Well, the wind blew and the shit flew and Hostess lasted but a week or two. The ink wasn’t even dry on the election certifications before Hostess… or what remained of Hostess after it had been picked clean by private equity companies and hedge fund investors… folded with the right using its failure as a weapon with which to bash both labor and the left, which apparently equate as one and the same to the simple minds on that end of the spectrum. I know, Hostess is old news, totally last week and all like that there but it’s also a perfect example of the way the financial sector in this country today does business under NeoCapitalism.
The truth is that your Twinkies weren’t destroyed, by either organized labor or the lecherous left in the form of greedy employees. Anyone who says that the “greed of the employees” destroyed hostess is a corporate fricking shill which simply means he’s a goddamned liar. Your Twinkies were stolen… stolen by the same bloodsucking leeches that are doing their best to steal everything else in the country that isn’t nailed down (and I’m told that the next big Wall Street bubble is going to involve tools to pull nails).
We’ve talked here before about the way in which Hedge Fund scavenger hyenas are able to extract millions or billions, depending on the size of the carcass they’re feeding on by installing their own people and paying them enormous sums to preside over the company’s death throes. The thing needs to be understood is that hedge funds don’t buy a company’s to profit a little by it’s success. They buy a company to profit a lot by its failure, often loading it up with tons of debt, none of the proceeds of which go back into building the business but virtually all of which are used to provide “enhanced return to institutional shareholders” and to provide immense fees and compensation packages for the hedge fund managers and their picked cronies on the BOD and in upper management.
Hostess was no exception and the “hedgies” involved in the debacle that Hostess became might as well have been reading directly from one of Eddie Lampert’s Sears/Kmart scripts because their “management of Hostess is a classic example of how Wall Street would rather profit from failure simply because failure is easier… and cheaper… than actually striving for success. Think about that next time one of them has the fricking gall to push his face into our lives to try to tell the rest of us that WE are the cause for any failures in America. The sonofabitch makes his millions actively promoting failure and betting against the country’s future and I for one don’t need any condescending fricking lectures from him or his ilk about shared sacrifice or personal responsibility.
Mark Merolli, in the article cited above:
This Hostess bankruptcy reminds me of when Sonny had to get Paulie to help him manage his restaurant, in the movie “Goodfellas.” Private equity picked Hostess up in bankruptcy, on the cheap, and inserted upper management. The upper management does nothing to help the company grow or evolve. They don’t invest in new technologies, new trucks, new equipment, or new healthier products. They just squeeze every last dollar they can out of the hard working middle class people living paycheck to paycheck, and when there is not a penny left to pinch, they shut it down, and sell it for scrap. They win either way. They either get their blue collar employees to work for below middle-class wages, and make more money or liquidate it, and make money.
Or they move the company overseas where they can employ cheap sweathouse slave labor, leaving American employees out of work while still staying in business. As you can see… in spite of the fact that these bastards get the capital gains tax break for “risking” their own money… don’t take any risk. They don’t risk their own money because there’s no risk involved. Once a hedge fund or as Bain likes to call themselves, a private equity firm, gets its hooks into a company, there are two things you can take to the fricking bank… a) that anyone connected with the hedge fund(s) is going to make beaucoup bucks and b) that company or at least the rank and file workers in that company, are flipping doomed.
Mr. Merolli quickly puts the lie to the greed of the unions/workers being a motivating factor in the shutdown of the company .
In 2004, Hostess unions agreed to large concession on wages and benefits, and going forward would be earning less than the national average against its competitors. This move helped Hostess to save an estimated $100 million. That is what the unions conceded. So now what were the executives running Hostess and the private equity managers willing to concede, to prevent another Hostess bankruptcy? Check out these executive concessions reported by the Wall Street Journal. These are the pay raises the top executives gave themselves, as they told unions to take pay cuts or be liquidated.
Hostess bankruptcy, top executives take pay raises
- Brian Driscoll, CEO, (about) $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
Driscoll took a fricking 300% raise when it was known that the company was running in a total failure mode that had been deliberately induced and you want to claim the employees are the greedy ones here? You people blaming the workers are welcome to show me one goddamned rank and file line worker or truck driver in that company that got a 300% raise. I’ll tell you what the average Hostess employee got. On top of GETTING the privilege of becoming the lowest paid workers in their industry, they GOT their health insurance made unaffordable, they GOT their pension funds looted by those same hedge fund sonsofbitches that were looting everything else and, once there was nothing left for Driscoll and his goons to loot, they GOT their jobs eliminated and I’ll be goddamned surprised if in the near fricking future, probably as part of another fricking “restructure” we don’t GET Hostess goodies imported from fricking China which if nothing else ought to about double the junk food kill rate in the country.
Again,anyone who blames the American worker for the demise of the American standard of living is a goddamned liar. He’s not mistaken, he’s not misinformed or even ill informed. He’s a goddamned liar, plain and simple. You want to let the Wall Street and the big multinational companies run your country? OK dumbass, but don’t try to tell me they’re going to be doing me… or you in the long run… any damned favors while they’re doing it. They aren’t in business to see YOU get something, they’re in business to get it all for themselves. I don’t really give a rat’s ass how gullible you are but you’re dragging me down with you and that pisses me off.
For info on how Driscoll and his little hedge fund Mafia ripped off the workers’ pension funds Check Here