The members of the BCTGM union that rejected the last, best, and final offer submitted by Hostess have been blames by many for the company’s closing. My feeling that this company had been bled dry by executives and managers was the basis for my LTE that appeared in the St. Louis Post-Dispatch.
An apt comparison would be to ask would Jack Dawson sharing a piece of wood in the freezing Atlantic after the Titanic sank keep him alive.
This analogy was based on the history of hedge fund involvement and union concessions, both of which are signs of a company being bled to death. Unfortunately, lamestream media spent truckloads of ink blaming the workers without even detailing the contract offer rejected by these workers. Thankfully, Inside the Hostess Bankery, posted on DailyKos by a third generation Hostess employee dishes out the scoop from someone who lived the life. An eye-opening account that explains the workers rejection of this…
What was this last/best/final offer? You’d never know by watching the main stream media tell the story. So here you go…
1) 8% hourly pay cut in year 1 with additional cuts totaling 27% over 5 years. Currently, I make $16.12 an hour at TOP rate of pay in the bakery. I would drop to $11.26 in 5 years.
2) They get to keep our $3+ an hour forever.
3) Doubling of weekly insurance premium.
4) Lowering of overall quality of insurance plan.
5) TOTAL withdrawal from ALL pensions. If you don’t have it now then you never will.
Remember how I said I made $48,000 in 2005 and $34,000 last year? I would make $25,000 in 5 years if I took their offer.
It will be hard to replace the job I had, but it will be easy to replace the job they were trying to give me.
That $3+ per hour they steal totaled $50 million last year that they never paid us. They sold $2.5 BILLION in product last year. If they can’t make this profitable without stealing my money then good riddance.
What would you have done?