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View Full Version : 18,500 People lost their jobs today unwilling to take a 10% pay cut.



wazi99
11-16-2012, 10:56 AM
18,500 People lost their jobs today unwilling to take a 10% pay cut. Hostess is closing its doors after filing for bankruptcy the employees went on strike after being asked to take a 10% pay cut to save the company. CEOs offered to take a much larger cut but still the Unions said no.

http://www.foxnews.com/us/2012/11/16/hostess-brands-to-liquidate-lay-off-18500-after-crippling-union-fight/

Info on Hostess http://en.wikipedia.org/wiki/Hostess_Brands

Cali
11-16-2012, 12:12 PM
Terrible and sad. Honestly, I would take the 10% pay cut, it is much better than being lay off, and since if I been with the company so long, I don't have the heart to see the place I work hard for all these times goes bankruptcy, and closed down

This is just the begining, you will see in 2013, many of situation like this going to happen throughout USA, Thank you to Oduma policies, free healthcare, free welfare, free cell phones, free this, free that. And if I get lay off, Oduma better give those free stuff to me, LOL!

roadmaster
11-16-2012, 12:22 PM
It wasn't just the 10% pay cut. They would also have to give up their pensions that many worked for a lot of years.

wazi99
11-16-2012, 12:27 PM
It wasn't just the 10% pay cut. They would also have to give up their pensions that many worked for a lot of years.

That is not true just new employees wouldn't get it. Just like Obama is talking about with the Military to cut all pension plans for new soldiers but keep it for old ones.

Funny how they are willing to do that for people who put their lives on the line but the Post Office must keep theirs.

roadmaster
11-16-2012, 12:31 PM
That is not true just new employees wouldn't get it. Just like Obama is talking about with the Military cut all pension plans for new soldiers.

They must to have had many new employees because the pay is low there as it is.

wazi99
11-16-2012, 12:37 PM
They must to have had many new employees because the pay is low there as it is.

How low was it? It sounds like your just making things up now.

roadmaster
11-16-2012, 12:43 PM
How low was it? It sounds like your just making things up now.

I watched the news last night while they were interviewing these people. A guy that had worked there 5 years would have lost all his pension and a pay cut.

roadmaster
11-16-2012, 12:46 PM
Another K-mart is closing it's doors today here in NC. Oh by the way if they had took the pay cuts there was no guaranty they would keep their jobs.

wazi99
11-16-2012, 12:58 PM
I watched the news last night while they were interviewing these people. A guy that had worked there 5 years would have lost all his pension and a pay cut.

That's just not true. Union lies about this. Union bosses keep their job as people they should be working for get laid off.

roadmaster
11-16-2012, 01:02 PM
That's just not true. Union lies about this. Union bosses keep their job as people they should be working for get laid off.

Well that's what he was told. I don't work there. How are you sure the company didn't tell this worker this?

Evan Mazepa
11-16-2012, 01:32 PM
The CNN story confirms that there is an important pension aspect to the situation as there usually is since pensions have gotten to be the problematic issue with private and government entities because they are future and most importantly often underfunded liabilities. Someone who has the time should research and see if/what the government "pension protection act " would do regarding some relief for these workers. Of course if the government has to bail the pensions out guess who pays !!!!




http://money.cnn.com/2012/11/16/news/companies/hostess-closing/index.html?hpt=hp_t2

Mainecoons
11-16-2012, 01:34 PM
It wasn't just the 10% pay cut. They would also have to give up their pensions that many worked for a lot of years.

There are laws relating to vesting of pensions. In any case, now they've given up ALL pay and pensions. Hardly as good as losing some of it.

The political election was won by the "new demographic." Now the old demographic is voting on the "job" election and it ain't gonna be pretty for the new demographic.

Evan Mazepa
11-16-2012, 02:04 PM
There are laws relating to vesting of pensions. In any case, now they've given up ALL pay and pensions. Hardly as good as losing some of it.

The political election was won by the "new demographic." Now the old demographic is voting on the "job" election and it ain't gonna be pretty for the new demographic.

Based on the CNN article which I only read selectively itappears that it was mostly the “bakers” union that wanted their dough now and did not want their dough to rise in the future from theirshare of the company as an investment. If that if true they cooked their own goose.

Deb4953
11-19-2012, 10:58 PM
It wasn't just the 10% pay cut. They would also have to give up their pensions that many worked for a lot of years.

Even if it did include the pension, they certainly are not better off now that they are out of work. Not a good move in this economy.

KC
11-19-2012, 11:07 PM
Even if it did include the pension, they certainly are not better off now that they are out of work. Not a good move in this economy.

Agreed.

Welcome to the forums Deb!

sbgatfi
11-22-2012, 03:28 AM
A case of the Union job monopolists shooting itself in the head. Obviously the cuts were needed by Hostess to maintain solvency and remain profitable. After all isn't that the reason for conducting a business in the first place, i.e. to earn a profit. Guess the owners felt it wasn't worth the lack of it to continue the business. Their choice. The worker sells his labor to the owners who use their financial capital and business expertise to keep the enterprise alive and earn a profit from their efforts. No profit? Doors get closed. So what did the strike and union accomplish exactly? Bye bye jobs. Congratulations guys. Now everyone loses. Never ate their products so I won't miss them but I'll bet the workers and their families will.

The lesson? Businesses ain't charities. When they stop being profitable, they go bye bye. (Unless of course, a socialist leaning leader steps in and steals public money and gives it to the business. Think too big to fail for examples.)

Peter1469
11-22-2012, 09:01 AM
The Teamsters are considering suing the Bakers Union for screwing this up.