moonbattery logo

Nov 18 2012

How the Union Bled Hostess to Death

These union boss salaries explain how the AFL-CIO–affiliated Bakery, Confectionery, Tobacco Workers and Grain Millers International got so carried away as to bleed Hostess Brands literally to death, throwing 18,500 people out of work and putting an end to the iconic Twinkie:

BCTGM_salaries

You can make a nice living as a parasite. On the down side, it only lasts until you have killed off your hosts.

On a tip from Steve A.

Tweet about this on TwitterEmail this to someonePin on PinterestShare on Google+Share on Facebook


  • http://www.henrypbabcock.com Henry

    lol I saw a comment on another site that blamed the extravagant salaries of the Hostess executives that drove them into the ground.

    The reality is unionized factory workers making almost $40/hr (wages & benefits) in automated facilities is unsustainable.

    Suck it union fucks; take your complaints to your brown gawd, ObrownMao.

  • Mary

    Look at the name of the union.. Bakery, Confectionery, Tobacco Workers and Grain Millers they’ve got a heck of a lot more poor slobs under their thumbs. Ever wonder why the AFL-CIO has a hyphen between the two parts of it’s name? Cause these unions absorb others to keep the good times rolling. They’re the original hostile takeover types.

  • Miz Barkee

    The unions are always looking out for the little guy. Not one of these leaders is over 6’6″!

  • lucy

    I USED TO BELONG TO THAT UNION BY NO CHOICE OF MY OWN. THEIR THE ONES WHO PUT THE TOBACCO WORKERS OUT OF JOBS. UNIONS HAS NO BUSINESS IN POLITICS. UNIONS SUCK……….. AFTER 29YEARS IN ONE ILL BE GLADE WHEN THEIR GONE…………

  • http://moonbattery.com Take The Red Pill

    And when these parasites have bled their unions dry, I bet that they’ll go into politics!
    We can see what’s ahead for us and the country!

  • Beef

    America is a rich country, and there is lot of bleeding yet to be done. It’s still good times for parasites.

  • yourfavoriteunkle

    Why isn’t Obama-lama-ding-dong asking these goonion execs how much money is enough? … or haven’t you made enough money off of the labor of others?
    Unions must die if we are going to be allowed to live as free Americans.

  • Sinister66

    Henry says:

    $40.00hr isnt that much when you take in account that also includes FICA,FUDA,and SUDA. Then you have the benefits(health and wealfare, union dues, vacation pay. they probably end up bringing home $20.00-$22.00 on the pay check.
    Also those union boss salaries are paid from the union dues(10.75 per month per member) from over 120,000 members across 7 states. Not directly from hostess

  • wut?

    I was wondering that too, it’s not like those union bosses walked into Hostess HQ, took the cash register and took some money out. Neither have I ever heard of unions taking a percentage of union members wages…

  • AC

    $40.00hr isnt that much when you take in account that also includes FICA,FUDA,and SUDA. Then you have the benefits(health and wealfare, union dues, vacation pay. they probably end up bringing home $20.00-$22.00 on the pay check.

    That’s right, something like $20/hr for watching a machine fill a twinkie before shuffling off to the break room.

  • KHarn

    “wut? says:November 18, 2012 at 4:12 pm”

    The members pay union dues” to the officers. SINISTER 66 can tell you about that, he mentions it in his post!

    Once upon a time, a farmer discovered that one of his geese laid a golden egg…

  • KHarn

    “Sinister66 says:November 18, 2012 at 3:37 pm”

    You mentioned all those benfits, yet the UNION LEADERS demanded more. Let them come down to Florida and make TEN-ELEVEN dollars an hour (Plus free lunch) maintaining a golf course.

  • Jim Lauterberg

    I’ve got to side with the workers, I was there for 17 years, they took 20%+ in 2009, and now they wanted 30% this time (they say it was 8%, but that was before adding in extra costs put to the employees) the management was way past horrible, and really had no clue what was needed to keep a bakery running. They say we were the cost overrun, but in all honesty labor was the only thing they came in under cost on.

  • Scrap Iron in Texas

    There is a bakery in Houston, Texas (Bimbo). I believe they bake bread for the Flowers company.
    Many of the workers are (or were) employed through temp agencies. These worker got about $9.00/ hr and could work up to 15 hours a day.
    No benefits, no vacations, but the people working were HAPPY to have the job.
    And with the product coming off the line as fast as it does, they don’t just stand around watching the machines, the move- constantly.
    Its tough work, but I guess that’s why its called “work”.

  • SNuss

    Of course, you DO realize that this means that those States that legalized marijuana use are facing a severe munchies shortage.

