Comments about ‘Letter: Good bye Twinkies, jobs as Hostess closes’

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Published: Friday, Nov. 23 2012 12:00 a.m. MST

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John Charity Spring
Back Home in Davis County, UT

Richard is correct. The current entitlement mentality of unions is driving businesses overseas. It is the only way that businesses can survive.

Where did this entitlement mentality come from? It came from the left-wing government which preaches that a man is entitle to a home, a car, and good wages--simply because he exists. Indeed, he is owed these things simply because he takes up space, according to the leftists.

The unions need to recognize that wages don't just materialize out of thin air. Wages only exist when someone works hard to create them. When artificially high wages are forced out of a business, the wages must come out of central assets, thus leaving nothing left for the business to function. Shame on the unions for destroying business, and shame on them for destroying America!

one old man
Ogden, UT

Unions did not destroy this company. It was destroyed by poor management and a flock of vulture capitalists and outfits similar to Bain Capital.

The workers are the losers. The vultures will walk away with million dollar plus Golden Parachutes. One example being the CEO who just recently was handed a 300% pay raise. Greg Rayburn was being paid $100,000 PER MONTH for his "services."

At least nine other top executives of the company also received massive pay raises, including one who received a pay increase from $500,000 to $900,000 and another received one that brought his salary from $375,000 to $656,256.

Where did this attitude of executive entitlement come from? Perhaps from right-wing greed that preaches that anyone who rises to the top of swamp is entitled to do at the expense of those who actually do the sweating that makes success possible for the executives?

(Anyone may verify this information by Googling "hostess ceo salary")

Salt Lake City, UT

JCS, how about paying attention to the actual facts?

Hostess has been losing money because demand for its products has declined. It has in the past dealt with declining profitability by squeezing worker wages and benefits to protect shareholder dividends.

This most recent attempt to deal with its financial problems, by once again squeezing its workers for the benefit of shareholders, was more than the workers could bear.

An 8% cut in pay, and an even greater cut in benefits such as health insurance and retirement, all to ensure shareholder dividends, rather than invest in the company's future.

If you worked there, would you be ok with that?

Now add to that pain the news that the company awarded its CEO a 300 percent raise (from $750,000 to $2,550,000) and at least nine other top Hostess executives received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another exec's salary went from $375,000 to $656,256.

And finally, Hostess is asking the bankruptcy judge to approve year-end bonuses to 19 executives averaging $100,000 each.

I'd go on strike, too.

one old man
Ogden, UT

John Charity Spring, will you please explain to us where the attitude of entitlement for high paid executives comes from?

I'd really like to hear how you justify or rationalize that kind of greed.

one old man
Ogden, UT

JCS has it backwards. The current entitlement mentality of some company executives is driving American prosperity downward. American businesses will not long survive if they force their workers into poverty.

Where did this entitlement mentality come from? It came from a growing number of right-wing greedheads who preach that a man is not entitled to a wage that can allow him a home, a car, and a secure retirement - no matter how hard or long he works. Indeed, if he works for a decent wage, he is subtracting from corporate profits and executive pay packages according to the rightists.

The corporations need to recognize that their products don't just materialize out of thin air. Products only exist when someone works hard to create them. When artificially low wages are forced upon workers, their morale collapses, thus leaving them with little recourse but to strike. Shame on the corporations for destroying themselves, and shame on them for destroying America!

The Real Maverick
Orem, UT

It's okay folks, now that Mitt Romney doesn't have to worry about his political career, he can go back to doing what he "does best!" Creating (domestic) jobs!


After all, he was the "job creator!" Now, lets see him create jobs!

LDS Liberal
Farmington, UT

40 hour work week - Unions
OSHA - Unions
Healthcare - Unions
Retirement benefits - Unions
Child Labor Laws - Unions
Bonded, Certified, and Licensed workforce - Unions
Fall of the Soviet Empire - Unions

Know what else is funny --
The only countries without strong Unions and outlawed strikes --
was Nazi Germany & Communist China

Why don't we rid of the Unions and make companies start putting up suicide nets?

Conservatives are killing America while supporting Totalitarian regimes!


2nd try
Hostess' problems go way back. They've been in bankruptcy since 2004.

