‘Hostess Blames Union For Bankruptcy After Tripling CEO’s Pay’
I think my favorite Hostess product is their pies. Lemon and chocolate!
But of course – it’s all the unions fault!
‘Today, Hostess Brands inc. — the company famed for its sickly sweet desert snacks like Twinkies and Sno Balls — announced they’d be shuttering after more than eighty years of production’.
‘But while headlines have been quick to blame unions for the downfall of the company there’s actually more to the story’:
‘While the company was filing for bankruptcy, for the second time, earlier this year, it actually tripled its CEO’s pay, and increased other executives’ compensation by as much as 80 percent’.
Dusting off my very best Captian Kack Sparrow – WHAT!?!
‘At the time, creditors warned that the decision signaled an attempt to “sidestep” bankruptcy rules, potentially as a means for trying to keep the executive at a failing company’.
‘The Confectionery, Tobacco Workers & Grain Millers International Union pointed this out in their written reaction to the news that the business is closing’:
‘BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises’.
‘One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256’.
From : http://thinkprogress.org/economy/2012/11/16/1203151/why-unions-dont-shoulder-the-blame-for-hostesss-downfall/?mobile=nc