Quote: (11-17-2012 10:59 PM)ManAbout Wrote:
http://politix.topix.com/homepage/3442-u...bankruptcy
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"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."
Socialist Thugs!
Isn't it obvious? They were cashing out on the biz after the union had gutted it out completely.
Since they knew Hostess was completely dead due to their bankrupting union, they gave themselves raises as they knew they'd be without jobs by the end of the year.
Here's some evidence for what I'm claiming. Keep in mind this was written in Feburary of 2012, so, as usual, Forbes was calling the shots long in advance of what would ultimately happen.
http://www.forbes.com/sites/kylesmith/20...-twinkies/
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But in an affidavit filed by its chief executive Brian J. Driscoll, Hostess did report sales: $2.5 billion last year. Among convenience-store snacks, Driscoll said, Hostess Donettes are the no. 1 seller, with the company’s brands holding down four of the top five slots and nine of the top 20.
Doesn’t sound like America has entirely switched to carrot sticks and celery, does it? Hostess’s problem isn’t that its customers have suddenly lost their appetite. It’s that unions are devouring the company from the inside out.
Hostess, unlike its chief competitors, is heavily unionized (83 percent of its work force), principally by the Teamsters and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. These unions are doing what unions do best: Endangering the financial health of the company and ultimately the continued delivery of ts own members’ paychecks.
Hostess provides pensions via 40 multiemployer pension plans, Driscoll said. That has left the company on the hook for the obligations of other companies that have been driven out of business. Hostess does not “have a competitive cost structure and cannot achieve viability on a long-term sustainable basis,” Driscoll said.
The Teamsters’ response: So what? Pay us. Rather than negotiate in good faith, the Teamsters threatened this week to strike, and they claim 90 percent of its voting workforce has backed the idea. They might do well to purchase a copy of the February 6 edition of the New Yorker, which detailed how union demands drove the Stella D’Oro cookie factory out of business in the Bronx, New York City.
Workers there refused to even consider ending the practice of getting a paid holiday on their birthdays each year. How did that intransigence work out? Despite the interference of an NLRB judge who told Stella D’Oro to essentially do the bidding of the BCTGM union, the marketplace eventually won. Today the cookie brand produces its goods in a non-union bakery in Ohio.
Hostess is saddled with 372 collective bargaining agreements, 80 different health and pension benefit plans and workers’ compensation costs that last year hit $52 million–which works out to over $2700 for each of its 19,000 employees.
Hostess had one of the most generous pension plans I've ever seen, and the union employees were demanding more? In a down economy?
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When the Hostess man delivers product to the store, he isn’t allowed to move items from storage to the shelves; instead, a different employee, called a “pull-up” worker, has to do that job. Oh, and if both cakes and bread are involved? You guessed it: there’s a cake pull-up and a bread pull-up. One guy couldn’t possibly do the same task. If Hostess wants to enter a new market, work rules still apply.
The union forced Hostess to create extra jobs for more employees?
I mean this is just a clear cut case of a ridiculous, bullshit union, I'm not surprised at all that the CEO's gave themselves huge raises right before the entire thing crashed to the ground.
If I was the CEO of Hostess I would have also said, "Fuck these cocksuckers" and bailed on them too.
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