Unions Killed the Twinkie

[Teatownclown]

Don't worry, when the zombies come, you, Gas, and Gweed will all be okay, because zombies eat brains.  

You realize that the word "zombie" is a manner of disguising an epidemic and as a result we will see many new bacteria and plagues and even more mental illness from the environmental changes? Many scientists believe with all the changes in weather monstrous decimation of yields and health happen.

I'm trying to come up with a thread title...Zombie is code for "scary" ...may have to wait until after Dec. 21st....

[heironymouspasparagus]

The judge forced them to mediation. They were in court asking for approval to pay management bonuses.

That is what class warfare is really all about in this country.  As everyone knows, but the deflectionists try to deflect.

Once again goes to comments I have made in the past about transfer of ownership - like a family business cashing out.  In this case, the PE cashing out.  Let them do so, and tax the stuffing out of it.  Or sell to an employee stock ownership plan and give them a tax break.  Under no circumstance let management benefit by huge bonuses for its failure.  This PE group has been milking Twinkies hard for years, now want to sell of the dried out husk of what's left.  Leaving 18,000 other people who have worked for that company trying to make it a success. 

It is a good old fashioned, down home, tent revival, Bible thumping, Old Testament style abomination!

[heironymouspasparagus]

And by the way - that "milking" was to the tune of over $1 billion in debt they saddled the company with.  Gee...wonder where that money went?  Oh, yeah...bonuses to management for "successful" business operation.

[Townsend]

[carltonplace]

Yeah capitalism.

Capitalism sure, but not smart capitalism. They can't afford to pay basic payroll but they want approval to pay bonuses to management.

[heironymouspasparagus]

Yeah capitalism.

Not even distantly related to capitalism.

Read Peter Drucker if you want to know what capitalism is all about.  Or SHOULD be.
And management.

[Townsend]

Nightly News tweet:

BREAKING: Judge approves Hostess bonus payout plan; 19 Hostess senior executives in line for up to $1.8M in bonuses

Another tweet:

BREAKING: Judge approves Hostess shutdown plan on a final basis; judge say no evidence to support a denial of wind-down plan

[TeeDub]

It isn't a traditional bonus...   It's an incentive to stay around and get the most out of selling the brand name and assets.

Paying 1.8 million is nothing when you can sell the name and assets worth an estimated $2.3 billion to $2.4 billion.


"The money is intended as an incentive for 19 top-level managers to remain with the Twinkies and Ding Dongs maker to oversee its liquidation.
The payouts will be granted only if managers "achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down,""

[Red Arrow]

It isn't a traditional bonus...   It's an incentive to stay around and get the most out of selling the brand name and assets.
Paying 1.8 million is nothing when you can sell the name and assets worth an estimated $2.3 billion to $2.4 billion.
"The money is intended as an incentive for 19 top-level managers to remain with the Twinkies and Ding Dongs maker to oversee its liquidation.
The payouts will be granted only if managers "achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down,""

$1.8 Million/ 19 = $94,736.84 each.

I would want at least $100,000.01  

OR...

It could pay the direct salary (no benefits or company part of payroll tax) of 60 employees at $30,000/yr for one year. 

[Townsend]

It isn't a traditional bonus...   It's an incentive to stay around and get the most out of selling the brand name and assets.

Paying 1.8 million is nothing when you can sell the name and assets worth an estimated $2.3 billion to $2.4 billion.


"The money is intended as an incentive for 19 top-level managers to remain with the Twinkies and Ding Dongs maker to oversee its liquidation.
The payouts will be granted only if managers "achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down,""

That doesn't sell ad time/space.  We need the outrage or we don't follow the story.

[heironymouspasparagus]

It isn't a traditional bonus...   It's an incentive to stay around and get the most out of selling the brand name and assets.

Paying 1.8 million is nothing when you can sell the name and assets worth an estimated $2.3 billion to $2.4 billion.


"The money is intended as an incentive for 19 top-level managers to remain with the Twinkies and Ding Dongs maker to oversee its liquidation.
The payouts will be granted only if managers "achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down,""

They were first asking for $300 million.  That is also in addition to all the hundreds of millions they paid out in the past as "bonuses/options/etc".

But, yeah...no doubt it was the unions...  not.

[nathanm]

It isn't a traditional bonus...   It's an incentive to stay around and get the most out of selling the brand name and assets.

I always found the people who have proven themselves lacking at getting the best value out of a company to be the perfect fit for getting the best value out of a company.

[heironymouspasparagus]

I always found the people who have proven themselves lacking at getting the best value out of a company to be the perfect fit for getting the best value out of a company.

Works every time, doesn't it?  GM, Chrysler, Delta Airlines, Continental...

And lest we forget history - check out 'Chainsaw Al' and his stellar work at Scott Paper....

[Teatownclown]

Ruthless execs. More evidence that it's not totally the Union's fault. The Union's always the scapegoat for faltering business. The liability of continuing operations must have far exceeded the benefits. They couldn't print money so they bailed.


Hostess Maneuver Deprived Pension

http://finance.yahoo.com/news/hostess-maneuver-deprived-pension-051400720.html

"It's what lawyers call betrayal without remedy," said James P. Baker, a partner at Baker & McKenzie LLP who specializes in employee benefits and isn't involved in the Hostess case. "It's sad, but that stuff does happen, unfortunately."

[cynical]

The Department of Labor has taken the position in one local case I was involved in that unpaid but vested pension benefits belong to the employee, whether the money is paid by the employer or withheld from employee wages, so even if they have remained in the possession of the employer, the employer holds those funds in trust and appropriation of the funds for the employer's purpose is embezzlement. If in this case any vested pension benefits were used to pay for operations, that is not a breach without a remedy. Those who had authority can go to prison. The unvested portion is another story, which is probably what they're talking about.

Ruthless execs. More evidence that it's not totally the Union's fault. The Union's always the scapegoat for faltering business. The liability of continuing operations must have far exceeded the benefits. They couldn't print money so they bailed.


Hostess Maneuver Deprived Pension

http://finance.yahoo.com/news/hostess-maneuver-deprived-pension-051400720.html

"It's what lawyers call betrayal without remedy," said James P. Baker, a partner at Baker & McKenzie LLP who specializes in employee benefits and isn't involved in the Hostess case. "It's sad, but that stuff does happen, unfortunately."