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View Diary: Hostess took workers' pension money to fund itself (158 comments)

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  •  If the bakers had made those final concessions... (3+ / 0-)

    "to save the company" I have no doubt that the money saved would have just been pocketed by the suits and not used in any way to keep the company solvent. I would imagine that the union came to the same conclusion, thus the final "go fuck yourselves" to Hostess.

    The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. -- John Kenneth Galbraith

    by richardak on Mon Dec 10, 2012 at 03:13:04 PM PST

    •  Bakers Union seems to have thrown the Teamsters... (0+ / 0-)

      ...under the bus.  

      Based on this rejoinder filed during bankruptcy proceedings, the bakers union argues that its costs were already competitive, that the owners had acknowledged this,  and that it was prepared to cede some final concessions had the Teamsters agreed to mark their costs to market.

         JOINDER OF THE BAKERY, CONFECTIONERY, TOBACCO WORKERS AND GRAIN MILLERS INTERNATIONAL UNION IN OBJECTIONS TO DEBTORS’ EMERGENCY WINDDOWN MOTION AND MOTION PURUSUANT TO SECTION 1113(e) OF THE BANKRUPTCY CODE

      http://www.bctgm.org/...

          In early summer of 2011, officials of the Company visited with officers of the BCTGM and made a presentation to them. Central to that presentation was the Company’s acknowledgement of what everyone in the baking industry knew; Hostess’ production costs were neither excessive nor out of line with the market but its distribution costs were – to the tune of between $80 million and $130 million annually.
          .....
          Accordingly, when advisors for the BCTGM began meeting with
          Company representatives in the late summer, continuing literally until the day before this chapter 11 filing, they made two things crystal clear: (1) they were prepared to recommend to the BCTGM leadership that it accept concessions if, but only if, the Company (a) marked its distribution costs to market, (b) established a sustainable capital structure, (c) developed a plan for new revenue, and (d) gave meaningful successorship rights to the BCTGM; and (2) it was the BCTGM advisors’ view that if these conditions were not met, BCTGM workers were likely to strike the Company, because they had lost faith in it and believed that liquidation was preferable to the death spiral the Company had created.

      Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

      by PatriciaVa on Mon Dec 10, 2012 at 03:26:28 PM PST

      [ Parent ]

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