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Thursday, December 13, 2012
Hostess To Lay Off 18,000 Unionized Workers In Its Liquidation
Twinkie-maker Hostess continues to screw over its workers. The company is in the process of complete liquidation and 18,000 unionized workers are set to lose their jobs. More troubling – they could lose their pensions. According to a report by the Wall Street Journal, Hostess CEO, Gregory Rayburn, admitted that his company essentially stole employee pension money and put it toward CEO and senior executive pay. While this isn't technically illegal, it's another sleazy theft by Hostess executives - who've paid themselves handsomely while running their company into the ground. Just last month, a judge agreed to let Hostess executives suck another $1.8 million out of the bankrupt company to pay bonuses to CEOs. If there's no way to recover the money for the Hostess pension plans for workers, then we the taxpayers- through the Pension Benefit Guaranty Corp. - will have to foot the bill to make sure workers get the retirement money they paid in. Hostess shows us clearly what predatory capitalism is all about: big bucks for the very few rich executives, layoffs and poverty for the workers and their communities.
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13 comments:
What a shame the govt is so controlling that this sweet. Company is folding. No sympathy at all for the union workers. You can't have your cake and eat it too.
Part of the blame goes to the unions too - they could have negotiated a give and take contract with management for near-term concessions in exchange for rewards later - just to keep everyone employed.
Good thing those workers won't take an 8% pay cut. Now they've taken a 100% pay cut and are on their own to manage their retirement. Those who made huge commitments in investments, experience, and resources get a lot less than they would have had the unions mot been so greedy and forced them out of business. Can't blame the owners for maximizing their return - legally.
The folks that think they are getting $1.8 million in bonuses, as well as their regular paycheck would be really surprised if they had me to deal with! They would get nada and I would be trying my hardest to take ALL their assets, wherever they have them hidden, and any homes, boats, stocks, bonds, first child, etc. They would certainly be paying through the nose to pay back every dime that was taken. This should not be legal and anyone that thinks it is has absolutely no morales/ethics. Did they learn under Hitler?
haven't had a twinkie in 20 years, now i want one REAL bad.
I stocked up before the outlet closed up.
3:32-I assume you froze them?
As far as "stole employee pension money", I'd check another source besides Thom Hartmann, the author.
This what happens when you vote for a Communist President!
I worked for hostess and all management,executive's and CEOs did was us the company as an ATM machine. If management woke up in a good mood that was a good reason to give out a round of bonuses! No money was ever put back in to the company to remain competitive. Teamsters are just crooked as the upper management was. But in the end the BLAME falls on the shoulders of the executives and management that run the company. I know this from experience not from what the news said. No one can imagine the things that went on at that places its really unbelievable that it lasted as long as it did.
There was no pay cut possible to save the company the damage was done. If we a had taking a pay cut it would of just been more money for management to steal! Management neglected the market and were losing space in all stores it was just a matter of time before the well run dry!!
3:11
The bonus money that the executives SHOULD get would pay the employees for about 2 days.
The executives were hired to try and save the company, but the hard headed union grunts decided that it's all or nothing.
The unions got nothing.
I used to fall asleep dreaming I was saving union employees from my own demise of unemployment by purchasing their products. Then I realized that it didn't matter because the employees were not interested in anything beyond the well being of their union management and customers only wanted to pay more for things such as Twinkees so Union managers could have a more quality of life such as new cars, better perks and the like. I fee much better now knowing that our union guys are suffering through the the more budget restaurants like I am. I am confident though that our Government officials in Annapolis will take care of me and my striking coworkers to prevent us falling into the lower class society as the private sector workforce survives.
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