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Forum Post: The Death of Twinkies - Causes

Posted 1 year ago on Nov. 16, 2012, 9:52 p.m. EST by Progression (143)
This content is user submitted and not an official statement

Considering the salary hikes for the Hostess management, I can't help but think this was all part of a political move to generate hostility against unions.

"Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000 (300% raise) 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

NOTE: Some executives didn't take full raise. Source: Creditors' Committee court filings"

I see the media largely blaming the unions on this bankruptcy but no one covering the actions of the management prior to the bankruptcy. I also realize that Hostess had a number of other mismanagement issues attributing to the bankruptcy as well (such as buying up local competitors which greatly increased their debt). Article below:

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=18&cad=rja&ved=0CKQBEBYwEQ&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304072004577323993512506050.html&ei=a--mULnjCamr0AHQm4DAAg&usg=AFQjCNEtyo3O-See8yAILDAPbFvQm04oBg&sig2=LbZYdcveO0uqk7J_Q0nDSw

42 Comments

42 Comments


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[-] 1 points by stevebol (1269) from Milwaukee, WI 1 year ago

I would probably agree. The company knew this would get a lot of media coverage. The deal offered to the union wasn't bad considering what other job prospects are for the workers. It seems the Teamsters didn't approve of the strike but why do unions interfere with eachother in this way? When this blows over people will say their food sucked anyway. I look on the bright side, at least Hostess didn't ask for a bailout.

[-] 2 points by VQkag2 (16478) 1 year ago

This should clarify how the greedy dishonorable execs destroyed the company & the jobs of 18k decent hardwaorking Americans.

http://front.moveon.org/four-short-sentences-explain-who-killed-the-twinkie/?rc=daily.share

[-] 0 points by john23 (-272) 1 year ago

"Their food sucked"

Twinkies, my friend, do not suck. They will be missed...i'm not sure an america without twinkies is a place i want my kids to grow up in.

[-] 1 points by GirlFriday (17435) 1 year ago

I love this game.

[-] -3 points by VQkaq2 (-21) 1 year ago

I think the unions are to blame

Peace

[-] 1 points by GirlFriday (17435) 1 year ago

Are you bored, V? You know that isn't true.

[-] -2 points by VQkaq2 (-21) 1 year ago

The dems are fear mongers

Peace

[-] 1 points by GirlFriday (17435) 1 year ago

I think I am going to need a bit more coffee before I can give you a good ol' verbal beat-down.

[Deleted]

[-] 1 points by GirlFriday (17435) 1 year ago

I saw that earlier today. I just didn't have time to go back and deal with all that. Is he still here?


Love the deleted posts.

[Deleted]

[-] -1 points by VQkaq2 (-21) 1 year ago

I will need another refill also :-) Peace

[-] 1 points by TrevorMnemonic (5827) 1 year ago

the workers were asked to take wage and benefit cuts after previous contracts already cut wages and benefits.

This is not due to the unions. It's definitely due to poor management and possibly people not caring for Twinkies as much as originally thought. Although they are selling for as high as 31 dollars a box on ebay already.

[-] 1 points by DKAtoday (27542) from Coon Rapids, MN 1 year ago

Has the article been removed?

[-] 2 points by Builder (4202) 1 year ago

Try this link. http://online.wsj.com/article/SB10001424052702304072004577323993512506050.html

The creditors said in the court papers that testimony from Hostess's executive vice president of human resources indicates that before the bankruptcy filing, Hostess was working to shift its compensation structure. Hostess eliminated bonuses payable only if certain performance goals were met and, on July 26, the company's compensation committee signed off on "substantial salary increases for numerous senior executives," the creditors said.

Besides Mr. Driscoll, "other executives' salaries were increased by from 35% to 80%," the creditors said. The documents said that Mr. Driscoll subsequently renounced a portion of the increase while "other executives did not appear to have done so." Besides Mr. Driscoll, two other executives who saw their salaries increase have also left the company, according to the spokesman.

The court papers also cited the report of a Hostess compensation consultant saying that after a bankruptcy filing the company should tie payments to company performance and wrap them into an incentive plan.

Hostess "disregarded" the suggestion, the creditors said, and also failed to disclose the modifications. The creditors learned of the changes during a February deposition of the human resources executive.

[-] 0 points by DKAtoday (27542) from Coon Rapids, MN 1 year ago

Yep - the new business plan - rape pillage plunder. It is a disease.

[-] 1 points by Builder (4202) 1 year ago

I also read that the more popular product lines will continue to be made under licence by other companies. I know from experience that you can make baked products that have an unlimited shelf-life, so I guess twinkies will be sailing the ocean before hitting the shelves of America.

[-] 0 points by DKAtoday (27542) from Coon Rapids, MN 1 year ago

Seems to be the trend. One problem on this end though. If they (employers/copoRATions) keep sending the Work outside of the USA - they will have no one to sell their products to - in the USA - because everyone will be out of work. Do you think that will be when everything becomes free?

[-] 1 points by Builder (4202) 1 year ago

Long-term planning doesn't seem to fit the business concept. Like you say, it's slash and burn planning. Keep offshoring the profits, and move to north Africa. Just gotta thin out the population there a little first.

From top-to-bottom, there's a complicity that's becoming more apparent, and it's like they don't even care that everyone is onto them. Recent movie review I read where Brad Pitt's line was "America Isn’t a Country; It’s a Business. So Pay Me, Motherfucker." from "Killing them Softly"

Unfortunately, Brad goes on to say that capitalism is the only system that he agrees with, and I guess it's easy for him to turn a blind eye to the truth when he makes 25 million a year.

