Hostess Continues Pattern Of Misinformation

Posted in the Denver Forum

“The (R)ich Party Lies!”

Since: Jan 10

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#1 Nov 17, 2012
It wasn't the Unions that put an end to the Twinkie. It was bad business decisions. Don't worry, the CEO was given a 300% raise for making those bad decisions.

KENSINGTON, Md., Nov. 13, 2012 --/PRNewswire-USNewswire/-- In a desperate attempt to break the solidarity and resolve of striking BCTGM members across the country, Hostess Brands is falsely claiming that its decision to close three of its bakeries -- St. Louis, Cincinnati and Seattle -- is the result of the nationwide strike against the company by BCTGM members.

In fact, according to the company's 1113 filing with the bankruptcy court earlier this year as well as its last/best/final and non-negotiable proposal to its BCTGM-represented workers, the company was planning to close at least nine bakeries as part of its reorganization plan, although the company refused to disclose which bakeries it intended to close. This is in addition to the three bakeries that were to be closed as a result of the company's planned sale of its Merita division.

Moreover, St. Louis Mayor Francis Slay was quoted in a November 13 KMOX-CBS St. Louis article stating, "I was told months ago they were planning on closing the site in St. Louis… And there was no indication at that time it had anything to do with the strike the workers were waging."

BCTGM International Union President Frank Hurt stated, "The recent claim by Hostess CEO Greg Rayburn that our strike is the reason for the closure of the three bakeries is simply not true. That statement is a continuation of a disturbing pattern by the company of issuing public statements that are erroneous at best and disingenuous at worst.

Read more here: http://www.sacbee.com/2012/11/13/4983174/host...

“The (R)ich Party Lies!”

Since: Jan 10

Location hidden

#2 Nov 17, 2012
"Our members rejected the company's outrageous proposal by 92 percent in September. Rejection came from every corner of the country. They were being asked to vote on a proposal with massive concessions, knowing that their plant could very well be one of those to be closed.

"Our members are on strike because they have had enough. They are not willing to take draconian wage and benefit cuts on top of the significant concessions they made in 2004 and give up their pension so that the Wall Street vulture capitalists in control of this company can walk away with millions of dollars."

Over the past eight years since the first Hostess bankruptcy, BCTGM members have watched as money from previous concessions that was supposed to go towards capital investment, product development, plant improvement and new equipment, was squandered in executive bonuses, payouts to Wall Street investors and payments to high-priced attorneys and consultants.

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.

Over the past 15 months, Hostess workers have seen the company unilaterally end contractually-obligated payments to their pension plan. Despite saving more than $160 million with this action, the company continues to fall deeper and deeper into debt. A mountain of debt and gross mismanagement by a string of failed CEO's with no true experience in the wholesale baking business have left this company unable to compete or survive.

Read more here: http://www.sacbee.com/2012/11/13/4983174/host...

“The (R)ich Party Lies!”

Since: Jan 10

Location hidden

#3 Nov 17, 2012
I wonder why the right wingers are complaining about Capitalism? Someone will buy the bakeries and open them back up and make you a twinkie again. That is how capitalism works, only the strong survive.

So why are you guys against Capitalism now? It had nothing to do with the Unions, it was the Hostess Management's fault, deal with it.

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