Will This Be Blamed On Sandy Too?

Tyler Durden's picture

Following yesterday's news that the Hostess mediation with its workers has collapsed, formalized earlier today, we get the next update which will likely make for a less than happy thankgsiving for a whole lot of former workers:

  • HOSTESS CEO SAYS MUST TERMINATE 15,000 EMPLOYEES TODAY

We wonder if this surge in initial claims reported next week will also be attributed to Sandy?

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stinkhammer's picture

if they fire me today; i'm taking my red swingline with me!

slaughterer's picture

Memo

From: Hostess CEO

To: My 15,000 employees

Happy Thanksgiving.  You are all fired.

Management can collect bonus after we sell the last Twinkies machine.

(Cue: Market surge.  CNBC spin.  And Krugman OpEd seeing this as positive.)

 

 

MillionDollarBonus_'s picture

If the executives of this company had taken a pay cut, the company would have been saved. I've done the math, and I calculate that executive pay was 30% of revenue. The unions had no responsibility at all. Only rich people have personal responsibility, not normal people like me.

EscapeKey's picture

1/10.

I'm sorry, this is simply terrible trolling.

A simple google search would have told you that Hostess executive salaries were cut to $1 back in April.

http://www.bloomberg.com/video/90283695-big-number-hostess-slashes-execu...

You could at the very least have said "compensation package".

MillionDollarBonus_'s picture

Ok smart Alec ... so you support rich successful executive bigshots over average Joe unions just trying to get a fair unconditional pension contribution? Trickle down economics doesn't work moron. 

camaro68ss's picture

MDB, your brain is to small to understand free market Principles and wage price points set by those free markets.

eatthebanksters's picture

Folks, no one is as bent as MDB appears...he can't be real in his opines....it's all a big piss at the liberal estatblishment.  If he is for real then he must be in a different country and a relic of some communist regime where he got extra bacon as a kid for blowing the local party boss.

Badabing's picture

Bullish for Drakes I like funny bones

slaughterer's picture

This is a fake MDB.  The name has a "_" after it.

Sauk Leader's picture

Good eye, it looks like Max Fisher stole MDB's identity.

Nobody For President's picture

Agreed. The real MDB is much more subtle, and reels in the suckers by the bushel - one of the best trolls around and up to ZH standards. This fake is using a sledgehammer, instead of the real MDB's tackhammer. Or maybe it's the same dude trying different styles, in which case - go back to the tackhammer, much more entertaining.

fuu's picture

Both versions registered 1 year 19 weeks ago. The one with _ in front is only 19 weeks old.

A Nanny Moose's picture

Rome burns. ZH is infested by MDB groupies. You can't make this shit up.

EscapeKey's picture

0/10.

A good troll does not resort to name-calling this early in the debate.

bunnyswanson's picture

What the fuck are you talking about?  CEO compensation includes perks that by far make up for this $1.00 salary.  The multimillionaires now running monopolized industry have drained profits and cornered their markets during mergers and acquisitions (Bain Capital). 

Highest paid CEOs:

http://blogs-images.forbes.com/halahtouryalai/files/2012/06/top-and-bottom.gif

Joe Davola's picture

The election's over, give up Bain already.  Read Tyler's article from a few days ago which adressed the multimillionaire D's who run the M&A firm involved in Hostess - as well as the looking 'out for the little guy' Dick Gephart's skim from the deals.

Metalredneck's picture

When can I make a Hitler reference?  Before I post cat memes?

MeelionDollerBogus's picture

You have to choose? What kind of troll are you?

Hitler Kitten Speaketh

akak's picture

You're really off your game today, MDB (not that I appreciate your usual shtick anyway).

Let The Wurlitzer Play's picture

Trickle down economics doesnt work well for lazy people but it is much better than "trickle down socialism".

 

AldousHuxley's picture

trickle down economics is socialism you idiot.

 

socialism for the bankers as they get the first dips into fed money.

first dips = inside trading

 

 

ZerOhead's picture

http://en.wikipedia.org/wiki/Trickle-down_economics

Trickle down economics provides a veritable golden shower to the wage slaves below...

goldfish1's picture

"Today's wage slave is not much different than yesterday's. They are woken to go to work, they punch in and raise capital for their boss, they punch out and spend the little bit of money they earned, go to sleep to rest for the next day, and repeat until they retire or die. They are bound to their bosses by credit card debt, mortgages, and family welfare. In today's tough economic times, wage slaves are bound more than ever. They know if they quit or demand more from their employers they will be easily replaced."

MeelionDollerBogus's picture

The trick is to have no debt, no mortgage & to plow all your extra money into safe investments like gold, silver & land you control completely - and emigrate if you must to do all this - all before having children. Then you can quit when you want, learn how to boss your bosses in a polite but business-sensible manner & keep established, safe & prepped up for disasters. Stored food, water, silver, gold, medicine & tools - that's how you do it.

