Although unions are utterly outdated and serve no purpose but to enrich themselves at the expense of the membership, you know that your union bosses are idiots when they ignore a call from the Teamsters.
This company was owned by a equity capital group and was around $900 million in debt. That debt was a killer, and it was piled onto Hostess by the equity group. That's what equity groups do. They themselves never lose, whether the victim company is successful or a failure.
The union decided they did not want to work for the compensation being offered. The owners decided to close and sell the assets. Too bad we don't have a national right to work law.
Great job, too, CEO Greg Rayburn. Takes a classic, iconic, American brand and runs it into the ground. Interesting that there is no mention in this article about any possible poor management. This seems to be what the pro-pro-pro-business right-wingers, Chamber of Commerce types want everyone to believe -- if a business succeeds, it is because of the highly-compensated, low-taxed, brilliant, hard-working CEO. If it fails, it is someone else's (gov't, union, etc) fault.
Lots of union bashing today over this, with very little attention paid to the fact that the CEO received a 300% pay raise with the company IN BANKRUPTCY. It's a true shame that 18,000 people will be out of work because of the company's inability to remain competitive, but it is wholly ridiculous to lay all that at the feet of workers who felt it was wrong to be forced into a substantial wage and benefit cut while the company's management was systematically liquidating assets and giving themselves raises.
The real problem was the equity capital group that pile on debt. Around $900 million. Without that debt the company could have survived.
Bankruptcy or liquidation is not a particular concern for equity groups because they never lose money. In effect, they got Hostess for free, and likely charged heavy "management fees."
Comments
The thugs take down another company. Happy Holidays to those who just lost their jobs due to thuggery... Get in line quick for your Obamaphone!
Although unions are utterly outdated and serve no purpose but to enrich themselves at the expense of the membership, you know that your union bosses are idiots when they ignore a call from the Teamsters.
This company was owned by a equity capital group and was around $900 million in debt. That debt was a killer, and it was piled onto Hostess by the equity group. That's what equity groups do. They themselves never lose, whether the victim company is successful or a failure.
This comment has been removed.
The union decided they did not want to work for the compensation being offered. The owners decided to close and sell the assets. Too bad we don't have a national right to work law.
18,00 jobs will be lost and no telling how many suppliers affected and the national media treat it like a joke. And they say Romney is cold hearted.
http://newsbusters.org/blogs/scott-whitlock/2012/11/16/twinkie-party-loss-18000-hostess-jobs-all-big-joke-abc-news
Another company will grow (and hire new workers) to fill the void.
good job, union
Great job, too, CEO Greg Rayburn. Takes a classic, iconic, American brand and runs it into the ground. Interesting that there is no mention in this article about any possible poor management. This seems to be what the pro-pro-pro-business right-wingers, Chamber of Commerce types want everyone to believe -- if a business succeeds, it is because of the highly-compensated, low-taxed, brilliant, hard-working CEO. If it fails, it is someone else's (gov't, union, etc) fault.
The union emplyoees were told the company would be liquidated if they walked off the job... Who else can you blame???
Lots of union bashing today over this, with very little attention paid to the fact that the CEO received a 300% pay raise with the company IN BANKRUPTCY. It's a true shame that 18,000 people will be out of work because of the company's inability to remain competitive, but it is wholly ridiculous to lay all that at the feet of workers who felt it was wrong to be forced into a substantial wage and benefit cut while the company's management was systematically liquidating assets and giving themselves raises.
The real problem was the equity capital group that pile on debt. Around $900 million. Without that debt the company could have survived.
Bankruptcy or liquidation is not a particular concern for equity groups because they never lose money. In effect, they got Hostess for free, and likely charged heavy "management fees."
Who cares about the Twinkies?
It's Wonder bread that's a serious loss to me. Wonder stone-ground whole wheat bread is the best. I've tried several others, but none are as good.