Hostess Brands, inc. engages in unrestricted war against labor union

2012-11-16 "Hostess Blames Union For Bankruptcy After Tripling CEO’s Pay" by Annie-Rose Strasser from "ThinkProgress.org"
[http://thinkprogress.org/economy/2012/11/16/1203151/why-unions-dont-shoulder-the-blame-for-hostesss-downfall/]:
Today, Hostess Brands inc. — the company famed for its sickly sweet desert snacks like Twinkies and Sno Balls — announced they’d be shuttering after more than eighty years of production.
But while headlines have been quick to blame unions for the downfall of the company there’s actually more to the story: While the company was filing for bankruptcy, for the second time, earlier this year, it actually tripled its CEO’s pay, and increased other executives’ compensation by as much as 80 percent.
At the time, creditors warned that the decision signaled an attempt to “sidestep” bankruptcy rules [http://online.wsj.com/article/SB10001424052702304072004577323993512506050.html], potentially as a means for trying to keep the executive at a failing company. The Confectionery, Tobacco Workers & Grain Millers International Union pointed this out in their written reaction to the news that the business is closing [http://www.sacbee.com/2012/11/13/4983174/hostess-continues-pattern-of-misinformation.html]:
[begin excerpt]
BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256.
[end excerpt]
Certainly, the company agreed to an out-sized pension debt, but the decision to pay executives more while scorning employee contracts during a bankruptcy reflects a lack of good managerial judgement [http://www.businessinsider.com/a-cost-by-cost-breakdown-of-the-hostess-bankruptcy-shows-employee-retirement-funds-are-owed-big-2012-1].
It also follows a trend of rising CEO pay in times of economic difficulty. At the manufacturing company Caterpillar, for example, they froze workers’ pay while boosting their CEO’s pay to $17 million [http://thinkprogress.org/economy/2012/07/23/567201/caterpillar-pay-freeze/]. And at Citigroup, CEO Vikram Pandit received $6.7 million for crashing his company, walking off with $260 million after the business lost 88 percent of its value [http://thinkprogress.org/economy/2012/10/16/1021701/pandit-260-million/].

2012-11-17 message from "AFL-CIO": Want the real scoop on the Hostess story? While Hostess management wants to blame BCTGM International Union members for its demise, the truth is that had it not been for the valiant efforts of BCTGM members over the last 8 years, including accepting significant wage and benefit concessions after the first bankruptcy, this company would have gone out of business long ago.