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Thread: Twinkies maker Hostess going out of business

  1. #71
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    Re: Twinkies maker Hostess going out of business

    Vulture capitalists took over Hostess and borrowed 450 million against Hostess - not against the hedge funds who owned Hostess. Some of the plants had production machinery that was built in the 1920's. We might assume that investment in equipment, long before now, might have increased efficiency and profit. The hedge fund owners then asked the union to kick in 100 million. They did. Mismanagement continued, Hostess continued to dive. The hedge fund held owners then asked for more concessions from the union, which included salary reductions and loss of retirement benefits. Management including the CEO awarded themselves huge salary increases. There is no record how much the hedge fund owners took out of the company compared to how much they put in. It is reported that they covered their investment and made money, but not as much as they had hoped as they sucked the company dry and milked the workers for everything they could.










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    Re: Twinkies maker Hostess going out of business

    [QUOTE=rathi;1061156981]The competitors of Hostess also have employees that are part of the bakers union and yet they are still afloat. Its clear the management at hostess is incompetent, especially since they already went bankrupt back in 2004. QUOTE] There is a bigger management mismanagement story here. I know someone who worked there before 2004 who saw some very bad stuff going on with the Wall street boys. How dumb to think these money people were there to bake Twinkies. In the end, having scraped the assets clean and dumped their pension obligations, I guess all that is left is to screw the employees to the floor before throwing in the towel. Why won't they co-operate. Oh well, it may keep these managers in their houses for a few more years. The employees there must truly be inspired to work for such great leaders.

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    Re: Twinkies maker Hostess going out of business

    Ohhh of course the typical "its the union's fault" card right?
    Typical...

    Anyways something to think about:


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    Re: Twinkies maker Hostess going out of business

    Quote Originally Posted by Dwight View Post
    Or. An example of management screwing up so badly that the company could not afford to pay wages that people will accept rather than no job.

    Or. An example of brands losing some luster because of shifting market preferences (concerns over nutritional value).

    Or, to put the above all together: Ownership insistence of some set profit margin that was not in line with market realities of operating expenses and product demand.

    So now it all get ripped down into pieces and becomes fertilizer for, hopefully, more competent management with a more market appropriate vision. *shrug*
    Although this is usually the result of promoting no-talent brown-noses who are willing to humiliate themselves in indentured-servitude education, Hostess does make the highest-quality products in its field. What I've noticed instead is that, especially in immigrant-owned convenience stores, the managers replace the good stuff with off-brand junk. I suspect these are concocted by slave-wage companies that can offer a bigger profit margin to the stores.
    Compounding this is the fact that the customers themselves are subject to low-wage tyranny and can no longer afford quality products, which were able to compete in America before the Capitaliban seized ownership of our economy.
    On the outside, trickling down on the insiders.
    We won't live free until the 1% live in fear.
    Hey, richboys! Imagine the boot of democracy stomping on your faces, forever.

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    Re: Twinkies maker Hostess going out of business

    Quote Originally Posted by CalGun View Post
    Common sense, lost by far too many in unions. Not all just too many.

    At this I can't help but think it'd be cool if Bain Capital swooped in and saved the company and jobs. I'd say they could put in for a union bail out and maybe get a Michelle Obama sponsorship
    If the Capitaliban own a man's work, they own the man. If you're not a union man, you're not a man. You're just a boytoy of the rich.
    On the outside, trickling down on the insiders.
    We won't live free until the 1% live in fear.
    Hey, richboys! Imagine the boot of democracy stomping on your faces, forever.

  6. #76
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    Re: Twinkies maker Hostess going out of business

    Quote Originally Posted by winston53660 View Post
    Lest forget those employees paid into the system
    They didn't pay that much into the system.

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    Re: Twinkies maker Hostess going out of business

    Quote Originally Posted by joko104 View Post
    They didn't pay that much into the system.
    The taxes were taken out of their pay checks.

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    Re: Twinkies maker Hostess going out of business

    Quote Originally Posted by Risky Thicket View Post
    Vulture capitalists took over Hostess and borrowed 450 million against Hostess - not against the hedge funds who owned Hostess. Some of the plants had production machinery that was built in the 1920's. We might assume that investment in equipment, long before now, might have increased efficiency and profit. The hedge fund owners then asked the union to kick in 100 million. They did. Mismanagement continued, Hostess continued to dive. The hedge fund held owners then asked for more concessions from the union, which included salary reductions and loss of retirement benefits. Management including the CEO awarded themselves huge salary increases. There is no record how much the hedge fund owners took out of the company compared to how much they put in. It is reported that they covered their investment and made money, but not as much as they had hoped as they sucked the company dry and milked the workers for everything they could.

    "Milked the workers for everything they could."

    What does that mean other than a slogan?

    Offer ANY $18 an hour job around here and people would line up for 300 yards.

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    Re: Twinkies maker Hostess going out of business

    Quote Originally Posted by winston53660 View Post
    The taxes were taken out of their pay checks.
    I would guess most got a small tax return at the end of the year and paid very little in income taxes - certainly not $20,000 a years.

    As for screwing the workers, Hostess management COULD NOT formally close down, but instead could let the strike keep them closed - and striking employees would get NO unemployment benefits.

    Formally going out of business makes employees eligible for unemployment. The Board of Directors didn't have to do it this way. They could have let the employees wanting to strike hang out to dry.

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    Re: Twinkies maker Hostess going out of business

    Quote Originally Posted by joko104 View Post
    I would guess most got a small tax return at the end of the year and paid very little in income taxes - certainly not $20,000 a year
    So they still paid SS taxes and unemployment.

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