That is the story the Republicans are telling, and they are sticking with it, the truth be damned.
And if you get your daily news updates from the "fair and balanced" Fox News, you will not know the truth of why Hostess is firing the 18,000+ workforce and closing shop.
This is the second time Hostess has looked to bankruptcy protection from creditors. The first time around, the workers (unionized) agreed to concessions by a reduction in pay, as well as a reduction in the work force. But, the problem really lay in the fact that "hedge fund managers" had gotten involved with the company, and Hostess was basically "Bained" by vulture capitalists.
What prompted the unionized employees to tell Hostess to go fuck themselves this time around was that while the company was trying to gut pensions and pay for the workers, the top four Hostess executives had given themselves pay raises of up to 80%!
So, for now, it will be the vulture capitalists (like a Bain Capital, and let us remember how much we learned during the presidential race, about how they work) who will be the only beneficiaries of a sell off of the assets of the company, as they fire the 18,000+ workforce.
Think about that the next time you watch Fox News and listen to them prattle on about how the employees of Hostess were "hosed" by the union, and realize why Fox News watchers are more stupid than the average person who does not watch news at all.
To read all there is to know on this, CNNMoney has a rather lengthy screed, well worth a read, especially if you traditionally get your scoops from Fox News.
UPDATE: 11/17/12 Courtesy Sacramento Bee
In a desperate attempt to break the solidarity and resolve of striking BCTGM members across the country, Hostess Brands is falsely claiming that its decision to close three of its bakeries -- St. Louis, Cincinnati and Seattle -- is the result of the nationwide strike against the company by BCTGM members.
[snip]
Over the past eight years since the first Hostess bankruptcy, BCTGM members have watched as money from previous concessions that was supposed to go towards capital investment, product development, plant improvement and new equipment, was squandered in executive bonuses, payouts to Wall Street investors and payments to high-priced attorneys and consultants.
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.
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