Yes, my friends. It is true. Remember the sad story of the bankruptcy of Hostess Brands, makers of iconic American goodies like Twinkies, and Ding Dongs? Last week we heard how management was blaming greedy union workers for the shut down and sell off. This week there is a bit of a twist to the story.
On Thursday, Hostess reported to the bankruptcy judge that it was in talks with 110 companies about buying the bankrupt company's brands. Now, get this-- as part of the liquidation, the company is asking the bankruptcy court to approve 1.8 million in bonuses for 19 senior executives to assure that they stay around to supervise the liquidation and transition of the company. At the same time,according to Bloomberg.com , retired employees and executives are being asked to give up their pensions and retirement benefits. Here's a quote:
Also at today’s hearing, a company lawyer told the judge that Hostess won’t be able to provide retiree benefits to some former employees.
The lawyer, Heather Lennox, said the company would cut $1.1 million a month slated for the pensioners..........So, to sum up, the senior execs get big bucks to supervise the liquidation of the company, while retirees with twenty and thirty years of service, to whom the promise of a fixed pension was given, get up to a 75% slash in their benefits. Oh those evil greedy union workers getting in the way of hardworking, corporate executives-- doesn't your heart just bleed?
Welcome to the dark side of the American Dream. Ayn Rand would be proud.
photocredit: 33News
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