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."
If CEO take a small cut from his Millions dollar salary, everything should be ok
Windy City Guy,
A republican in the White House created the problems with jobs we have today (don't get me wrong- BOTH parties are to blame or the sad state of the country)- they aren't going to be the ones to solve them- solving our nations problems includes actually TAXING those who have money (instead of heaping more taxes on the midde class), actually TAXING companies that send jobs OUT of the US, and actually TAXING China to import its craptastic gabage (even the Chinese couldn't believe how badly thy screwed us when they were in Chicago). And remember, Government doesn't create jobs, companies do. And CEOs are going to do whatever puts more money in their own pockets. You want the jobs back? Raise taxes the companies that would rather pay the equivilent of $1.50 per hour for craptastic support in India- make that "cheap support & labor" so expensive compaies have no choice BUT to bring it back to the US. Tax the hell out of Imported goods to make it cheaper to be Made in America. And finall, and most importantly, get every lazy @$$ American off their kiesters and back into theAmerican Pride mindset- every worker who won't take a job because its "beneath them" or because they can make the same amount of money on Unemployment doing nothing, all the families who have spent GENERATIONS on welfare- cut off these people's support and MAKE them work- bring QUALITY and PRIDE back to American labor- American products should be the BEST QUALITY and instead are typically known for being craptastic itself.
If the employees are being asked to take an 8% cut, what % are the cuts are the executive management taking??? And if they are taking a cut are they also getting the same deal as the rank and file??? It should be across the board. All benefits for executives should be ceased until they are profitable. And if they get their benefits back, so too should the rank and file, damn any union negotiations.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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