    This is just an example of how Liberal policies work. No matter the financial condition, the leeches always want more. Didn’t their parents ever read them the story of the goose that laid the golden eggs? That goose is cooked now.

  • ? everything

    according to limbaugh the govn’t is behind the petition for the govn’t to save the twinkie. looks like to me the union bosses got their cake & will be able to eat it too. anybody in cyber land recall the details on GOVERNMENT MOTORS?

  • Ghost of FA Hayek

    Jim Lauterberg
    Well then, now is the time for those unions to put their money where their big fat mouths are.
    These organizations, awash in cash can now purchase the company for pennies on the dollar, turn a profit, and still collect those dues.

  • TED
  • Sinister66

    KHarn says:

    “You mentioned all those benfits, yet the UNION LEADERS demanded more”

    All of those benefits? Health and welfare and vacation was all I listed.FICA,FUDA,and SUDA are payroll taxes.

    what more did the union leaders want?

    Scrap Iron in Texas says:

    “Many of the workers are (or were) employed through temp agencies. These worker got about $9.00/ hr and could work up to 15 hours a day.”

    But the temp agency was probably charging the bakery between $16 to $18/hr. not to mention all of the overtime and double time the temp employees working thoose shifts were getting.
    But I doubt this is even a true story your pitching. Any one with half a brain would run 2 8hr shifts and save alot of money in labor.

  • Winston Smith

    Well Jim, they wanted 30% more? The company was bleeding money (even if all the execs worked for $1 a year the losses would still be in the hundreds of millions.

    Now all the workers arent taking a 30% cut but a 100% cut – they are now Unemployed.

  • Winston Smith

    Yep, let the employees and their ultra wealthy union buy the company and see how paying $40.00 an hour workds out for them.

    Theres a reason why unions dont buy or build and run businesses. The demands of their own workers would put em out of business.

    Now it appears Twinkies and other snack brands are being bid on by a company in MEXICO ironically called BIMBO. Nice work union fools – exporting their own jobs to other countries…

  • Judith M.

    FICA, FUTA, and SUTA equal about 18 percent of pay in New York. The employee’s portion is 7.65% for FICA, FUTA is right around 6% and the company average for SUTA in New York is 3.4%. Granted, I’m sure insurance is more costly in New York than in some places, but if a person is taking home $20-$22 a hour AFTER all their benefits are taken care of, they are doing quite well. People in my area were crawling over each other to get an $11 per hour job at Costco (before reductions for FICA, FUTA, and SUTA). Maybe Hostess should have re-located here…

  • Sinister66

    oops “those”

  • Ghost of FA Hayek

    Then you have the benefits(health and wealfare, union dues, vacation pay. they probably end up bringing home $20.00-$22.00 on the pay check.
    Sinister
    One other factor that was not mentioned here are the sometimes ludicrous union work rules.
    Even this $22.00 number is arbitrary.
    A $22.00 Gross pay “here” is a desirable job. The line of applicants would be out the door, through the parking lot, and down the street.
    In say, California ? Not so much.

    But none of this matters at all to a bankrupt company.
    Now, if this company made watches for instance, they probably would have long since moved on to East Asia somewhere.
    Why ?
    Because it is much more difficult to sell a 3- $500 watch alongside an $89 dollar one.
    But since it produced fresh bakery goods (very difficult to ship) Hostess provides us with some valuable insight into why we are bleeding all these low skill jobs.
    For example, why not simply raise the price of Twinkies even more ?
    How about reducing product size/weight/volume ?
    They have.
    But (contrary to the pipe dreams of nanny state libs) people have not switched dietary habits from Twinkies to bean sprouts.
    They have instead found a better value for their dollar.
    These union fat cats and the poor slobs they have taken along for a ride have just gotten poorer.
    However, Hostess’s competitors, and most importantly CONSUMERS have become a bit richer for it.

  • Sinister66

    Winston Smith says:

    “Yep, let the employees and their ultra wealthy union buy the company and see how paying $40.00 an hour workds out for them.”

    You do realize if a an employee is making 12/hr the actual cost to the employer is more, right.

    Judith M. says:

    “People in my area were crawling over each other to get an $11 per hour job at Costco (before reductions for FICA, FUTA, and SUTA).

    Sounds low.

    http://www.glassdoor.com/Salary/Costco-Wholesale-Salaries-E2590.htm

    Plus FICA, FUTA, and SUTA would be paid by Cosco.
    So You would have the 11/hr+(FICA, FUTA, and SUTA) 18%+ (any local payroll taxes and unemployment ins)+ medical if offered.

