So a lot has been written about the demise of Hostess, manufacturer of such beloved artery-clogging treats as Ho-Ho's, Ding-Dongs, and Twinkies, and how the unions are responsible for driving yet another company into the ground.
As reported, the union that represented striking workers was fighting against a 7% wage decrease, along with the usual pension and healthcare benefit cuts. Hostess was in the middle of it's second bankruptcy in less than eight years, and management had threatened to liquidate the company and layoff all workers if concessions were not accepted.
Two bankruptcy filings in less than eight years, huh (2004 and again in 2009)? Doesn't sound like management was doing such a great job running things, does it? During labor negotiations, as workers were being asked to take wage and benefits cuts, management was giving itself raises that have been reported to be as high as 80%, although Donna Brazile said on ABC's This Week with George Stephanopoulis yesterday that number was as high as 300%. Last but not least, Hostess asked a bankruptcy judge to approve $1.79 Million in incentive bonus pay for management.
Incentive pay for a management team that not only over saw two bankruptcy filings in less than eight years, but the eventual demise of an 82-year old company with 18,000 workers on the payroll? Wow, what a set of balls.
Still wanna blame the union?
No comments:
Post a Comment