Left In Alabama   Follow leftinbama on Twitter

"Betrayal Without Remedy:" Hostess Management's "Creamy Filling" Includes Worker Pension Money

by: countrycat

Tue Dec 11, 2012 at 07:00:00 AM CST

Is it possible that anyone still believes that Hostess' bankruptcy was caused by "greedy unions?" Not with stories like this leaking from the bankruptcy filing.  Seems like the Hostess parent company stopped paying money into worker pensions in 2011 and pocketed the pension money instead.hostess mismanagement

Gregory Rayburn, Hostess's chief executive officer, said in an interview it is "terrible" that employee wages earmarked for the pension were steered elsewhere by the company.

"I think it's like a lot of things in this case," he added. "It's not a good situation to have."

Mr. Rayburn became chief executive in March and learned about the issue shortly before the company shut down, he said. "Whatever the circumstances were, whatever those decisions were, I wasn't there," he said.

You see? It's not his fault.  He's just doing a hard job and licking his lips over that $1.8 million bonus package to keep working while the company dissolves. 

Just so we get this straight: the workers did just what we're all told to do... make short-term sacrifices to save for a secure future.  But who gets the secure future?  The vulture capitalists who bought the company with the intention of treating it like a stolen car: something you break up and sell for parts.

For example, John Jordan, a union official and former Hostess employee, said workers at a Hostess factory in Biddeford, Maine, agreed to plow 28 cents of their 30-cents-an-hour wage increase in November 2010 into the pension plan.

Hostess was supposed to take the additional 28 cents an hour and contribute it to the workers' pension plan.

"This local was very aggressive about saving for the future," he said.

Employees in Biddeford began directing wages toward pensions in 1955, and the amount grew to $4.28 an hour per employee.

What sort of recourse to employees have?  Well... none, apparently.

 "It's what lawyers call betrayal without remedy," said James P. Baker, a partner at Baker & McKenzie LLP who specializes in employee benefits and isn't involved in the Hostess case. "It's sad, but that stuff does happen, unfortunately."

"Betrayal without remedy."  That kind of describes much of today's corporate business model, doesn't it?

How is it NOT against the law for a company to steal worker pension money?  Ask your congresscritters.... they wrote the laws.


countrycat :: "Betrayal Without Remedy:" Hostess Management's "Creamy Filling" Includes Worker Pension Money
Tags: , , , , , , (All Tags)
Print Friendly View Send As Email
Share |

Laws (4.00 / 2)
Aren't there Federal laws that protect pensions?

Time to stop blaming mean old unions for the Hostess demise (4.00 / 2)
It's becoming obvious the folks running Hostess were nothing but greedy crooks intent on squeezing every drop out of the company before deploying their golden parachutes.  Workers didn't kill this American icon, greedy management bastards did.

Work harder and work smarter!

Isn't this what Bain is (in)famous for? (0.00 / 0)
Just think, a Rmoney win could have put an entirely different spin on this...in fact, I'll wager it wouldn't be the story it is currently.

That America is not somewhere I want to live...

I've got three tools in my arsenal: my voice, my wallet, and my vote.

[ Parent ]



blog advertising is good for you


Be part of the state's largest & fastest growing Democratic grassroots organization. To receive our newsletter, text OTMDEMS to 22828. Follow us on Facebook.



Advanced Search

A community blog for progressive politics, ideas and current events in Alabama. Register now to join the conversation.

Friend and Follow Left In Alabama:

Join LIA's Facebook Page Go To LIA's Twitter Page Go To LIA's Flickr Photo Album Go To LIA's YouTube channel

- Mobile

Make a New Account



Forget your username or password?

LiA Contributors
- Admin
- Admin
- Economics & Aeronautics
- National Political Issues
- Political Strategy & Messaging
- Health Care
- Education in the Black Belt
- ADP Watch
- Climate & Alternative Energy
- Labor
- Alabama Legal Issues
- From the Center
- Equal Rights & GLBT Issues
- Roving Reporter

Please take our Blog Reader Project survey.

Support Left in Alabama with a Donation!

Your Amazon purchases can help fund this blog:
Support Left in Alabama
Buy Phones & More at Amazon Wireless


T.H.E. Social Work Agency
Adoption home studies & care management services in the North Alabama area.
Licensed, certified, caring social workers.

blog advertising is good for you

Bessemer Opinions
Birmingham Blues
Birmingham Science Examiner
Greg Varner's Blog
The Haze Filter
Hard Boiled Dreams of the World
King Cockfight
Legal Schnauzer
Loretta Nall
Peace Takes Courage
Pippa Abston's Blog
TJ Beitel
Thoughts & Rants of an Independent
Time is Spherical, Not Linear
WriteChic Press

ACLU of Alabama
Alabama Arise
Alabama Citizens for Constitutional Reform
Alabama Conservationist
Alabama Democratic Conference
Alabama Democratic Party
Alabama Legislature
Alabama Poverty Project
Alabama Secretary of State's Office
Encyclopedia of Alabama
Equality Alabama
Greater Birmingham Ministries
League of Women Voters of Alabama
Madison County Democrats
Marshall County Democrats
Over the Mountain Democrats
Alabama Political Reporter

Blog for Democracy
Blue Oklahoma
Burnt Orange Report
Daily Kingfish
Facing South
The Old Black Church
West Virginia Blue
Juanita Jean - Texas

Anzalone Liszt Research
Center for American Progress
FEC Electronic Report Retrieval
Follow the Money
In Their Boots
New Organizing Institute
Pew Research Center
Progressive States Network
The Contributor


 Subscribe in a reader

Add to My AOL

Powered by FeedBurner

Powered by: SoapBlox