Saturday, November 17, 2012

TWINKLE, TWINKLE LITTLE TWINKIE

I might have eaten eight packages of Twinkies, and a few of those cupcake thingies in my lifetime. 

An interesting food product, Twinkies. They contain no milk and thus have a shelf life of about 27 days (not the years often credited to them).


I also read that if you freeze Twinkies and then microwave them for 45 seconds they will explode!


Twinkies and their brothers and sisters from Hostess could never be considered anything more than an artificial bakery item from Hostess meant for snacking.


Then there was the Wonder Bread division of the company.


Wonder Bread had the distinction of being both tasteless and able to be rolled up in a tiny ball, placed on a hair hook and used to catch mullet. 


Hostess Brands and its beloved bread and snack cake products dates back to the late 1800s. They are one of the largest wholesale bakers and distributors of fresh-baked bread and sweet goods in the U.S.



A strike by The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, protesting a new contract imposed on them has brought them to their fiscal knees. The union represents about 5,000 Hostess employees
Hostess' nearly 18,500 workers will lose their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said CEO Gregory Rayburn in a statement.

Let's understand that the purpose of going into business is to make money. Nobody goes into business, with its costs, risks and headaches, for the purpose of losing money. Nobody.


If a business cannot make money (read: profit), it cannot stay in business, and that's just the way it is.


The time came for Hostess to offer its employees a new contract. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union did not like the terms of the new contract, so they went on strike.


While on strike, they used intimidation to attempt to influence the rest of Hostess' employees to stop work as well.


Employees were told by the company that the contract offered was the best that could be done in this day of economic turmoil consistent with maintaining a decent bottom line (profit).


The union refused to give in, and thus some 5,000 people were responsible for the unemployment of some 13,500 other people.


That's certainly fair, isn't it?


Actually, while many union thugs and liberal/leftists might think so, it isn't.


It is sad that the union led motto of, "I want what I want, when I want it, where I want it, how I want it no matter what and if you don't give it to me I'll close you down" has resulted in the bankruptcy of this venerable company.


This is one more example of how much evil power unions hold and how they are absolutely not ashamed to use that power, even if it means the loss of jobs for thousands of innocent people.


The problem with this country is not the government (although they are no help at all). The problem is that, led BY the government, we have lost the heart and soul of the nation.


Until we can change the hearts and minds of individuals, this country will never be what it was designed to be and will continue its slide into the economic abyss.


(And did you notice that President BO (the amateur president) did not rush to send millions of tax dollars to Hostess because they were "too big to fail?")


After all, it's only 18,500 people.

12 comments:

Craig said...

Until we can change the hearts and minds of individuals, this country will never be what it was designed to be and will continue its slide into the economic abyss.

Ya got that right. Joe, this is textbook Romneynomics. The last time Hostess went into bankruptcy it was gobbled up by investment bankers for pennies on the dollar. The unions took concessions to keep the co. afloat.

Since then Hostess had had 6 ceo's in 10 years, none of whom had any experience in the baked goods industry. They aren't interested in the co., only how much they can wring out of it. The bankers loaded it with debt, paid themselves big salaries and never did a thing to adjust to a changing market.

In July, when the co. was showing big losses, here's what they were doing with managements compensation.

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.

The BCTGM strike was just an excuse to do what they were going to do anyway. It will end up in the bankers chop shop and sold off in parts. Their creditors are left with nothing and the bankers put more money in their pockets. The taxpayer will pick up the tab for a fraction of the workers pension.

It is sad that the union led motto of, "I want what I want, when I want it, where I want it, how I want it no matter what and if you don't give it to me I'll close you down"

The unions weren't asking for more, they were asking for less in cuts. This is exactly how Mittens made his money. Remember one of his talking points in the campaign was how wages have declined? It's what happens when you let bankers and Merger and Acquisition artists rule the world. Workers are forced to take less or threatened with closing up shop. They can go work at Staples or WalMart for minimum wage. The owners of Hostess ran it into the ground and they blame the workers who take it in the shorts every time.

(And did you notice that President BO (the amateur president) did not rush to send millions of tax dollars to Hostess because they were "too big to fail?")

