Hostess is Toast

[Gumbo4x4]

Originally Posted by JoiseyMom

I am thinking there is a good chance some of these products will be bought by other companies. Hostess owned lots of brands, not just junk either. THey made Natures pride breads, and those had good ingredients, I really liked them.

I can see Nabisco or someother company at least buying recipes. I can't see no more Twinkies (I havent eaten them in decades) or Yodels or devil dogs. I see them being made elsewhere.

But the little ppl lose their jobs, and the hedgefund rich guys sell the company by the recipe and walk away even richer.

Certainly someone (or a combination of someones) will have to fill that void. Some Hostess products will resurface, some won't. Some all-new products will surface, some existing products will see an increase in sales. And someone will have to produce these goods. Like the PP who said her husband is on OT now as he works for a competitor. It's the nature of the World. Someone's heartbreak will be to someone else's benefit.

[Princess Dolly]

Originally Posted by dsneprincess

This exactly!! I feel no sympathy for these people that walked out on their jobs. They made their beds, let'em lie in it.

I do feel bad for the rest of us that will miss Hostess products & be forced to take care of a whole bunch more people with economic handouts. I personally don't think they should see a dime, but most will end up better off not working. Sad, what this country has become.

Yes it's sad that the rank and file workers bear all of the burden while the executives live high off the hog. Sad that corporations are so greedy and uncaring.

[castleview]

Let's see: Management givens themselves hefty salaries while asking lowest paid employees to take an 8% cut (their third cut, btw) and no work is being done in the R&D department even though we live in a far more health conscience society, two bankruptcy filings over the last decade…and it's the union's fault? Now the hedge fund owners will liquidate the assets and sell the brands to companies who hire 15 year temp workers. I love this country.

[donaldlovesdaisy]

Originally Posted by Princess Dolly

Yes it's sad that the rank and file workers bear all of the burden while the executives live high off the hog. Sad that corporations are so greedy and uncaring.

This is America we all have the opportunity to be those greedy cooperate executives ! I sometimes wonder if all this hate and rage people have for the wealthy is no more than just plain old jealousy.

[furb & dez]

Twinkies changed at some point in the late 80's/early 90's and I lost interest. Then they changed again and just became absolutely foul.

Originally Posted by rgf207

You're right, 100% reduction. But if they gave in, what's to say that it would not get worse. You (collective you) can't always give in because every time you do, they get more powerful. At what point do you need to stand up for yourself. All companies do is try to reduce, reduce reduce to make higher profits. The more you give in the more they reduce.

Because that's worked so well for Pilots and Stewardessess in our crumbling air travel industry? (re-regulate the air travel industry!!)

Originally Posted by Cannot_Wait_4Disney

And even as the company was crumbling under the weight of too much debt and slagging sales, and even as the unions that the usual suspects are going to blame for all this were making concession after concession, the CEO got a 300% raise and the next top 4 executives received pay increases averaging 80%.

It's really very simple... it's in their contracts/agreements. If you draw up a contract that says "in year X, CEO receives a 300% increase" and attach no riders or stipulations, then guess what... in year X, the CEO will receive a 300% increase, regardless of how the company is performing financially. It's not rocket science.

If it's in the contract it happens. If it didn't, they'd be in a lot more trouble for breaking the contract, and then they would get sued on top of still owing the money.

[castleview]

Originally Posted by donaldlovesdaisy

Really I assuming from this post you have run many successful businesses?

Here's my rules…and I had this conversation once with a small publishing house owner who defended hiring unpaid interns because she couldn't afford an employee. If you can't afford it, you can't have it.

[castleview]

Originally Posted by donaldlovesdaisy

This is America we all have the opportunity to be those greedy cooperate executives ! I sometimes wonder if all this hate and rage people have for the wealthy is no more than just plain old jealousy.

No, that's not the case. There are plenty of business owners who realize they have to treat their employees well in order to sleep at night and run a successful business. I worked for a man who dipped into his own personal savings account to cover salaries when times were hard (and the company did come through).

If you honestly think it's okay for someone to pull in millions as a CEO while the lowest paid employee is paid minimum wage, has temporary or "independent contractor" status, doesn't get any benefits or rights as a worker, then you need to grow a conscience. That IS greed.