  • Winston Smith

    Fact remains that 18,000 people are 100% unemloyed.

    Anyone netting $20+ an hour is living darn well. 2/3 of the “new” OBama jobs are low paying jobs where people are lucky to clear $8 an hour after deductions. And wait until Obamacare costs are passed onto workers and consumers in the form of higher prices.

  • Sinister66

    Ghost of FA Hayek says:

    Considering Entenmann’s ,which makes a similiar but superior product, is also unionized and doing fine kills your argument. they are also more expensive. You could counter with little debbie , non-union. But thier food tastes like crap.

  • Ghost of FA Hayek

    Considering Entenmann’s ,which makes a similiar but superior product, is also unionized and doing fine kills your argument. they are also more expensive.

    Then one would assume Hostess missed a delicious marketing opportunity of wrapping their product in gold cellophane and tripling their price, electing to market to the twinkie connoisseur instead of the cheap carb club.
    But this entire argument may be rendered moot if Obama nationalizes the twinkie so government can show us how it’s done.
    BTW, the Chevy Volt Club must be beating them off with a stick about now
    http://thevoltclub.com/

  • Winston Smith

    Entenmann’s is a small niche company. Hostess was a massive company and sold products to those without an Entenmann’s food budget.

    No to mention Entenmann’s is now owned by a MEXICAN mega baker – BIMBO. The same company that plans to bid on Hostess Brands like Twinkies. Good for the Mexican economy – not so good for America (though they will still need US drivers (probably illegal Mexcians).

  • Winston Smith

    Sara Lee is also owned by BIMBO. Mexico is the new China?

  • Winston Smith

    Its silly season. Check out the prices people are paying for just 10 pack box of Twinkies. $15-$25 a box. Over the weekend prices sometimes hit $50 a box. LOL!

  • Logic_Mine

    Actually, I believe that the owners of Hostess were forced to shutdown in order to “break-away” from the obligational contract of the Union.
    Sure, the Union facilitated this disaster, but where does that put the owners?

    Sure out of a job….for now. But it also gives them a NEW BEGINNING …without the UNION. I wouldn’t be surprised if a company starts up in MEXICO somewhere or in South America creating HOSTESS products under a different name but the some familiar names on the chairman board.

  • Comrade J

    Just a friendly reminder. Hostess executives were ON A SALARY OF $1 during bankruptcy proceedings, to make sure all the rumors of increased salaries were put to bed. (were union bosses doing the same? guess the answer) Don’t let the brainwashed union drones deceive you.

    Bakers Unions greed killed Hostess. Even Teamster Union indirectly admitted it.

  • Sinister66

    They seem to pay thier non-union employees good also.

    http://www.glassdoor.com/Salary/Hostess-Brands-Salaries-E329177.htm

  • Winston Smith

    Logic Mine – Hostess is going into Chapter 7 Liquidation and selling off the brands and the plants. Hostess is no more. Now maybe Bimbo or some other company may buy the distribution facitilies but production most likely will be moved out of the US.

  • Winston Smith

    Sinister, the non union pay was high but even if they all worked for FREE they would still have been bleeding money – lost $341,000,000+

  • Winston Smith

    Hostess lost $341 million in 2011 – unsure about 2012. Needless to day I doubt it was less.

  • Sinister66

    Comrade J says:

    Bakers Unions greed killed Hostess.

    I thought it was the revenue drop from $3.53b in 2003 to $2.45b in 2011.

    Ghost of FA Hayek says:

    “But (contrary to the pipe dreams of nanny state libs) people have not switched dietary habits from Twinkies to bean sprouts.”

    Well they switched to something other then hostess.

    http://www.privco.com/pastry-maker-hostess-brands-to-liquidate-after-national-union-strike-filed-for-chapter-11-in-jan-2012-privco-reveals-hostess-brands-financial-woes-20-drop-in-rev-from-31b-to-25b-from-2006-2011-145b-total-liabilities-with-approx-2b-unfunded-pension-liabili

  • Winston Smith

    Again, it doesnt matter how much non union employees made.

    Bottom line is unions lose big time – of course the union bosses dont care – they will still get paid.

  • Winston Smith

    Sinister, it doesn matter. When a union is involved with a declining business – either they play ball or get a 100% pay cut. The unions chose… poorly. Unless you think over 15,000 unionized employees losing their jobs is a good thing. Actually you probably do.

  • Winston Smith

    This article summs up well why Hostess is going bye bye.

