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The management staff ahs been asking for cuts in wages and benefits from the workers while the execs get massive increases. Just today the judge is forcing the company to work with the union and is blocking the BK. They need to slash the exec salaries and place the austerity on those that can afford it.
This company is mismanaged and they want to fault the unions ... They forget it's those people that make the products that make the income. The execs do little fort he day- to day... except apparently give them selves raises and bonuses.
The management staff ahs been asking for cuts in wages and benefits from the workers while the execs get massive increases. Just today the judge is forcing the company to work with the union and is blocking the BK. They need to slash the exec salaries and place the austerity on those that can afford it.
This company is mismanaged and they want to fault the unions ... They forget it's those people that make the products that make the income. The execs do little fort he day- to day... except apparently give them selves raises and bonuses.
You make it sound like the union work force owns the company. Sorry they don't and whatever grievances they have real or perceived make little difference, since they don't.
Nobody is owed a job or an income.
The management staff ahs been asking for cuts in wages and benefits from the workers while the execs get massive increases. Just today the judge is forcing the company to work with the union and is blocking the BK. They need to slash the exec salaries and place the austerity on those that can afford it.
This company is mismanaged and they want to fault the unions ... They forget it's those people that make the products that make the income. The execs do little fort he day- to day... except apparently give them selves raises and bonuses.
When a company is in distress and your worker's representatives refuse to compromise, is that really the time to skimp on buying the best strategic leadership you can find?
Finding someone to drive a Hostess truck is as easy as closing your eyes and pointing to someone in an unemployment line. Finding a quality executive is significantly harder.
If they are bought out it will likely be by a compatitor who alrqady has its own employeees. The market for antio baked goods has been i declie for deacdes now. When one looks at the number of private store brands competiting its no wander are filig for second bankrupsy. So far the onyl one seems interewst is a competitors mostly for the brand rights and is not union bakery.
Thanks. If there is any rehiring, I'd hire non-union workers. The union folks can get a taste of being jobless in this economy!
Quote:
Originally Posted by hnsq
According to national statistics for teamster wages and bakers union wages vs non union, teamsters were paid about 26% more than non-union for Hostess's truck drivers, and bakers paid 49% more than the national average for bakers.
I can't see this business making a go of it at this point. I do not think there is a huge demand for twinkies, Ho-Ho's, etc. At least where I am - most people are very health conscious and are not going to put all that sugar (and who knows what else) into their bodies. It's like a mortal sin these days - eating too much sugar.
Not that I want to see people out of work - but it seems like giving a dying person mouth to mouth. It can't really save them.
Now if they could figure out way to make Twinkies high protein and high fiber - then maybe.
When a company is in distress and your worker's representatives refuse to compromise, is that really the time to skimp on buying the best strategic leadership you can find?
Finding someone to drive a Hostess truck is as easy as closing your eyes and pointing to someone in an unemployment line. Finding a quality executive is significantly harder.
You have a lack of facts.
First off these people were already below any "standard" union wage. They had been giving for some years.
Second the Teamsters agreed to the givebacks. One reason is because they had no real threat of job loss and were commissioned based on the goods sold not just salary.
The Baker's have a different set of problems. First off not only was there a salary cut and benefit reduction involved there was a clause allowing the closing and selling of the bakeries that would have reduced Baker employment by a third. The Bakers are also a large union and would have come under great pressure to provide similar givebacks to other employers in no financial difficulty.
According to one union member his salary would have dropped from $48,000 five years ago to about $25,000 with much bigger payment for medical etc. He would be much better on unemployment and finding a new job.
The major problems in the bankruptcy included excessive debt, pensions and union contracts. Note however management has made no significant move in their plan to shed the debt. If they were serious about saving the place as a going concern the first thing you go after is the debt.
I would think it is tied up in fatal levels of debt to be actually successfully run by any other than the venture capitalist that own much of the debt.
Any serious attempt to save Hostess would involve getting rid of all or virtually all of the debt...which would make it a viable company again...2.5 billion in revenue ain't bad.
That is however likely impossible as the debtors continue to control the company.
So the actual process going on is to squeeze maximum revenue from the place even if that leaves a corpse behind.
It would be interesting to put the place up for a zero base auction and see what happens.
If the union really cared, they would buy the business and give it to their union members to stay in business.
See how long they would stay afloat.
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