[pumpkinmomma]

Originally Posted by Cannot_Wait_4Disney

Hostess demise can be laid at the feet of way too much debt in takeover restructuring, horribly out dated products, and bad management. Seriously, their plan to save the company was
Wait for it.
Wait for it.
BOOM!!!! BANANA FLAVORED TWINKIES!!!!!

And even as the company was crumbling under the weight of too much debt and slagging sales, and even as the unions that the usual suspects are going to blame for all this were making concession after concession, the CEO got a 300% raise and the next top 4 executives received pay increases averaging 80%. If the unions made any mistake it's that they actually thought the other side was bargaining in good faith. They weren't. Even if the union caved in on everything it wouldn't have changed a thing. And at this point, there is no way the workers can even trust that management would have even kept to any contract they agreed to. They've broken them in the past. Liquidation was the plan all along. The strike had nothing to do with it other than management playing CYA by blaming it for the company's demise which was coming anyway.

This. This is the 2nd trip for Hostess into bankruptcy in 10 years. This has been coming for a while and I think the strike was just an excuse. They were a failing business and have been for quite a while.

[tvguy]

Originally Posted by pumpkinmomma

This. This is the 2nd trip for Hostess into bankruptcy in 10 years. This has been coming for a while and I think the strike was just an excuse. They were a failing business and have been for quite a while.

I think this is it.

[Gumbo4x4]

Originally Posted by castleview

Let's see: Management givens themselves hefty salaries while asking lowest paid employees to take an 8% cut (their third cut, btw) and no work is being done in the R&D department even though we live in a far more health conscience society, two bankruptcy filings over the last decade…and it's the union's fault? Now the hedge fund owners will liquidate the assets and sell the brands to companies who hire 15 year temp workers. I love this country.

It's not the union's fault the company was in trouble. It's the union's fault the doors are shut today. Certainly, there were lots of problems with Hostess that may never have been solved. And what happened today may just be the inevitable. But, plain & simple, now was not the right time for a strike. The Teamsters recognized that, but the bakers did not.

[donaldlovesdaisy]

Originally Posted by castleview

No genius, that's not the case. There are plenty of business owners who realize they have to treat their employees well in order to sleep at night and run a successful business. I worked for a man who dipped into his own personal savings account to cover salaries when times were hard (and the company did come through).

If you honestly think it's okay for someone to pull in millions as a CEO while the lowest paid employee is paid minimum wage, has temporary or "independent contractor" status, doesn't get any benefits or rights as a worker, then you need to grow a conscience. That IS greed.

If the lowest paid employee had very little skill or education then why should he be paid more than what they are worth? Oh and your genius remark is rude and condescending and really does not help your argument. Do you always insult people who don't agree with you?

[luvmy3]

Originally Posted by castleview

No genius, that's not the case. There are plenty of business owners who realize they have to treat their employees well in order to sleep at night and run a successful business. I worked for a man who dipped into his own personal savings account to cover salaries when times were hard (and the company did come through).

If you honestly think it's okay for someone to pull in millions as a CEO while the lowest paid employee is paid minimum wage, has temporary or "independent contractor" status, doesn't get any benefits or rights as a worker, then you need to grow a conscience. That IS greed.

That is life in the corporate world, we aren't all equal.

[ilovemk76]

Originally Posted by RadioNate

I feel bad for the workers. The Bakers Union was the only one striking.

I think they could have negated w/out a strike but they were asked to make huge concessions. Staff reduction (30+%) huge pay cut (I've read 8%), benefit reduction, pension freeze. Realistically, if your family depended on your income how many could live with those cuts?

The strike may have sped up the process but Hostess was headed this way anyway.

How is that new reality going to work better?

We have survived two simultaneous layoff, could happen again in the future, paycuts, jobs with not benefits and what is this pension you talk of.

[Thundergod]

God Bless our unions.

They can brag about how they brought hostess to it's knees while they stand in the unemployment line.

[donaldlovesdaisy]

Originally Posted by Thundergod

God Bless our unions.

They can brag about how they brought hostess to it's knees while they stand in the unemployment line.