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

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  •  The post isn't clear (2+ / 0-)
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    johnny wurster, Sparhawk

    Did the company take the agreed on pension money since the Nov 2010 bargain, or decades worth.

    If the union didn't know this money was vulnerable to reallocation or if they did and bargained this way despite that possibility, that means they are incompetent or the bargain was made knowingly as part of a gamble on the firms future profit prospects, and or good faith of management, and the management's ability to turn the company around.

    I don't believe the union bargainers were just to simple to grasp the companies financial posture. They were clearly on the brink in 2010 and now over the cliff. If they hadnt operated with that money they would probably have just gone bankrupt sooner.

    Unless there is a whole lot more to the story that isn't being told here. Dividends? Profits? Bonuses?

    Maybe the company's model is just outdated and ill. The products they make are poison, sustained with food stamp money for poor kids experiencing a diabetes epidemic.

    Every time I see a mother with her kids in the gas stations stacking up on King Dons and Red Pop to purchase with food stamps I think, 'there ought to be a law against that'. It has the nutritional value of windshield washer fluid.

    Meanwhile poor community grocers close there doors at an alarming rate. I live in the city. I'm sure the same dynamic follows Walmart. Their employees can just spend their food stamps on that crap right were they work. At negotiated rock bottom prices no less.

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