Heavy Democrat Involvement in Hostess Ownership

[cwo_ghwebb]

Yesterday, AFL-CIO head Richard Trumka may have broken a modern record for chutzpah exhibited by a labor leader Friday in criticizing management's decision at bankrupt snack maker Hostess Brands to liquidate in the wake of irreconcilable issues with its unions. In a Friday afternoon report at Politico, Kevin Cirilli not only let Trumka get away with it; he also lent the labor leader's contentions additional misleading support.

Trumka blamed the company's apparently imminent demise on "Bain-style Wall Street vultures." He wants everyone to believe that it's greedy, eeeevil Republican private-equity types who are on the brink of putting yet another company out of business. The "clever" framing of that quoted phrase appears to indicate that Trumka already knew better. It seems very likely that Cirilli also knew better. Three hours before the initial time stamp of Cirilli's report, Zero Hedge re-exposed the heavy involvement of D-D-D-Democrats in Hostess's management and advisors originally documented way back in july at CNNMoney by David Kaplan


Read more: Politico's Cirilli, Others Ignore Heavy Democrat Involvement in Hostess Ownership and Management | NewsBusters.org

Of course the national media never tells the entire story.

[daileyck1]

Beacuse it was the fault of a bain style squeeze for profits. Look at the financial report. And also this During the companys 2nd bankruptcy the CEO pay tripled.

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.

I would say wrong time for big raises. Time to get out of the bubble.

[cwo_ghwebb]

At this time I would say Teamsters are smarter than Bakers.

[aps45819]

Originally Posted by daileyck1

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.

I would say wrong time for big raises. Time to get out of the bubble.

It was the only time they could give themselves a big raise.
They knew they were going into bankruptcy and it would improve their position in court.

If the bakers had agreed to reasonable terms and the company kept operating, nobody would have gotten a raise.

[GURPS (Premo)]

More importantly, however, as America has been habituated following the last season of the reality TV show known as the presidential election, if Private Equity then "bad." Only this time there is a twist: because it wasn't really PE that was the pure evil in the Obama long-term campaign, it was associating PE with Republicans, and thus: with jobs outsourcing. And here comes the Hostess twist: because Tim Collins of Ripplewood, was a prominent Democrat, a position which allowed him to get involved in the first bankruptcy process in the first place, due to his proximity with the Teamsters' long-term heartthrob Dick Gephardt (whose consulting group just happens to also be an equity owner of Hostess). In other words, the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off since the narrative collapses when considering that it was a Democrat who rescued the firm, only to see it implode in a trainwreck that has resulted in the liquidation of a legendary brand, and 18,500 layoffs.

[BigBlue]

Originally Posted by cwo_ghwebb

At this time I would say Teamsters are smarter than Bakers.

Seems that way .From the link you posted I read this "

The rest of the story at CNNMoney is one of owners trying to do what they can to save a business, sometimes less than perfectly. Management got union concessions to emerge from bankruptcy the first time, but for a variety of reasons, it wasn't enough, and another round of negotiations was attempted last year. When it became clear that the impasse had no chance of being resolved except under duress, the company filed for bankruptcy again. Now it's not coming back


Read more: Politico's Cirilli, Others Ignore Heavy Democrat Involvement in Hostess Ownership and Management | NewsBusters.org

Unions seem to have come to the rescue once before with concessions and management could make it work,while I AGREE THE BAKERS ARE DUMB ,management has got to be held resposable here also.

[Sparx]

Originally Posted by aps45819

It was the only time they could give themselves a big raise.
They knew they were going into bankruptcy and it would improve their position in court.

If the bakers had agreed to reasonable terms and the company kept operating, nobody would have gotten a raise.

Good Grief, how stupid are you?

[aps45819]

Originally Posted by BigBlue

Unions seem to have come to the rescue once before with concessions and management could make it work,while I AGREE THE BAKERS ARE DUMB ,management has got to be held resposable here also.

All businesses exist for one reason and only one reason.

To generate a profit for their owner(s)

Why do so many people fail to understand that?

[aps45819]

Originally Posted by Sparx

Good Grief, how stupid are you?

[BigBlue]

Originally Posted by aps45819

All businesses exist for one reason and only one reason.

To generate a profit for their owner(s)

Why do so many people fail to understand that?

I do understand that but what if anything did management do to help that profit come in for the owners?