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Hostess Maneuver Deprived Pension

Hatuey

Hatuey

Rule of Two
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Hostess Maneuver Deprived Pension - Yahoo! Finance

Hostess Brands Inc. said it used wages that were supposed to help fund employee pensions for the company's operations as it sank toward bankruptcy.
It isn't clear how many of the Irving, Texas, company's workers were affected by the move or how much money never wound up in their pension plans as promised.


After the company said in August 2011 that it would stop making pension contributions, the foregone wages weren't put toward the pension. Nor were they restored.


The maker of Twinkies, Ho-Hos and Wonder Bread filed for bankruptcy protection in January and shut down last month following a strike by one of the unions representing Hostess workers. A judge is overseeing the sale of company assets.


Gregory Rayburn, Hostess's chief executive officer, said in an interview it is "terrible" that employee wages earmarked for the pension were steered elsewhere by the company.
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I have a feeling that the severance packages of Hostess' executives will be just fine when this is all over.
 
snopes.com: Hostess Executive Raises

The previous CEO and other top level executives did receive a considerable pay "bonuses" even as they filed for bankruptcy and proposed massive cuts for everyone else. Apparently some of the money was never accepted or returned, although how much in unclear. There should be a lawsuit to recover every single cent, in addition to levying maximum punitive damages upon whomever engaged in the skimming, if not criminal charges.

I'd wait for the bankruptcy court to actually rule on dividing up the remaining assets before I'd judge their motivations.
 
Hatuey said:
Hostess Maneuver Deprived Pension - Yahoo! Finance



I have a feeling that the severance packages of Hostess' executives will be just fine when this is all over.
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They ought to get something. They were working for a dollar a year ever since the management changed the year before.

Losing the pension fund is what happens when you insist on a defined benefits retirement and the company goes belly up. Did the union think it was going to be any different this time when they pushed the company over the edge? They sure screwed all the non-union workers in that company but good.

Did union members have a seperate pension?

I'm sure the fat cats in that union leadership are still being paid their big salaries. They are probably deciding which company to bust out next.
 
LowDown said:
I'm sure the fat cats in that union leadership are still being paid their big salaries. They are probably deciding which company to bust out next.
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Big, but not CEO big - $211,000. Of course, that comes with a 6-figure lifetime pension that will also "be just fine when this is all over."
 
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