HOSTESS in current condition because of failed management

[Omaha Steve]

From email.

HOSTESS IN CURRENT CONDITION BECAUSE OF FAILED MANAGEMENT

The following statement was issued by BCTGM International Union President Frank Hurt in response to claims by Hostess Brands that it would begin liquidation should union members not end the strike and return immediately to production facilities:

“The crisis facing Hostess Brands is the result of nearly a decade of financial and operational mismanagement that resulted in two bankruptcies, mountains of debt, declining sales and lost market share. The Wall Street investors who took over the company after the last bankruptcy attempted to resolve the mess by attacking the company’s most valuable asset – its workers.

“They sought to force the workers, who had already taken significant wage and benefit cuts, to absorb even greater cuts including the loss of their pension contributions. I have said consistently throughout this process that the BCTGM is a highly democratic organization and that our Hostess members themselves would determine their future. By an overwhelming majority, 92 percent, these workers rejected the company’s outrageous proposal, fully aware of the potential consequences.

“Our members know that the plans all along of the Wall Street investors currently in control of this company did not include the operation of Hostess Brands any longer than it takes to sell the company in whole – or in part – in a way that will maximize the profits of these vulture capitalists regardless of the impact on the workforce.

“The wholesale bread and cake baking business is unique. The most successful and profitable wholesale baking companies share common attributes, most notably being executive leadership with extensive background in the business and a skilled and dedicated workforce. Hostess Brands and its predecessor companies have had the latter for decades.

“Unfortunately however, for the past eight years management of the company has been in the hands of Wall Street investors, “restructuring experts”, third-tier managers from other non-baking food companies and currently a “liquidation specialist”. Six CEO’s in eight years, none of whom with any bread and cake baking industry experience, was the prescription for failure.

“Despite Greg Rayburn’s insulting and disingenuous statements of the last several months, the truth is that Hostess workers and their Union have absolutely no responsibility for the failure of this company. That responsibility rests squarely on the shoulders of the company’s decision makers.

“I am sure that our members would be agreeable to return to work as soon as the company rescinds the implementation of the horrendous wage and benefit reductions, including pension, and the restoration of the cuts that have already taken place.”

BACKGROUND

A total of 24 Hostess production facilities are on strike or honoring the strike with picket lines established by striking Hostess workers at other BCTGM-represented facilities. Additionally, BCTGM members at one transport facility also are on strike. Company claims that union members are crossing picket lines and maintaining production at striking plants are vastly untrue.

Over the past 15 months, Hostess workers have seen the company unilaterally end contractually-obligated payments to their pension plan. These workers, many of whom have worked at Hostess and its predecessor companies for decades, struck in response to the company’s unilateral imposition of an unacceptable contract that was rejected by 92 percent of the union’s Hostess members in September.

While the company was demanding major concessions from union workers (wage and benefit cuts amounting to 27- 32% overall), the top ten executives of the company rewarded themselves with compensation increases, with one executive receiving a 300 percent increase.

The BCTGM represents more than 80,000 workers in the baking, food processing, grain milling and tobacco industries in the United States and Canada.

Follow the BCTGM:

Web: www.bctgm.org

Facebook: http://facebook.com/BCTGM

Twitter: http://twitter.com/BCTGM

[thelordofhell]

1. And a few months before bankruptcy, this happened.............

Salary Increases at Hostess

Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000
Gary Wandschneider, EVP, $500,000 to $900,000
John Stewart, EVP, $400,000 to $700,000
David Loeser, EVP, $375,000 to $656,256
Kent Magill, EVP, $375,000 to $656,256
Richard Seban, EVP, $375,000 to $656,256
John Akeson, SVP, $300,000 to $480,000
Steven Birgfeld, SVP, $240,000 to $360,000
Martha Ross, SVP, $240,000 to $360,000
Rob Kissick, SVP, $182,000 to $273,008

[mike_c]

2. that is utterly obscene....

Rat bastards.

[Kalidurga]

3. If prepakaged baked goods disappeared from store shelves I wouldn't shed a single tear.

But, that being said. The CEOs should look in the mirror when looking where to place the blame. My best bet is they did this on purpose. I can't think of a single reason they should get a huge pay increase while asking everyone else to take a pay cut.

[RoxyNexus]

4. It's time for the union and workers to buy Hostess out of bankruptcy

And unload the inept management. If they don't the assets could be very well acquired by Bimbo Bakery, yes Bimbo of Mexico which is already the largest baker in America.

Ask the former Sarah Lee workers how that worked out for them.

[w8liftinglady]

5. OK... who owns Hostess? this is a big deal in Dallas (right-to-work)

we have both Teamsters and Bakery, Confectionary, Tobacco and Grain Millers International Union members here who can not participate in the Collective bargaining.

[Teamster Jeff]

6. The Mayor of St Louis said..

that he was told months ago by Hostess that they were closing the St Louis plant.

[HiPointDem]

7. no failure, they took down the company on purpose. bankruptcy for profit.