14 hours ago
Tuesday, November 20, 2012
Who Will Survive?
My friend and resident liberal commentator sent me a link to this article, which makes a lot in interesting points.
First how the AFL-CIO is ready willing and quick to blame Bain Capital for Hostess' demise. Although Bain had nothing to do with Hostess in any way shape or form. Is blaming Bain a knee jerk reaction or a left talking point? Hard to tell.
But we do find out that a venture capital outfit DID have a hand in Hostess. A company called Ripplewood, which was founded by Timothy C. Collins, a major Democratic donor, purchased Hostess out of its earlier bankruptcy; intending to turn it into a showcase of how to rebuild a union company.
Yeah; that worked out well; didn't it?
Who is the first person to get involved? Richard Gephardt, former Democratic House leader.
So while the AFL-CIO is spouting "Bain', like a raven perched on a bust of Pallas, it was actually the left side of the aisle that was raping and pillaging the Twinkies. No wonder we haven't seen any long screeds in the press or on CNN about the EVIL capitalists ruining the country, one poor little union company at a time.
Another interesting point is the increases in executive compensation:
Perhaps the most egregious sin of Ripplewood’s oversight of Hostess was the increase in management’s compensation at the same time it was seeking to cut employee compensation. The Confectionery, Tobacco Workers & Grain Millers International Union pointed out that the company’s new chief executive was paid $2,550,000, up from $750,000. Another “executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256,” the union said. Mr. Collins declined to comment.
Let me say this about that; First; the company is privately held, so salaries and compensation are not of public record anywhere, so it had to be some sort of espionage, if the numbers are correct. Which they may not be.
Second; assume they are correct. That is a total increase in compensation of $2,481,256; or $134 per employee. $2.58 a week- 6 cents an hour.
Amazing how math works, ain't it?
I'm not saying Management is 100% right and the union is 100% wrong. I won't even admit to a 75/25 split.
All I know is if 10% of the country is out of work, and I still have a job, 8% is a hell of a lot less than 100% when it comes to a pay cut.
On a personal note, I worked in a union show a few years back that was going through the same thing Hostess was. My union brothers were of the opinion that if it weren't for them our industry would cease to exist. Push came to shove, and they went out on strike. We were back within a week, but the damage was done. less than 6 months later the place was gone.
Guess what? the industry still exists.
And NONE of us are working in it.