    Plenty of blame to go around – management to unions. Of course in the end labor costs killed. Better management might have allowed them to stay afloat longer but with the unions it would have failed anyway. I guess the unions decided to call their bluff and play a game of chicken and LOST big time.

    http://9stucks.com/hostess-brands-stuck-in-their-own-twinkies/

    DitchDitch means: “There is a significant, persistent problem within the organization’s leadership ranks.” Hostess has:

    ■conflict among all key stakeholders: investors, hedge funds, unions, lenders, management
    ■conflict among unions
    ■turnover at the top – 6 CEOs in last decade
    Another WorldAnother World means: “Insufficient reactions to shifting external forces.” Hostess has:

    ■union attitudes stuck in the past – not in reality
    ■consistently declining sales –> End of 2011: $2.5 billion in sales…but drop of 28% from 2004 and 11% from 2008
    ■a need to call home…Hello…! Earth calling Hostess…consumer tastes have shifted
    ■tired product lines
    ■heavy competition from similar products – snack foods everywhere of every type
    MazeMaze means: “Our financials don’t tell a very good story.” Hostess has:

    ■a horrible capital structure
    ■a high fixed cost structure
    ■high labor costs
    ■pricing pressure
    ■increasing commodity costs
    ■burdensome obligations – at End of 2011:
    ■40 pension plans
    ■$2 billion unfunded pension liability
    ■$860 billion of debt
    ■increasing losses – $341 million in 2011
    RoughRough means: “The organization has high blood pressure.” Hostess has:

    ■pervasive unions:
    ■12 unions
    ■372 collective bargaining units
    ■stifling, restrictive work rules
    ■complexity:
    ■36 bakeries
    ■565 distribution centers
    ■5,500 delivery routes
    ■50,000 customers
    ■aging equipment (e.g. plant, delivery trucks)

  • Ghost of FA Hayek

    Well they switched to something other then hostess
    Sinister
    Darn, another missed opportunity.
    They could have stuffed those twinkies with bean sprouts.

  • Comrade J

    @Sinister,

    I am not arguing that Hostess Brands have not struggled for other reasons. Even their management was upfront about it. [Furthermore, it would have remained to be seen if they would have survived the Communist-O' Great Depression. But now we'll never know...]

    The question is who/what drove the final nail through the company’s already weak financial health and made sure it could not recover? Bakers Unions Greed. About that, there are no if’s or but’s.

  • Comrade J

    It is interesting to notice that someone last week put out a petition to nationalize Hostess Brands.

    Considering that GM’s nationalization was nothing more than stealing money from the taxpayer and giving it to the Union Bosses who mismanaged and wasted regular union members retirement funds and benefits, it is not difficult to imagine who would have been interested in starting this current petition.

    The unfortunate reality is that regular union members are being systematically financially raped and betrayed by Union Schweine [Union Bosses]. Doesn’t that make you, ladies and gentlemen, want to join a union?

  • Ghost of FA Hayek

    Comrade J
    Now is the perfect time for that bakers union to put up or shut up, purchase Hostess for a song,( no GM style shareholder government strong arm tactics and show us all how it’s done

  • Comrade J

    GofFAH,

    Schweine only know how to stuff their faces and poop all over the place. And regular union workers, who are just trying to make a living, are too brainwashed or scared to overthrow these pigs.

  • KHarn

    “Sinister66 says:November 19, 2012 at 6:21 am
    “what more did the union leaders want?”

    How the hell should I know? They didn’t like what was offered, so the MUST have wanted more.

    As for “all those benefits”, you’re going for semantics. Or maybe you can tell us just HOW MUCH must be mentioned before anyone can say “all those”.

  • Sinister66

    Comrade J says:

    The question is who/what drove the final nail through the company’s already weak financial health and made sure it could not recover? Bakers Unions Greed. About that, there are no if’s or but’s.

    Dont buy into “its the bakers union’s fault”. Hostess employed approx 18,000 members of this union but there are still over 100,000 members employed in others businesses. Hostess seems to be the one with the problem.

    I think the main cause of thier problem was mis- management

    KHarn says:

    “How the hell should I know?”

    You made the statement. The fact is they werent demanding anything.

    “As for “all those benefits”, you’re going for semantics. Or maybe you can tell us just HOW MUCH must be mentioned before anyone can say “all those”.”

    Semantics my ass. you thought the payroll taxes I mentioned were employer provided benefits.

  • Comrade J

    @Sinister,

    Sometimes whether you buy something or don’t doesn’t change the reality. As noted before even Teamster union indirectly acknowledged that Bakers Union have gone nuts and caused unemployment both for other union and non-union workers.

    Let’s hope that this new judges attempt to have Bakers and Hostess give another try to mediation works out and Bakers do not do anything stupid.

Alibi3col theme by Themocracy