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View Diary: Private equity-owned Hostess blames striking workers as it liquidates (263 comments)

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  •  The 8% was for YEAR ONE (36+ / 0-)

    *The total concessions asked for totalled between 27 and 32% of combined wages and benefits over 5 years.

    In September, 112 of 115 Bakery Union locals, representing 6,600 Hostess workers, rejected a contract proposal that included wage and benefits cuts totaling 27 percent to 32 percent, including immediate 8 percent wage cuts.
    *They just TRIPLED the CEO's salary even though they have stopped making mandated pension contributions over the last 15 months as they planned to enter bankruptcy court for the second time in a decade.

    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.

    Over the past 15 months, Hostess workers have seen the company unilaterally end contractually-obligated payments to their pension plan. Despite saving more than $160 million with this action, the company continues to fall deeper and deeper into debt.  A mountain of debt and gross mismanagement by a string of failed CEO's with no true experience in the wholesale baking business have left this company unable to compete or survive.

    Read more here:

    *A story in the Toledo Blade says the average worker's salary was 12-15 dollars an hour.
    Mr. LaBuda said the average employee at the Northwood plant makes $12 to $15 an hour.
    These workers were fighting to merely tread water and to earn a barely living wage. At some point as they watched their overlords award themselves huge pay increases while their own lives eroded, they probably thought that the crumbs left were barely worth fighting to keep.

    My sympathy is completely with the workers.

    If you read a lot of the stories, my impression is that the ownerhip is of the overpaid consultant/ liquidater/equity- stripper type whose very last concern is maintaining a working company. I bet that they are thrilled that they can close down plants and sell off the assets and the brands and blame it on the "greedy" bakers union.

    “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR

    by Phoebe Loosinhouse on Fri Nov 16, 2012 at 08:01:29 AM PST

    [ Parent ]

    •  how in good conscience can you propose (1+ / 0-)
      Recommended by:

      that bullshit 'deal' while giving your cronies raises?  It is honest to god mind-bending.  Like Ed says, "when does the greed stop?  With these guys, never."

      "Okay, fine...fer sure, fer sure"

      by tinfoilhat on Fri Nov 16, 2012 at 11:49:35 AM PST

      [ Parent ]

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