for a HuffyPuffy link.

http://www.usmessageboard.com/politics/266935-hostess-rips-off-workers-pension.html

Pathetic^2

 

[Lakhota]

Rat is a loser. Never has anything constructive to offer.

 

[Rat in the Hat]

Rat is a loser. Never has anything constructive to offer.

Maybe you need your neighbor to issue a cease & desist on me.

 

[Mustang]

I repeat...

If there's no way to recover the money for the Hostess pension plans for workers, then we the taxpayers - through the Pension Benefit Guaranty Corp. - will have to foot the bill to make sure workers get the retirement money they paid in.

Privatize the profits, socialize the costs. Plenty of American corporations play a version of this game. Coal (You know? CLEAN coal?) companies play this game by failing to install scrubbers to take a lot of the air pollution out of their emissions which end up causing respiratory illnesses (and death) that taxpayers may have to pay for.

Walmart engages in a version where their employees can't afford healthcare because they don't work enough hours to qualify for the company plan and ultimately have to go to an emergency room on the taxpayers' dime.

There are LOTS of examples.