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OK, now this is ridiculous and it's why this country is falling apart. Rewarding bad behavior. Had the executives done what they should've been doing, ie running the company effectively and efficiently, it wouldn't be shutting down. So why do they deserve a bonus? They should be under contracts. That should be enough to keep them there for the wrap up. Not to mention a sense of decency and morals for what they failed to do. Of course they will end up in another job, making as much if not more and most of the employees...well who knows.
Love it..., one Unions greed killed the other Unions all together..., ya gotta love it. Still enormously stupid that management gets rewarded and is even allowed to stay on. But this is a comedy of errors all the way around, the management and the Unions both deserve to be labeled idiots on this one, they both managed to drag an iconic company into the ground. When will enough be enough. Labor will never learn that by driving up wages the price of the product goes up also, essentially snuffing out the wage increase and making others pay more for the product. Pretty soon labor will make $500.00 an hour but the package of twinkies will cost $100.00.
So the CEO triples his salary while in the process of declaring bankruptcy and now were told 19 executives will be getting over a million dollars and bonuses above their salary to liquidate the company. How stupid do you have to be to believe that it was the unions fault when this company is being driven by a class of morally bankrupt leaders with unlimited aspirations of greed?
So let me get this straight...There is no money to continue to keep the business going as usual, but there is money that needs to be paid out in bonuses. Any remaining doubt that this company was being run poorly has no been erased. I thought bonuses were for doing well and turing a profit. Hostess is in bankruptcy court, how can they even think of paying bonuses right now?
HAVE THE Union buy the entire company, and then double the pay of union workers? cmon union hacks, isn't that a good idea?
Maybe Hostess would have had money to upgrade equipment if it wasn't spend 100 Million a year on legacy pension and healthcare benefits for Union retirees? Maybe they would have had money to invest if they didn't agree to ridiculous work rules like no bread and sweets on the same truck delivered to stores? The Union drove this company into the ground, plain and simple. Whoever buys it will be very smart to ship all these 'bakery' jobs south of the border and hire a non-union driver workforce.
The union voluntarily aggreed to $100 million in cuts pursuant to Hostess' previous bankruptcy proceeding. Management failed to innovate, streamline and offer new products in a very competitive market sector while continuing to give themselves huge paychecks and bonuses. Taking more cuts by the union would not have saved Hostess, it just would have pushed the inevitable outcome off for another year or so while pulling down wages throughout the industry. Class warfare at its finest, pitting one union against the other. This is killing our economy, and is unsustainable. Eventually the investors will feel the pain too, it is inexcapable.
Of the 100+ companies how many of them are going to be rushing to deal with a radical union and rehire the workers? About zero. What's most likely to happen is some large company will buy the product lines and they'll be absorbed into it and that'll be the end of Hostess. So all the union will have to show for its work rules and wage demand "victories" is a bunch of empty buildings around which they can picket and brag to one another that "Boy, we sure showed them!" while they're trying to figure out the logistics of living in their cars and feeding their families on an unemployment check. Of course, in the end they'll blame it all on the investors and executives for not pouring more money into a company that was losing hundreds of millions a year.
They are NOT buying the company; just the brand names. Hostess is owned by an equity company (like Bain) and they are just doing bankruptcy to get the bonuses and get out of their responsibility for the pensions(which they transfer to the taxpayers.) Who said the Federal government was a sugar daddy to these companies! Beware of a corporate raider when they purchase your company! They're only buying it to get their bonuses and will close it down.
The management team increased the value of the assets of the company by shedding the unions. The new owner will continue making the products, but not have to deal with the unions.
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