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View Diary: Hostess CEO Received 300% Raise Before Bankruptcy (86 comments)

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  •  It happens every day in corporate bankruptcies. (22+ / 0-)

    Our CEO was awarded $26 million by the bankruptcy court for his work restructuring Northwest Airlines in 2006. That was especially galling since under his leadership he conducted a race to the bottom by refusing to downsize adequately, jettison inefficient aircraft, and abandon unprofitable routes in order to maintain market share which was intended to, theoretically, drive any other major competing airline out of business. All of the major airlines participated and all suffered bankruptcy. None failed. Many suffered.

    For his forty pieces of silver, every employee group's pensions was frozen, wages were cut up to 40%, and decades of hard fought advancement in work rules and benefits were gutted. Vendors lost millions, bankrupting some. Capital lease rates on aircraft and equipment were drastically reduced at the expense of suppliers. Share holders, the very people whose interests were always claimed to be primary in contract negotiations through the decades, were wiped out. Everyone lost except the Weasel and his henchmen. Oh, and the investment bankers and lawyers made a killing. Ever wonder why they call it "making a killing"?

    Time makes more converts than reason. Thomas Paine, Common Sense

    by VTCC73 on Sat Nov 17, 2012 at 09:28:27 PM PST

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    •  The "Republican" approach to business is wrong (12+ / 0-)

      and has always been wrong and damaging to society as a whole. It is the "wolf in sheep's clothing" approach to business. It is only good for the wolf and certainly not for the sustainable wool industry or the sheep.

    •  And then they gave their imperiled employees (5+ / 0-)

      a pamphlet with "101 ways to save money". Remember #46? "Don't be afraid to pull something you like from the trash.". After AA took over TWA, flight attendants lost pensions while The CEO got a 10m dollar bonus, retracted after it came to light.

      "Bulshytt: Speech (typically but not necessarily commercial or political) that employs euphemism, convenient vagueness, numbing repetition, and other such rhetorical subterfuges to create the impression that something has been said." --Anathem

      by lavorare on Sun Nov 18, 2012 at 06:15:33 AM PST

      [ Parent ]

    •  Unions still the problem not exec salaries (0+ / 0-)

      Simple math will show that exec salaries are less than 1% of the salaries of 18,500 workers.  It is precisely the "hard fought advancement in work rules" that have to be demolished.  Why can't drivers who deliver wonder bread also deliver cake products?  Simple answer:  to force the company to hire twice as many delivery people as they really need.  There would be little need to cut salaries if the company were allowed to hire only those really needed to work.

      If a machine is not working, instead of a non-union worker climbing on a ladder to fix the problem, a union-worker climbing only a union ladder can be used.  Almost all work rules are not for safety, but for feather-bedding.

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