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Union pension contributions were 100 million a year.....really on $.99 Twinkies, that is a lot of Twinkes just to pay the union costs. Union wouldn't budge until the end but by then it was bankruptcy/liquidation. Now 18,000 workers are out of work, both union and non-union. Maybe Obama will swoop in and save the unions again?
Me too...everyone is so quick to say it was the Union but no one seems to have commented on the fact that management was getting their pay raises. I think it was perfectly reasonable for the rank and file to want their wages to not be cut by 8% and their cost if benefits to increase by 20% while the managers were getting raises....
It was wrong to give management raises, but it is hardly the reason the company is broke. The teamsters settled, it was the bakery workers that did not. Legacy costs closed this company.
Union pension contributions were 100 million a year.....really on $.99 Twinkies, that is a lot of Twinkes just to pay the union costs. Union wouldn't budge until the end but by then it was bankruptcy/liquidation. Now 18,000 workers are out of work, both union and non-union. Maybe Obama will swoop in and save the unions again?
Just to be fair, the upper management was grossly overpaid as well but no where near that 100mm number (ANNUALLY!).
I've never understood why working stiffs (99% of the posters on this forum) root against the workers. This company is closing down and selling off its brands and enriching upper management giving them the spoils of the sale while the working folks lose out completely.
In America I notice a trend - no regular folks want anything good to happen to their fellow Americans. No one wants to give someone else a good deal. I've actually heard people tell me they would rather throw the item they are selling IN THE TRASH rather than sell it to me for a couple bucks when they are asking some unreasonable sum of money. "If I can't get $XXX I'm just going to throw it away".
Go to Canada, and you find a completely different attitude.
I don't know WTF is up with America these days but it's getting worse and worse and the backstabbing is getting to epic proportions. Some companies can buck the trend with their culture, but the majority almost encourage it, it seems.
The CEO's salary went from $750K to $2.55mil/yr. You think if they had that $1.5mil per year they' still be in business? I am thinking that was a drop in the bucket and had no real bearing on anything.
The CEO's salary went from $750K to $2.55mil/yr. You think if they had that $1.5mil per year they' still be in business? I am thinking that was a drop in the bucket and had no real bearing on anything.
No, that drop in the bucket was probably not going to make a difference...BUT a company that makes a decision like this is likely making other equally bad ones that we did not hear about.
When this makes sense, who knows what other decisions were made that "made sense" to the company.
The union was asking to maintain their workers current rate of pay, after management and CEO saw their pay grow... All this while the company was sinking fast, and doing nothing to remain competitive. What groundbreaking new products did they come up with to recapture lost market share??? They also bought up much of their competition, which obviously turned out to be a big mistake.
FOX news might blame the living wage union workers, but clearly there is more to the story. Just another company that was grossly mismanaged by the higher ups, and using the union boogeyman as their scapegoat. When I screw up at work, at least I have the decency to admit it...
Regardless if the union workers accepted the lower pay and benefits, it just would have meant a slower death for the company. They are toast regardless, and the blame is solely on the shoulders of those who mismanaged the company. Those grunt level union workers just do what they are told, and now they are being told to eat the cost of someone elses mistakes.
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