[-] 0 points by DKAtoday (27542) from Coon Rapids, MN 1 year ago

Yeah - I guess perspective will vary - depending on where you are standing at the moment - off to the side as a boulder falls or standing on the touchdown point.

[-] 1 points by Builder (4202) 1 year ago

Nice analogy. I laughed, despite the seriousness of the issue.

As an aside, a "super-cell" storm front hit Brisbane early yesterday, with hailstones larger than golf-balls. A second storm was brewing in the afternoon, that was twice the size, but luckily it broke into three storms, one of which made it to our place. Might be an interesting storm season here.

[-] 1 points by DKAtoday (27542) from Coon Rapids, MN 1 year ago

Fun in the new environment/climate ummm at least things will stay exciting???

New soap opera material - as the world churns - today we find Monica desperately clinging for life to the light fixture in what used to be her Desert Homes upstairs bedroom - as a relatively new event in the desert state transpires - the 39th day of rain - Monica clinging to the light fixture as the water rises wonders - what should I get from the store?

[-] 1 points by Progression (143) 1 year ago

Edited link to full Wall Street Journal article in main post.

[-] -1 points by WSmith (2033) from Cornelius, OR 1 year ago

Twinkies are Forever

The 'pirate' equity company (or as Romney pronounces it 'private' equity company) that owns the Hostess brands has asked a bankruptcy judge for permission to liquidate the company after workers refused to take yet another 30% cut in pay. The corporate media played this all up as being the fault of the unions of course.

The fact is that a company like this makes money hand over fist, and a succession of men like Mitt Romney simply carried all the money off. Purchased with nothing but debt, that was transferred in full to the company, as per the usual manner of such pirates. So began the process has made untold millions for the men in pin striped suits. This sort of thing was completely illegal until Ronald Reagan de-criminalized it, Letters of Marque as were: "The bearer may upon his discretion take all property of the enemy (the American people in this case) and suffer no penalty under the law. May God bless you and all the officers of your enterprise, and reward you handsomely. (and sniff, don't forget my cut)".

The pension plan alone was worth on the order of $2 billion, it's now in a pirate's chest buried in the Cayman Islands. The workers are down to the point where losing their jobs is not important anymore. If an actual baking company buys the assets it's possible they will be better off. This isn't the kind of operation you can move to China.

As for getting your Twinkies fix, fear not. During the height of the Cold War, a sprawling complex of caves in Missouri were filled with enough creamy treats to see the nation through decades of no food production that would be caused by the fallout. It's only been 50 years, that leaves another 950 years until the expiration date is reached. The expiration estimate is purely hypothetical, no laboratory technique was ever developed to simulate aging on package Twinkies. It's too bad Democracy isn't so enduring. http://www.prairie2.com/

[-] 1 points by VQkag2 (16478) 1 year ago

AND the greedy execs are asking the judge to give 2 million in bonuses after recent pay raises averaging 300%.

They have no honor.

[-] 1 points by WSmith (2033) from Cornelius, OR 1 year ago

GREED is all they need.

[-] 1 points by VQkag2 (16478) 1 year ago

They add nothing to the economy, andsuck up unearned obscenely large compensation. And they will sacrifice 18k families because they aren't making enough profit, instead of taking a pat cut themselves.

[-] 1 points by WSmith (2033) from Cornelius, OR 1 year ago

That's right!

It's Class War!

We're losing!

Time to really fight back!!

[-] 1 points by VQkag2 (16478) 1 year ago

There has been a class war for all of human history!

It is only called class war (by the upper class (1%'rs) & their repub puppets) when we (the 99%) strike back.

We will not be turned!

[-] 1 points by WSmith (2033) from Cornelius, OR 1 year ago

It's a war ANEW!!!

Greed has risen to new levels.

This election shows we can fight back, we're not helpless, if we just UNITE!!!!!

[-] 1 points by VQkag2 (16478) 1 year ago

Solidarity. Signed & shared you're save radio station facebook page.

[-] 1 points by WSmith (2033) from Cornelius, OR 1 year ago

Spread the wealth...!!

[-] 2 points by VQkag2 (16478) 1 year ago

Agreed. We just want our money back!

[-] 1 points by WSmith (2033) from Cornelius, OR 1 year ago
[-] 0 points by VQkag2 (16478) 1 year ago

Many zombies created by the RW propaganda huh?

[-] 0 points by WSmith (2033) from Cornelius, OR 1 year ago
[-] 2 points by VQkag2 (16478) 1 year ago

Thats funny. I like the anthem quality.

"we're reasonable, I mean no ones gonna eat your eyes" LOL

[-] 0 points by WSmith (2033) from Cornelius, OR 1 year ago

"We've reached an impasse, someone's gonna have to compromise."

[-] 1 points by VQkag2 (16478) 1 year ago

partisan lies

They ARE Zombies. trying to eat our brains with propaganda.

[-] 1 points by WSmith (2033) from Cornelius, OR 1 year ago

Propaganda, of course, business as usual. NOW, extinguishing apposing views is what they are aggressively perpetrating. Support Progressive Radio!

[-] 1 points by VQkag2 (16478) 1 year ago

That is the trick. The right has been unwilling to and now the left is beginning to embrace no compromise.

I certainly believe in compromise I just need to see theRight go 1st sinmce they have been most uncompromising for 4 years.

[-] 0 points by VQkag2 (16478) 1 year ago

I know we can't trust those scorpion ass bastards. I did say I wanna see them compromise 1st.

[-] 2 points by WSmith (2033) from Cornelius, OR 1 year ago

Cons are monsters, they can never be trusted, they don't die, they don't stop.

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