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Hostess Brands Moves to Wind Down Operations, Sell Assets

Discussion in 'The OT' started by fluffybear, Nov 16, 2012.

  1. Hoosier205

    Hoosier205 New Member

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    Only about 30% of their workforce was union. The union members who went on strike chose to further damage the company and cripple it. They didn't care about the jobs and families of the other 70%. Those employees who belonged to the union that refused to negotiate deserved to lose their jobs. As did the teachers in Chicago earlier this year.
     
  2. runner861

    runner861 Icon

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    http://money.cnn.com/2012/11/21/news/companies/hostess-closing/index.html?hpt=hp_t2

    Hostess wants to get $1.75 million in bonuses approved for executives as part of the liquidation. The Dept. of Justice has filed an opposition, as well as the unions. Hostess says they need to keep the executives to oversee the liquidation. To me, an outsider, it looks like the executives just wanted all along to liquidate the company and make some money for themselves. Since the union has made many concessions along the way, I am not seeing the fault in the union in this case. Of course, I am on the outside looking in, only knowing what I read about the situation.
     
  3. Hoosier205

    Hoosier205 New Member

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    ...the union in question wouldn't even discuss their issues with the company. They just walked.
     
  4. Lord Vader

    Lord Vader Supreme Member

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    I'll oversee the liquidation for half that!
     
  5. AntAltMike

    AntAltMike Hall Of Fame

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    College...
    That reminds me of the politicians and the chairman of charitable institutions who work for nothing or work for a dollar a year. Most wealthy people would be willing to pay hundreds of thousands or even millions of dollars to have those jobs, as they are most valuable to those who are inclined to abuse them for their own benefit.
     
  6. longrider

    longrider Well-Known Member DBSTalk Club

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  7. Hoosier205

    Hoosier205 New Member

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    Good. Let's congratulate the unions on more jobs lost.
     
  8. SayWhat?

    SayWhat? Know Nothing

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    When a business goes belly-up under circumstances like these, the Suits should get nothing at all. Not a dime, including their last year's salary, stocks, etc.

    I don't believe in rewarding failure.
     
  9. dpeters11

    dpeters11 Hall Of Fame

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    If they have stock, let them keep it as a reminder. How valuable is delisted stock?
     
  10. Lord Vader

    Lord Vader Supreme Member

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    Many Americans already do. :lol:
     
  11. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Some are stuck on blindly blaming unions... and I get where that sentiment originates... but how on earth can anyone justify executive bonuses during bankruptcy?

    I'm not a "hate the rich" person... and I understand that executives do make decisions that sometimes warrant bonuses... but you can't argue you earned/deserved a bonus for running a company into the ground.

    Even if you blame the union for sinking the company... the executives in charge still did not earn a bonus.

    That is always tough to wrap my head around... The evil union didn't want another pay cut and wanted to preserve pensions and heath benefits and didn't care about jobs... but those super nice executives needed those millions in bonus for the awesome job they did!

    Really?

    :confused::rolleyes::nono2:
     
  12. scooper

    scooper Hall Of Fame

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    If I was the judge overseeing this -
    Not only would I deny this motion, but I would order that the suits be paid the rate they got for their last full year of operation (before the big salary jumps).

    If they want to liquidate the company, they sure shouldn't be making out like bandits to do so.
     
  13. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    "Running the company into the ground" is an opinion ... those executives may have been "doing everything they could to maximize profits from the brand".

    The last time I checked, Hostess was a for profit business. It was not a charity founded to support 18,000 otherwise unemployed people and their families. If they can help a few thousand people along the way that is great ... but the main thing is the main thing. Their job is to make money, not keep people employed. Yes, it is harsh ... but the promise of a company providing for your needs for the rest of your life isn't reality.

    When the time comes that the company can no longer make money via making and selling the product ... or can make more money by selling the brand than making a product perhaps it is time for the executives to make the most money they can - sell the brand and move on to their next company.

    Are the OWNERS of the company/brand complaining? The owners are the one who compensate their executives. The owners are the ones who decide if they did a good job or not and deserve the bonuses. Not the employees. Not the unions.

    If the unions think they can do a better job of running the company they should buy it. There are employee owned companies, why not a union owned company? Or do they agree with the current management that continuing to own the brands and operate the company isn't worth the investment?
     
  14. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The court could reduce the compensation ... but they could not force those executives to continue to work. The executives could easily say "no thanks" ... and walk away. Then other executives would have to be brought in and perhaps even paid more to manage the end of the business.
     
  15. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    You're missing the point.

    Even if you want to blame the union strike... the executives were still running things and the debts were piling up... so what did they do to earn a big bonus?

    Seriously... what did any executive of a failing company do to earn a bonus?

    You get your salary even for doing a bad job... at least until you get fired. I understand that... but a raise? or a bonus? Presumably you did something as an executive that improved the value of the company to earn a raise or a bonus... Please point to something that shows any executive earned a bonus.

    I'm pretty sure nobody can do that.

    I don't even care if you can lay the failure squarely on the union that was on strike... the executives still didn't earn a bonus or a raise, period.

    Note that I didn't say not to pay the executives... I just said they didn't earn a bonus or a raise for running the company farther in the hole. Even if they did the best that they could, that doesn't earn you a bonus. Sometimes your best isn't good enough.

    Think the coach of the Philadelphia Eagles deserves a raise? By this logic, sure... its the players losing the games... so give the coach a raise! But you wouldn't really think so, right? Even if you don't fire the coach for a losing season, you surely don't give him a raise! Right?
     
  16. klang

    klang Hall Of Fame

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    Perhaps it should be called a bribe instead of a bonus. They are being paid to stick around until the shutdown is complete instead of looking for alternative employment.
     
  17. Cholly

    Cholly Old Guys Rule! DBSTalk Club

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    It's okay for the executives to get bonuses, but not for the bakers' union to refuse to take yet another cut in pay and benefits? Strange.
     
  18. Drucifer

    Drucifer Well-Known Member

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    It seems the removal of venting machines from schools doomed the extended-life pastries industries.
     
  19. Davenlr

    Davenlr Geek til I die

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    I dont know if its national, but everything Hostess makes is available here in a clone from Dolly Madison. I really dont see the industry failing completely, but with the current health craze, I do see several companies making unhealthy products downsizing or closing their doors.
     
  20. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Good point, one I'd not have thought of.

    But those packaged-for-life confections didn't need much fresh air, did they?? :D
     

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