Hostess' tough road out of bankruptcy
Employees at the embattled company are being asked to take an 8% wage cut this year.
"We have a path to emerge, but it's a difficult one and it's a painful one," he says in the following video. "It's painful for the employee because it requires wage concessions and pension concessions. They have been through this wringer once already."
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All employees at Hostess are being asked to take an 8% wage cut this year, Rayburn said. The company's cost structure is the problem, as revenue remains "solid" thanks to the company's powerful brands. Though it may be tempting to blame unions for the company's woes, Rayburn doesn't buy that argument.
"I don't think unions bring down companies," he said. "In Hostess' case, there is plenty of blame for everyone."
I worked for Hostess for 22 years and lost my job due to outsoursing. In those 22 years one of the biggest problems that I saw was that there were too many chiefs and not enough indians. The top level management in recent years made decisions based on no real knowledge of the baking business, but based their restructuring on the "bottom line" only. One of the former CEO's was given a million dollar bonus to come in and "save" the company. He, as well as several others since, completely failed to do so. When is someone going to recognize that the problems start at the top. The "worker bees" who gave their all were the ones to suffer the consequences of poor management. It is sad to think that such iconic brand names may become a distant memory in the very near future.
My husband works for them, they took a paycut 4yrs ago of $120 per week, now they want another 80-100 per week, havent had a wage increase in yrs. They want to now take another when just in this branch, there is 1 supervisors with 3 extra acting supervisors and only 7 routemen. Can you tell me why you need 4 supervisors for 7 men, PLEASE!! Its things like this that have this company in the shape they are in. Seems to me that some positions in management can be eliminated before you come to the routemen for their share.. I just gave you the most sensible solutions without the millions in yearly salary you are paying upper management for free. Try it, IT WORKS!!!. The last paycut from workers ended in management giving huge bonuses and salary increases within the year of taking our little $120 per week... Cut your expenditures at the top end not the bottom. There are alot of excess in upper positions!!
Wonder how many of the white collar execs are being asked to take an 8% pay cut to save the company. Blame the Union because that guy makes $14 an hour and thats a ridiculous wage. Nevermind that the CEO running the company into the ground makes over $1,000 an hour and thats just 1 Exec. They also have a CFO (Chief financial officer), COO (Chief Operating Officer), and CMO (Chief Marketing Officer). Each one of these positions pays over $1 million a year.
Alan Mullaly took a $3 million pay raise at Ford and 2 weeks later asked the workers to take a $3 an hour pay cut. Yep its those darn Unions ruining companies. LMAO. Yeah right.
Farmers cost go up = employee paycut
Gas prices go up = employee paycut
Maintiance and towing cost go up= employee paycut
Electric company increases rates =employee paycut
Insurance rates go up = employee paycut
Health insurance rates go up =employee paycut
Pension funds make bad investments=employee paycut
Ceos and management increase salaries=employee paycut
Advertisement cost go up= employee paycut
Equipment and supplies go up= employee paycut
Supply and demand goes up= employee paycut
Union dues go up =employee pays to keep ther job!
30,000 employees have taken paycuts and pensions cuts
AND STILL BANKRUPT???????????????????????????????????????????????????
HOME OF THE BRAVE LAND OF FREE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
One problem with Hostess is they are about double the price of a Little Debbie, whom they regarded too lightly when they first challenged the market. Little Debbie has more than double the selection of snack cakes than Hostess, who is relying on their old stand-bys like Twinkies, Ding-Dongs, etc. In tough economic times, people are driven by thrift and if given the choice of "Hostess Twinkies, $3.99 a box of 8, or "Little Debbies Golden Creme Cakes, $1.79 a box of 8, and the taste is comparable, most consumers will take the cheaper item. And this is a cheaper Brand Name, not a generic label item that projects lowest quality on the shelf. And Little Debbies aren't the only ones crashing the party. There are Mickey Cakes and others who are marked well below Hostess. If you're going to charge more than double for something, you better blow them away to justify it and I don't think Hostess has done this.
If the union memebers take a pay cut, will management taka a pay cut ?
It's crappy undercutting by Mexican companies like Bimbo that are causing the problem for Hostess. Bimbo comes in and provides inferior products and those that don't know better keep buying the junk put out by Bimbo and others because that's what they're used to.
Say it ain't so, Hostess. Please, no Bimbo and their crummy Hostess imitations in the U.S.
BTW, Twinkies, Cupcakes and all their delicious pastries are not what's causing you're health problems. It's eating too many of them that causes the problem. Maybe if you didn't make a steady diet of Twinkies, you might be in better health.
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The stock price falls 11% in midday trading after the struggling company gives a weak forecast.
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