Union Wins! Hostess Out of Business

[purplesky]

Fat Cat Union Bosses, "LET THEM EAT CAKE!"

It is instructive to see the fat-cat salaries that the union bosses receive. The March 2012 LM-2, the annual filing required by the Department of Labor for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union reveals that union bosses collectively received more than $3 million in compensation. The secretary treasurer takes down a whopping $196, 627 while the president rakes in $210,672. Hey, the Big Labor execs have their dough, so why should they sweat, a month before Christmas, about 18,500 employees going jobless? Perhaps they should adopt a new slogan for their union: Let ‘em eat cake.

This is from the left-wing liberal newspaper - The Washington Post.
Ding dongs - Big Labor strikes again - Right Turn - The Washington Post

Isnt income below $250k considered middleclass? Those salaries are really not that impressive for folks who represent thousands of workers.

 

[menotyou]

I had so much fun saying Ding Dongs in the store, too.

 

[purplesky]

A White House report sent to Congress in August 2012 estimated the sale of the remaining G.M. stock acquired by the United States Treasury during the company's bankruptcy would result in a loss of $25.1 billion to the American taxpayer.[SUP][85][/SUP] The total cost to the taxpayer will be determined after the government sells its 26% stake in G.M. and its 74% stake in Ally Financial, formally known as GMAC, G.M.’s financing arm.

• ^ Eisenstein, Paul A. (August 14, 2012). "Auto bailout cost now upped to $25 billion". NBC News. Retrieved August 14, 2012.

Current stock price $23.85 .
Break even point for US Gov't owned shares is $28.73 .

Dont forget to include the paychecks of all those good paying jobs that were saved. Those paychecks represent millions of dollars of consumer spending that fuel this economy. (THIS HELPS UPSERS.)

But you really dont want to point out any positives BABA because you hate OBAMA. Didnt we give billions in bailout money to the banks and Wallstreet? If I remember correctly the WALLSTREET BANKERS paid themselves huge bonuses WITH TAXPAYER MONEY?

 

[moreluck]

Will Twinkies prove a sweet deal for Mexican billionaire? | Fox News

 

[Babagounj]

Dont forget to include the paychecks of all those good paying jobs that were saved. Those paychecks represent millions of dollars of consumer spending that fuel this economy. (THIS HELPS UPSERS.)

But you really dont want to point out any positives BABA because you hate OBAMA. Didnt we give billions in bailout money to the banks and Wallstreet? If I remember correctly the WALLSTREET BANKERS paid themselves huge bonuses WITH TAXPAYER MONEY?

I was replying to Sleve's post about Gm.
If you want to post about other things , please rant on.
However , until bhos took office no one every used the phrase "saved" , nor have they fully explained just what it means.

 

[rod]

The Board most likely gave these top executives these raises in anticipation of executing the shutdown of the company.
As a shareholder or worker, when a troubled company's BOD increases top pay, that is a sign that these executives are being charged to shut the company down (and put themselves out of a job).
This is good common sense actions by the BOD encouraging the top executives to act in "enlightened self-interest" in the interests of the shareholders.

BTW - the BOD determines top executive (Management Committee) compensation ... the executives do not give themselves raises.

You are probably right but I bet both groups are walking around now with their arms in a sling from all the back patting and high five-ing that was going on last week. I can hear their parting words now---"See you in Mexico"---unions? we don't need no stinking unions" !

 

[Babagounj]

Now who's shipping jobs overseas ?

 

[rod]

Some people have never heard of Bimbo, so I was making sure they knew what it was.............Guess what? They just mentioned Bimbo on FOX related to the Hostess story. So it's relevent!!!!

I just guessed at Bimbo.......now it's on the news...........score one for me!!

I cut and paste the site so I don't have to type the entire thing on here........

Count me as one who has never heard of Bimbo Bakeries. As far as I know they don't sell their stuff this far north. Thats why we like our cold winters here----it keeps the riff-raff out.

 

[wkmac]

If we "ACTUALLY" knew all the facts in the collapse of Hostess, it would likely be like the failure of a typical marriage in divorce court. It's rarely that such marriage ends because of blame purely on one side.

 

[brett636]

If we "ACTUALLY" knew all the facts in the collapse of Hostess, it would likely be like the failure of a typical marriage in divorce court. It's rarely that such marriage ends because of blame purely on one side.