Marc45's picture

There's a reason that rich people make the rules.  They work much smarter that your "average joe" so they don't have to be at the mercy of a boss.

Why are you trying to penalize people who are smarter, more successful and make a lot more money than you?  Insecurity?

MeelionDollerBogus's picture

Unions need to organize bigger strikes & be willing to retrain workers so they can outright quit certain industries to punish them permanently for underpayment - and not retrain their replacements EVER.

bunnyswanson's picture

As typical these days, there is far more to the story. 

 

"...Driscoll, the CEO, departed suddenly and without explanation in March. It may have been that the Teamsters no longer felt it could trust him. In early February, Hostess had asked the bankruptcy judge to approve a sweet new employment deal for Driscoll. Its terms guaranteed him a base annual salary of $1.5 million, plus cash incentives and “long-term incentive” compensation of up to $2 million. If Hostess liquidated or Driscoll were fired without cause, he’d still get severance pay of $1.95 million as long as he honored a noncompete agreement.

When the Teamsters saw the court motion, Ken Hall, the union’s secretary-treasurer and No. 2 man, was irate. So much, he thought, for what he described as Driscoll’s “happy talk” about “shared sacrifice.”

The board replaced Driscoll with Greg Rayburn, a restructuring expert Hostess had hired as a consultant only nine days earlier. Rayburn was a serial turnaround specialist who had worked with such high-profile distressed businesses as WorldCom, Muzak Holdings, and New York City Off-Track Betting. He became Hostess’s sixth CEO in a decade. Within a month of taking over, Rayburn had to preside over a public-relations fiasco. Some unsecured creditors had informed the court that last summer — as the company was crumbling — four top Hostess executives received raises of up to 80%. (Driscoll had also received a pay raise back then.) The Teamsters saw this as more management shenanigans. “Looting” is how Hall described it in TV interviews.

Rayburn announced that the pay of the four top executives would go down to $1 for the year, but that their full salaries would be reinstated no later than Jan. 1. Hostess pays Rayburn $125,000 a month, according to court filings.

 

Here’s the union’s take:

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.

 

http://americablog.com/2012/11/hostess-twinkie-ceo-salary.html

dark pools of soros's picture

the crowd here doesn't care about worker contracts.. they only like ZH since they hate bigger snakes then themselves

camaro68ss's picture

go to china you F***ing commie. Stop poisoning my country with the filth that’s spewing out of your mouth.

economics9698's picture

Sometimes MDB is not funny.  I think the 30% was a attempt at humor.

massbytes's picture

Hostess revenue was around 2.5-2.7 billion.  I doubt what you are saying is true.  But don't let that stop you from a good story.

q99x2's picture

Wait until Obamacare comes in full tilt and the workers get sent back to the stone age via layoffs. The Obamaphones are going to be ringing off the hook then. This ain't nothing. Although it shouldn't be too bad if you are in one of the states that opted out.

Joe Davola's picture

Even though there is the opt out clause in that Obamination, watch out for that Supremacy Clause lurking just around the corner.

Navymugsy's picture

Fake trolls? This is inexcuseable!

Ctrl_P's picture

Running with the theme today...

 

This is inconceivable!

 

There, fixed.

Bansters-in-my- feces's picture

Pssstt...MDB...

Just for the record ,you,are not normal.

Magnix's picture

I thought it was 18.5K employees?

economics9698's picture

It's Herbert Hoover's fault.

CrockettAlmanac.com's picture

 

 

Hoover's role as founder of a revolutionary program of government planning to combat depression has been unjustly neglected by historians. Franklin D. Roosevelt, in large part, merely elaborated the policies laid down by his predecessor. To scoff at Hoover's tragic failure to cure the depression as a typical example of laissez-faire is drastically to misread the historical record. The Hoover rout must be set down as a failure of government planning and not of the free market. To portray the interventionist efforts of the Hoover administration to cure the depression, we may quote Hoover's own summary of his program, during his presidential campaign in the fall of 1932:

 


"We might have done nothing. That would have been utter ruin. Instead we met the situation with proposals to private business and to Congress of the most gigantic program of economic defense and counterattack ever evolved in the history of the Republic. We put it into action.... No government in Washington has hitherto considered that it held so broad a responsibility for leadership in such times.... For the first time in the history of depression, dividends, profits, and the cost of living, have been reduced before wages have suffered.... They were maintained until the cost of living had decreased and the profits had practically vanished. They are now the highest real wages in the world."


 

http://www.lewrockwell.com/rothbard/rothbard184.html

KCMLO's picture

Well we don't call it the Roosevelt Dam now do we?

A Nanny Moose's picture

Ding ding ding!!! We have a winner, boys, girls, and MDB.

Stoploss's picture

Let's hope the union workers are savers.. LOL..

So, how is the " you don't need the employers, they need you!!", union theme working out?

Manthong's picture

 There is an upside in this story.

15,000 or so monthly union extortion dues payments down the tubes.

It’s just a shame that the union bosses are all still collecting their outrageous pay and benefits.