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Hostess Blames Union for Bankruptcy After Tripling CEO's Pay

Business  (tags: Annie Ross-Strasser, Caterpillar, Citigroup, Hostess Brands, Inc., Bakers' Union, CEO pay triples )

- 2041 days ago -
"While the company was filing for bankruptcy, for the second time, earlier this year, it actually tripled its CEO's pay, and increased other executives' compensation by as much as 80 percent."

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RR Sutton (7)
Sunday November 18, 2012, 7:59 pm
Unions had no reason to trust Hostess after making concessions the last time Hostess filed for bankruptcy. Management had said they would use the realized from those concessions to make the company financially sound, but instead they took the money and made their own financial position even more stable than it already was.

It kinda makes you wonder if the CEO's knew they were going to liquidate the company and decided to get theirs before filing bankruptcy. This is a move that you might expect from someone like Mitt and Bain Capital.

Judy C (97)
Sunday November 18, 2012, 11:18 pm
You're right, RR. This is definitely the way Romney operated at Bain, taking all they could take away from workers before lining their pockets, and giving them the axe.

Aurea Aurea Walker (226)
Monday November 19, 2012, 4:41 am
Welcome to the FUCORPORATIONS of America! Slavery is back and instead of vilifying the sociopathic ceo's and their fellow greedy corporate crooks are raking in the dough! Unions are going to HAVE TO COME BACK! I have their back! It would be great if the employees buy the company and send corporate crooks packing!

Judy C (97)
Monday November 19, 2012, 5:05 am
This particular union is the Bakers' Union. My maternal grandfather was among the pioneers of the labor movement in my hometown, and was Business Agent for the Bakers' Union until his retirement. My family did well as a result of unions. It is so disheartening to see the unions being crushed. They are really the only hope there ever has been for a strong, thriving middle class. The Romneys of the world have succeeded in the divide and conquer tactic by badmouthing and propagandizing against the unions. Working people need to get smarter than that, and they need to stand up and stand together. The 99% are too numerous to allow this beatdown to continue. Even Walmart workers, as controlled by the corporation as they have been, are getting fed up, and beginning to resist. I love it!.

TomCat S (128)
Monday November 19, 2012, 7:23 am
What we have here is a textbook example of Vulture Capitalism.

Roger G (154)
Monday November 19, 2012, 11:56 am
noted, thanks !

Robert O (12)
Monday November 19, 2012, 12:19 pm
Of course blame the people and not the greedy few at the top of the ladder.

You're right about that Tom. It sounds just like Vulture Capitalism, something that Mittens perfected into a science.

Rosie Lopez (73)
Monday November 19, 2012, 12:27 pm

Janet R (38)
Monday November 19, 2012, 1:05 pm
What a shameful display of arrogance on the part of the CEO and other top executives. They know precisely what they were doing, stealing from the company and then trying to blame the union. I'm sure the CEO has a golden parachute so the holidays will be just grand for him while the workers have a lousy holiday.

Roseann d (178)
Monday November 19, 2012, 1:19 pm
Now the Hostess with the Mostess is the corrupt CEO...and no doubt a lousy Hostess as I'm sure every kind of GMO on the planet is in the Immortal twinkie.

Roseann d (178)
Monday November 19, 2012, 1:22 pm
Bankruptcy...guess who gets to pick up the tab for THAT....That would be the American Taxpayer....Hmmm, they sure are concerned about the deficit, the fiscal cliff, and job creation, eh? Ripping off their workers and sticking it to the American taxpayer.

Mary Alexander (23)
Monday November 19, 2012, 2:07 pm
This is Vulture Capitalism and I have to agree it sickening!!!!

Lois Jordan (63)
Monday November 19, 2012, 2:08 pm
Where do these CEO's figure they have the right to bleed a company of its profits, then tell workers they have to take pay & benefit cuts or lose their jobs? Are shareholders not informed of these particulars....or, maybe they have no say? The pensions & retirement funds are invested in Wall St. and have lost huge amounts of money when the market dropped severely in the past 10 yrs. as well. Workers are the biggest losers in this new "Trickle-Up" economy. The media has made an obvious and tenacious effort to slam unions continuously, presenting a picture to America that they're greedy and lazy--while the real greedy, lazy people are the CEO's. I'm beyond disgust on this matter--it needs to be addressed with regulations and new laws protecting workers.

. (0)
Monday November 19, 2012, 5:05 pm
I'm not a fan of unions perse but the union in this case was prepared to do what it takes to abet the company's success. How about the upper ten percent who received all this money for mismanaging it in the first place? If that sound familiar it was the same story with AIG after receiving the TARP money. Their former CEO received a huge settlement. Has AIG ever repaid the TARP fund? It is after all supposedly the "peoples'" money. I never liked their products anyway.

reft h (66)
Monday November 19, 2012, 11:37 pm
CEO needs a math lesson

Michael M (5)
Tuesday November 20, 2012, 6:06 am
Maybe Hostess should blame poor management abilities from it's executives that allowed this to happen after they tripled executive pay?

Lloyd H (46)
Tuesday November 20, 2012, 6:18 am
And the way that they are setting up the bankruptcy, just like BAIN did on multiple occasions, THE AMERICAN TAX PAYER WILL PAY FOR THE INSURED RETIRERMENT ACCOUNTS OF THE WORKERS.
And all of the profit gained via the running up of the debit of hostess/Wonder Bread, that did nor help the company at all, is completely Tax Free thanks to the fact that income derived from the puchase of debt is another corproate loophole.

Gloria H (88)
Tuesday November 20, 2012, 9:07 am
Hostess CEO- "let them eat cake" ? "At will" jobs suck. No security whatsoever for the worker. Fart and you are fired.

Tuesday November 20, 2012, 7:32 pm
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