The facts are simple. Income was not matching or exceeding expenses causing the company to go into bankruptcy. The bakers union didn't have enough respect for the fragility of their job situation that they voted to let it all go thinking it wouldn't actually happen.

 

[wkmac]

The facts are simple. Income was not matching or exceeding expenses causing the company to go into bankruptcy. The bakers union didn't have enough respect for the fragility of their job situation that they voted to let it all go thinking it wouldn't actually happen.

Unlike you Brett, I can see where the Free Market Killed Hostess and That's Not A Bad Thing!

 

[MenInBrown]

If we "ACTUALLY" knew all the facts in the collapse of Hostess, it would likely be like the failure of a typical marriage in divorce court. It's rarely that such marriage ends because of blame purely on one side.

Yep, poor management and a union calling a bluff.

 

[iowa boy]

Count me as one who has never heard of Bimbo Bakeries. As far as I know they don't sell their stuff this far north. Thats why we like our cold winters here----it keeps the riff-raff out.

Rod,

Down here in not so cold Iowa, Bimbo bought out Sara Lee bakeries so we are seeing them now down here so they willl eventually make it to the frozen tundra of Minnesota.

 

[rod]

Rod,

Down here in not so cold Iowa, Bimbo bought out Sara Lee bakeries so we are seeing them now down here so they willl eventually make it to the frozen tundra of Minnesota.

I was afraid of that. We have had a few mild winters of late so all us hardcore Minnesotians are keeping our fingers crossed for a long cold winter with tons of snow. Thanks for the headsup.

 

[BrownArmy]

The facts are simple. Income was not matching or exceeding expenses causing the company to go into bankruptcy. The bakers union didn't have enough respect for the fragility of their job situation that they voted to let it all go thinking it wouldn't actually happen.

Where does the extra debt forced onto the company through a leveraged buyout fit into your equation?

 

[Catatonic]

Where does the extra debt forced onto the company through a leveraged buyout fit into your equation?

The employees had their jobs for 3 more years than they would have if the leveraged buyout had not happened.

Hostess should have been liquidated in 2009 but I am glad for the employees that they had their jobs for 3 more years.

 

[menotyou]

Did you know that the CEO of Hostess tripled his yearly wage while the bakers went from $45k a yr, to $28k in order to keep the business afloat?

 

[moreluck]

The employees had their jobs for 3 more years than they would have if the leveraged buyout had not happened.

Hostess should have been liquidated in 2009 but I am glad for the employees that they had their jobs for 3 more years.

I agree, good that they had their jobs for 3 more years...........did any of them plan, save, or do anything for the coming crisis?? Probably not.

 

[Catatonic]

The Board most likely gave these top executives these raises in anticipation of executing the shutdown of the company.
As a shareholder or worker, when a troubled company's BOD increases top pay, that is a sign that these executives are being charged to shut the company down (and put themselves out of a job).
This is good common sense actions by the BOD encouraging the top executives to act in "enlightened self-interest" in the interests of the shareholders.

BTW - the BOD determines top executive (Management Committee) compensation ... the executives do not give themselves raises.

Did you know that the CEO of Hostess tripled his yearly wage while the bakers went from $45k a yr, to $28k in order to keep the business afloat?

Yes, as was discussed earlier.
The CEO's job and other key management people's job is to protect the investments of the investors of the company.
To "motivate" the CEO, his salary was increased to compensate putting himself out of a job - enlightened self-interest for the investors.
It does not seem right but it works for the investors.

In some companies, the CEO and his/her reports balk and want to save the company.
They are fired with a "golden parachute" bonus and a group of "hackers" come in and run the company to maximize the investor's investment.

 

[bluehdmc]

I think meno's comment was the bakers took concessions and the CEO and other's salaries were increased long before the the decision was made to shut the doors. This sounds exactly like what Bain Capital did when the destroyed K-B toys, this seems to be SOP when the vulture capitalists zoom in on a company.

It sounds like the CEO's make out either way, if they let the company dissolve they've been able to suck a couple years at a greater inflated salary for a couple of years or if they try to save the company they get canned with a "golden parachute".
Seems like the only losers are the working people, instead of inflated wages they took concessions and reduce their wages by more than 1/3. When they balk at further cuts they shut the doors, (which seems to be the plan from the beginning), the working people get the blame.