Twinkees Dead, Union Charged with Ho-Homicide..

[700UW]

Management missteps were another problem. Hostess came under fire this spring after it was revealed that nearly a dozen executives received pay hikes of up to 80 percent last year even as the company was struggling. Although some of those executives later agree to reduced salaries, others - including former CEO Brian Driscoll - had left the company by the time the pay hikes came to light.

Read more here: http://www.charlotteobserver.com/2012/11/16/3669374/hostess-to-close-cites-nationwide.html#storylink=cpy​

 

[southwind]

well, they did, en masse. Cant really blame strikers if Hostess fired the non union workers.

The B.O.D. basicly said F' em all.

The B.O.D. basically said F' em all because of a few employees !

Quit 'trying' to come across as a Union Sympathizer..living in (God Forsaken) GEORGIA.

"G-M-A-F-Break" !!!!!!!!!

And your bigotry shines through again ! Whether I believe in unions or not, I would not cross a picket line, "Bigot". Oh and if it wern't for a particular union, Boeing would be helping Barrack improve the un-employment rate in S.C. right now , Dolt !

They didnt turn down anything, their CBA was abrogated and they had one imposed, they went on strike because of the abrogation.

Are you talking about the one where the Judge, in the case, said he believed that was the best they could do?

 

[RDU Jetblast]

The B.O.D. basically said F' em all because of a few employees.

The few employees had a right to strike. They may have felt it was time either heal their lame horse or put it down .

It is ok to feel bad for the non union employees. But dont blame it on lAborors who toil in 120 degree rooms, 24/7, who didnt want to toil for less. Blame it on the highly educated business people who failed at running a business.

Let them eat cake.

 

[Kev3188]

Are you talking about the one where the Judge, in the case, said he believed that was the best they could do?

Are you asking about this specific case, or about the abrogation process itself?

 

[NewHampshire Black Bears]

Are you asking about this specific case, or about the abrogation process itself?

Save your breath Kev,.....I'm still waiting for this NINCOMPOOP to educate us on What he knows about collective bargaining, what he does for work, and where.
(I mean, he knows all about us (you and I) but is keeping 'his, close-to-the-vest' ) !

 

[delldude]

Listen Dude ! All I'm saying is that in "THIS" economic climate, now is not a good time to put your job on the line,,,,,,,,,,,,no matter how many times you've been at the negoiation table and like it or not that "IS" the reality ! Teamsters seem to think a strike was not needed !

Again, my compassion goes out to the "NON-Union" employees, who lost their jobs and no one else !

Non union employees....that rings a bell with Obama and GM.......Delphi anyone?

 

[eolesen]

Non union employees....that rings a bell with Obama and GM.......Delphi anyone?

I'll say it again, Hostess may just be an example of where GM is likely to wind up.

Hostess's Democrat owner was working *with* the Teamsters to try and keep the company alive, and even put Dick Gephart's son on the board of directors. But nobody was willing to back the tough decisions needed to save the company (which would of course have impacted the unions disproportionately).

A more current article written by the same source Tree quoted yesterday.

http://management.fortune.cnn.com/2012/11/16/the-end-of-hostess/


The parallels to the airlines are interesting. UA, NW, DL, and CO made the tough calls early on, and are still around. US didn't do so the first time, and had to go back into bankruptcy and get a lifeline from HP.

AA decided to not make the tough calls, and has been mortally wounded as a result. Tough calls have now been made, but the impending recession stands in their way, and we know that 4Q and 1Q can be brutal with regard to cashflow.

If the US economy starts to drop back, there's a chance AA may not make it out of bankruptcy, and would wind up being carved up. It's an extreme, perhaps (and it's been discussed ad nauseum in the AA forum). But AA's as powerful a brand as Twinkees, and the example of what happened to Hostess really underscores that there's no such thing as too big or famous to fail.

 

[700UW]

First of all US didnt get a lifeline from HP, US raised all the cash for the merger. And US went into the second chapter 11 filing because of a major loss in two arbitration cases and to lower lease costs again, Siegel's POR failed and to come back and get the rest of the employees pensions.

I guess you fail to realize the BCTGM and other unions gave three rounds of concessions and the company is currently on their seventh CEO, each one of them failed the company over the past 10 years.

Yep dont let those pesky facts get in the way.

http://blog.workinga...ying-the-price/

• Hostess is in bankruptcy for the second time since 2009.
• For the past 8 years, Hostess has been owned by Wall Street investors: so-called “restructuring experts,” managers from other non-baking food companies, and now a “liquidation specialist.”
• The Wall Street investors that own Hostess have no interest in the company succeeding – very similar to the situation of Bain Capital and KB Toys in 2000.
• Hostess has had six CEO’s in 8 years, none of whom had any experience in the bread or cake baking industry. This, not any action by the unionized workers, led to their failure.
• Hostess workers made numerous concessions, including this year when the company stopped making contributions to their pensions. They went on strike because management offered a contract cutting wages and benefits by 27-32 percent.
• Despite their troubles, Hostess’ CEO got a 300 percent raise, from $750,000 to $2,250,000. Other top executives have also gotten raises worth hundreds of thousands of dollars.
• Earlier this week when workers at 20 plants went on strike, Hostess management claimed they would close plants in response. In fact, they already had plans to close at least nine plants as part of a company-wide reorganization. The Mayor of St. Louis said of the closings “I was told months ago…”

 

[700UW]

http://thinkprogress...tesss-downfall/

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.

Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000.
Gary Wandschneider, EVP, $500,000 to $900,000.
John Stewart, EVP, $400,000 to $700,000.
David Loeser, EVP, $375,000 to $656,256.
Kent Magill, EVP, $375,000 to $656,256.
Richard Seban, EVP, $375,000 to $656,256.
John Akeson, SVP, $300,000 to $480,000.
Steven Birgfeld, SVP, $240,000 to $360,000.
Martha Ross, SVP, $240,000 to $360,000.
Rob Kissick, SVP, $182,000 to $273,008.

 

[SparrowHawk]

http://thinkprogress...tesss-downfall/



Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000.
Gary Wandschneider, EVP, $500,000 to $900,000.
John Stewart, EVP, $400,000 to $700,000.
David Loeser, EVP, $375,000 to $656,256.
Kent Magill, EVP, $375,000 to $656,256.
Richard Seban, EVP, $375,000 to $656,256.
John Akeson, SVP, $300,000 to $480,000.
Steven Birgfeld, SVP, $240,000 to $360,000.
Martha Ross, SVP, $240,000 to $360,000.
Rob Kissick, SVP, $182,000 to $273,008.

Take the total of the executive salaries and divide them by 5000 and tell me what you come up with?

I came up with $6,279,264 divided by 5000 = $1,255 per Bakery union employee or just $348.48 for each of the 18000 employees..

I get very weary of the Class Warfare aspects of these conflicts as the 8% concession on the average income of $34,000 would be just over double the amount of money if the executives had worked for FREE. When you factor in the whole 18K it gets worse.

The company was clearly a disaster from Management to rank & file. The company was a debt monster. How much of that was pension liability we don't know. However when most older companies with a union workfoce go C11 twice in 10 years the defined benefit pension plan is often the culprit.

Next on the list of companies in the crapper could be Supervalu which operates 1124 grocery stores nationwide. Many with household names like Acme Markets, Shaw's, Albertson's, Jewel, Osco & Cub Foods. 171 different pension plans underfunded by roughly 6 billion. 60% Union Labor, often at rates that are nearly 3 times as high at other supermarkets. Factor in the growth of Wal-Mart into groceries and you have a big problem. Even given all of the above Supervalu's biggest problem was and is DEBT. They took on to much debt in order to purchase a huge chunk of Albertson's just before the economy tanked. They recently put themselves up for sale and guess what? No One wants them. At least not the entire business.

Another 40,000 jobs at risk due to the failed policies of Obama the Debt Monger.

 

[700UW]

Leadership starts at the top, how can you ask the rank and file employees to give up their pensions, and take a 25-37% paycut while getting raises?

 

[SparrowHawk]

Leadership starts at the top, how can you ask the rank and file employees to give up their pensions, and take a 25-37% paycut while getting raises?

Those who risk the capital get to reap the lion's share of the reward. That's why they call it Capitalism.

 

[700UW]

They didnt risk a thing, they are the executives who killed the company. The hedge funds provided the money, not the CEO and executives.

Rayburn was hired as a restructuring expert only after Hostess filed for bankruptcy -- and became CEO nine days later, after Brian Driscoll quit suddenly and without explanation.

Show me where he put his own money in.

 

[SparrowHawk]

They didnt risk a thing, they are the executives who killed the company. The hedge funds provided the money, not the CEO and executives.

Rayburn was hired as a restructuring expert only after Hostess filed for bankruptcy -- and became CEO nine days later, after Brian Driscoll quit suddenly and without explanation.

Show me where he put his own money in.

Easy! While he didn't write a check to "buy in" he did place his reputation as a turn around guy at risk. Now he is a failed turnaround guy whose reputation is damaged.. He may have failed so badly as to never find another turnaround project. This could cost him MILLIONS. So don't tell me he had no skin in the game.

 

[737823]

http://thinkprogress...tesss-downfall/



Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000.
Gary Wandschneider, EVP, $500,000 to $900,000.
John Stewart, EVP, $400,000 to $700,000.
David Loeser, EVP, $375,000 to $656,256.
Kent Magill, EVP, $375,000 to $656,256.
Richard Seban, EVP, $375,000 to $656,256.
John Akeson, SVP, $300,000 to $480,000.
Steven Birgfeld, SVP, $240,000 to $360,000.
Martha Ross, SVP, $240,000 to $360,000.
Rob Kissick, SVP, $182,000 to $273,008.

Due to the instability and added challenges of managing a distressed company, managers generally expect and receive higher pay than stable, solvent, and otherwise profitable companies. Don't let the facts get in your way.

Josh