TARP was under Bush, the banks Were too big to fail. Obama saved the auto industry because the ramifications of losing auto manufacturing in the U.S. would have had huge consequences. It worked. The nutrition free, empty calorie, processed snack food industry is alive and well.

Ducky's here said...

Remember, Joe, the left is here to help you understand.
You can get the facts from any of the business trades.

Seems that Hostess had a Romney experience.

Hostess is owned by Ripplewood Holdings, a vulture capital firm, and two hedge funds, Silver Point Capital and Monarch Alternative Capital. As is typical for such parasites, they have loaded the company with debt and are slashing employment and benefits to maintain profits. They managed to pile on 250 million in debt which they paid themselves preventing the company from upgrading production.

The vulture capitalists demanded more (after PREVIOUS union givebacks):

An immediate 8% wage reduction

The shift of at least 20% more health care costs onto its employees

Elimination of the employees’ W-1 (retiree medigap insurance)

Closure of additional plants (10-12), refusing to tell the union which plants are profitable, which plants will be closed, why, etc.

Elimination of the eight-hour work day.

Hostess unilaterally stopped paying its pension obligations in violation of federal labor law.

And when the union which had made previous concessions says enough, well it's all the unions issue, right? Please stop

Joe said...

Craig: "The unions weren't asking for more, they were asking for less in cuts."

Typical lib-talk. Not raising taxes as much as we said we were going to equals a tax cut.

Since liberals really don't know how to read I will let you know that I made no mention of pay or salaries in my post. I merely said the union did not accept the proposed contract. That's the truth.

Xavier Onassis said...

I see Craig and Ducky are on Fact Patrol Scramble tonight. I'll Stand Down and get some R&R.

Good job guys.

Ducky's here said...

@Joe --- I merely said the union did not accept the proposed contract. That's the truth.

-------
He's going to the mat on this one, XO.

Yes that's true Joe and we gave you the details describing why they didn't accept getting stiffed while the hedgies walk off with a bundle.

Ducky's here said...

Joe, Twinkies or Snoballs?

I was always partial to Snoballs myself.

Craig said...

I merely said the union did not accept the proposed contract. That's the truth.

Yup, that's the truth. It's also true that 5 months ago the CEO tripled his salary and the other officers got an average 80% pay raise. The workers were asked to take a pay cut, reduced pensions and pick up another 20% of their health care. Hostess was planning to close 6 facilities and they wouldn't tell the workers which ones. The Teamsters accepted, narrowly (53% of members), but the BCTGM didn't. They said enough is enough.

So, Joe, you've got the mismanagement team of a failing co. giving themselves huge raises and asking the workers to give up what they had previously negotiated for. In your world the unions are the evil thugs.

This isn't the "free market', it isn't good ol' American Capitalism. The hedge fund managers who own Hostess risked nothing. They risked other peoples money, the investors in the fund. You want to treat this kind of economics like the irrefutable laws of physics. It's not, the system has been manipulated. No one wants to punish success, these people are being rewarded for failure. They're sociopaths and they are dragging us down. That's who you are siding with.

You're a good Christian man. I can't believe that what these people are doing jibes with the teachings of Jesus. If you ever get a chance, open your mind and watch this documentary airing on PBS. Park Avenue: Money, Power & the American Dream. If you do watch, reject it on it's content, not it's source. If you're open to truth (somehow I doubt it), it might turn your world upside down. It made me sick to my stomach.

Craig said...

I wanted to add, I doubt you'll watch the doc but to peak your interest, it's not a one sided screed. One of the main villains in the film is Chuck Schuemer.

Ducky's here said...

Thanks Craig.
Wasn't aware of that film.

The guy did ENRON: Smartest Guys in the Room, should be worthwhile, Joe.

Joe said...

Craig, Ducky and XO: You don't know what you are talking about.

Ducky's here said...

FYI Joe:

WHITE PLAINS, New York (Reuters) - Hostess Brands Inc agreed in court on Monday to enter private mediation with its lenders and leaders of a striking union to try to avert the liquidation of the maker of Twinkies snack cakes and Wonder Bread.

Craig said...

Craig, Ducky and XO: You don't know what you are talking about.

Shorter: "I got nothin".