CNBC: After Bankruptcy Hostess' "Sales Declined And Attempts To Roll-Out New Products More In Line With Changing Consumer Tastes Flopped." CNBC reported that the first round of bankruptcy "wasn't enough to save" Hostess, adding: "The company's sales declined and attempts to roll-out new products more in line with changing consumer tastes flopped." [CNBC, 11/16/12]

Forbes: Hostess Has Had Six CEOs In A Decade. When CEO Greg Rayburn took over Hostess in March 2012, he became the sixth CEO of the company in a decade. [Forbes, 7/26/12]

Wash. Post: January Bankruptcy Filing Shows Hostess "Would Have Lost Money Without Any Pension Costs At All." The Washington Post reported in January that Hostess "lost $250 million in the less than three years since it emerged from its previous bankruptcy. That means it would have lost money without any pension costs at all." The Post noted that Hostess "lost money in 30 of the past 37 quarters." [The Washington Post, 1/11/12]

Turns out that Hostess has no treasury department. It apparently doesn't have anyone who can perform treasury functions at all.

Ogden, UT

To The Real Maverick 9:02 a.m. Nov. 23, 2012

It's okay folks, now that Mitt Romney doesn't have to worry about his political career, he can go back to doing what he "does best!" Creating (domestic) jobs!


After all, he was the "job creator!" Now, lets see him create jobs!


Ecellent irony. Mitt just raked in obscene profits for himself and the other Bain executives in the past, creating few, if any, jobs in the process while costing a lot of people their jobs. I see nothing to indicate that he would do anything differet in the future (and whining at the same time because he didn't get what he felt himself entited to acquire -- being President). I'd love to see him doing what he should, but somehow I don't see that happening.

one old man
Ogden, UT

More information: Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000.
Gary Wandschneider, EVP, $500,000 to $900,000.
John Stewart, EVP, $400,000 to $700,000.
David Loeser, EVP, $375,000 to $656,256.
Kent Magill, EVP, $375,000 to $656,256.
Richard Seban, EVP, $375,000 to $656,256.
John Akeson, SVP, $300,000 to $480,000.
Steven Birgfeld, SVP, $240,000 to $360,000.
Martha Ross, SVP, $240,000 to $360,000.
Rob Kissick, SVP, $182,000 to $273,008.

This is Bain capitalism at its worst........a company using bankruptcy as a bargaining chip........it failed so they are liquidating a profitable company.........

But the worker on the factory floor was expected to take a pay cut from an average of about $32,000 to less than $25,000.

William Gronberg
Payson, UT

Mr Spring asks the question, "Where did this entitlement mentality come from?"

Well John, it has been around since "the year one". Kings were entitled to the kingdoms of defeated kings. The pioneers of Davis County were entitled to the lands of the earlier inhabitants. Pioneers were totally committed to the concept of entitlement to the lands of the Indians. Check your family history sir. You may have some entitlement heritage.

Ultra Bob
Cottonwood Heights, UT

The Hostess shutdown will probably cause more deaths to Americans that the Libyan thing.

If only we could get congress to investigate and hold meetings to determine exactly who is at fault.

Ogden, UT

"After all, he (Mitt) was the 'job creator!' Now, lets see him create jobs!"

He gave that up years ago. Obama claims the title now, according to his campaign. Let's see him do it. He can even use taxpayer money... something Mitt didn't have at his disposal.

Ogden, UT

@LDS Liberal:
"40 hour work week - Unions - etc."

You missed a big one, Liberal: Most American manufacturing jobs shipped overseas - unions.

"Why don't we rid of the Unions and make companies start putting up suicide nets?"

Why don't we get rid of unions and get our jobs back from overseas. The only unions that seem to be able to survive are government employee unions... who suck up taxpayer money.

Sandy, UT

Here is what is funny with all the posters who are pro union....

The Teamster union went in to hostess and found that the information the company was given them was accurate. They decided to some cuts of benifits and wages in order to keep the teamster working....

the bakers union did NOTHING! all they want was the money and benfits...

I do find it amusing that the pro unions posters are bashing the management for raises, when the unions are doing the same thing.....

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