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Thread: How will the union supporters spin the Hostess situation?

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    Senior Member coachmo's Avatar
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    Default How will the union supporters spin the Hostess situation?

    Just curious as to the direction of spin from the union supporters as to the "real" reasons why Hostess asked for permission to file bankruptcy. I'm sure none of the fault or blame should be placed on the unions or their demands!

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    Just one word....unemployed..... due to their greedy leaders.
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    Prolly use code .....
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    they are closing all the plants , no more twinkies 18,500 workers will be out of work.
    Last edited by gmhr1; 11-16-2012 at 08:41 AM.
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    http://en.wikipedia.org/wiki/Hostess_Brands

    Here's a wealth of information.....It seems the company's economic woes began about 8 years ago and have continued to plague them over the years.

    While I think the Union probably played a part in the decision to file bankruptcy yesterday (for the second time in less than a decade), I have to ask why the CEO, who was at the helm when things went south was sent on his way with nearly $3 million in compensation and the executives that remained were given salary increases of up to 80%. It seems a little irresponsible when the company is in such poor shape.

    I know Unions are unpopular with most of the people posting here, but it seems to me that there is a lot more to this situation than workers striking to hold onto benefits that were negotiated for many years ago.-Paul
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    Senior Member zeus3925's Avatar
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    Quote Originally Posted by paul young View Post
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    I know Unions are unpopular with most of the people posting here, but it seems to me that there is a lot more to this situation than workers striking to hold onto benefits that were negotiated for many years ago.-Paul
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    Senior Member jacduck's Avatar
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    The real question here is how can ANY company continue to pay retired or laid off workers 80 + % or their paycheck indefinitely and still survive long term. Auto companies should be proof of the pudding. US auto companies could not compete with foreign owned manufacturers on cost or quality. Look at the compensation packages of southern "foreign" plants vs OH or MI or other union midwest plants. The "foreign" companies deal more astutely with the unions right from the get go. This works for/against any manufacturer. Then check out the sweetheart deal union medical plans got in O care. The old days of union corruption is not behind us it simply put on expensive suits and became political instead of using ballbats for persuasion.
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    Quote Originally Posted by jacduck View Post
    The real question here is how can ANY company continue to pay retired or laid off workers 80 + % or their paycheck indefinitely and still survive long term. Auto companies should be proof of the pudding. US auto companies could not compete with foreign owned manufacturers on cost or quality. Look at the compensation packages of southern "foreign" plants vs OH or MI or other union midwest plants. The "foreign" companies deal more astutely with the unions right from the get go. This works for/against any manufacturer. Then check out the sweetheart deal union medical plans got in O care. The old days of union corruption is not behind us it simply put on expensive suits and became political instead of using ballbats for persuasion.
    Could you please provide a source that shows Hostess employees get 80% of their pay as a pension for the rest of their life? I haven't been able to find that anywhere. For the delivery drivers (Teamsters) The maximum rate is $33/month x years of service. There are worker classifications which are calculated at $17/month x years of service. In order to be vested in the pension plan, workers need to have 10 years of service.

    This is what I was able to find.

    Further, it would seem that the the pension fund was well funded as the company emerged from the first bankruptcy (2009).

    Miscellaneous Fund Statistics as of 09/30/2009 Active Members 25,564
    Pensioners & Beneficiaries 30,901
    Fund Assets (9/30/09) $2.6 billion
    Annual Pension Payments $444 million
    Annual Contributions $224 million
    Last edited by paul young; 11-16-2012 at 09:05 AM. Reason: accuracy
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    Quote Originally Posted by paul young View Post
    http://en.wikipedia.org/wiki/Hostess_Brands

    Here's a wealth of information.....It seems the company's economic woes began about 8 years ago and have continued to plague them over the years.

    While I think the Union probably played a part in the decision to file bankruptcy yesterday (for the second time in less than a decade), I have to ask why the CEO, who was at the helm when things went south was sent on his way with nearly $3 million in compensation and the executives that remained were given salary increases of up to 80%. It seems a little irresponsible when the company is in such poor shape.

    I know Unions are unpopular with most of the people posting here, but it seems to me that there is a lot more to this situation than workers striking to hold onto benefits that were negotiated for many years ago.-Paul
    Paul, I too have a real issue with the compensation packages paid executives, whether with a successful company or one that apparently is being managed to it's demise . The food industry is highly competitive - Hostess has brand recognition big time, but dietary habits change, who knows the real truth. Might want to look at the sales force .

    The machinery necessary to do the packaging alone is quite a sight - it is also something created by design engineers for the equipment manufacturers who are in my mind the uinderpaid folks - they made it all possible.
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    Senior Member Buzz's Avatar
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    Quote Originally Posted by Marvin S View Post
    Paul, I too have a real issue with the compensation packages paid executives, whether with a successful company or one that apparently is being managed to it's demise . The food industry is highly competitive - Hostess has brand recognition big time, but dietary habits change, who knows the real truth. Might want to look at the sales force .

    The machinery necessary to do the packaging alone is quite a sight - it is also something created by design engineers for the equipment manufacturers who are in my mind the uinderpaid folks - they made it all possible.

    Something we can agree on. The thing I really liked about working at Siemens was that they put their good engineers into senior positions and pay them like top managers. Their philosophy is, why should a GOOD engineer feel the need to go and be a POOR manager in order to draw a top salary?
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