The Bakers Union members have had enough of being blamed for the closing of Hostess Bakeries in the mainstream media. The truth is much more complicated and the media has failed to tell the story. In this film you will hear directly from the Local 218 members in Lenexa, Ks. Be informed before it happens to your family too.
If you or someone you know can't understand why there was a strike at Hostess, watch this film.
When you hear the media narrative about about Hostess and the Bakers Union strike it is impossible to learn the truth. EVERY media outlet leaves out the details the Hedge Funds don't want the public to know. Here are some examples-
1. The Union SELF-FUNDS a large portion of its pension. Each Lenexa, KS worker contributes $4.25 an hour to the pension fund.
2. The 'Company' had collected that money for over a year under the lie that it would eventually be repaid to the pension fund. A total of $50 Million in one year.
3. This debt to the pension was thrown out in bankruptcy court as a debt the 'Company' could not repay. This money has been forever stolen.
4. The 'Company' or 'Hostess' is actually a pair of Hedge Funds, Monarch and Silver Point. It is a privately held business, it is not on the stock market.
5. As a private company the Union cannot view the accounting books for the 'Company'. In court, when the books were opened it became clear the 'Company' was skimming from the pension for a long time. A total of $186 million.
6. This money was stolen by the 'middle man' and never made it to the pension, therefore the Federal insurance plan- Pension Benefit Guarantee Corporation- will not help us. The PBGC is for failing pension funds. It will not cover theft of money that never made it to the pension.
7. Our pension is NOT a part of the secured debt. When you hear that the 'Company' is on the hook for $1 Billion in secured debt remember that does not include the stolen pension money.
8. The secured debt does include the money 'loaned' to the 'Company' by the Hedge Funds. Including the interest on those loans, as high as 15%. The 'Company' IS the hedge funds. In other words they loaned themselves money at a high interest rate and expect everyone to pay for it but themselves.
9. These Hedge Funds never intended to make Hostess profitable. They were always motivated by selling the brand names and infrastructure at the highest value.
10. Bankrupting the company and closing the doors allows them to strip the Unions from the brand names, driving up the resale value of the brand names. They never had to close, it was done as a mechanism to bust the Unions. The added bonus to the Hedge Funds was the ability to blame the strike for the closure.
11. The 'Company' shopped for a bankruptcy judge and found one to their liking. They chose Judge Drain (no pun intended) in New York, despite the facts that the 'Company' is located in Dallas, was previously in Kansas City, and is not on the stock market.
12. The judge helped write the contract with the 'Company' without any Union involvement. The judge granted permission to impose the contract on us before ANY rank and file Union member had seen the contract 'offer'.
When the sale of 'Hostess Brands' is complete the Hedge Funds will pay back the secured debt of approx $1 Billion and pocket anything above that number without paying the pension funds back. Remember that almost half of that debt is loans and interest to THEMSELVES. They will have already profited tens of millions when they 'break even'. In a just society that would never happen.
Most people assume that if you own a business and it goes bankrupt then you don't get to make millions of dollars on the closing. These Hedge Funds and the Congress members they fund have created a legal framework that protects them from ANY risk and leaves the damages at the front door of workers.
It will happen to you too, if you don't pay attention. Do not assume the law is on your side, even though it may have been in years past.