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Originally Posted by mostpost
The cut is 32% not 8%. The 8% is just the first of many proposed cuts. Do you understand what a 32% cut means? The story talks about a worker who makes $17 an hour. After a 32% cut that workers annual salary goes from $35,360 a year to $24,044 a year. And that is before taxes are deducted; taxes and Social Security and Medicare. Basically they are reduced to the poverty level.
Hostess is owned by two hedge funds. This is Bain Capital all over again. Instead of modernizing the facilities and investing in new equipment, they stopped funding the pension plan. Instead of paying the employees they diverted money to executive salaries. The company is going under not because of union intransigence. It is going under because the owners want it to go under. This is a classic example of vulture capitalism.
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Most, I think you're being unfair here. Hostess is not in trouble because the owners want it to go out of business. It is in trouble because it is losing money. I'm not saying that's the union or workers fault, it probably is a combination of management mistakes and the fact that the demand for their unhealthy products is not there anymore. Let's face it, only kids like Twinkies but Twinkies are not healthy and parents nowadays are more careful about what they let their kids eat.
They announced today that they are closing after workers failed to report to work by yesterday's deadline. Also, where did you get your facts about 32%? I read that they were offered an 8% pay cut and they would have to pay 20% of their health insurance. This would put them more on par with many other workers in the private sector with similar jobs.
