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View Diary: Hostess and union agree to mediation (52 comments)

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  •  I think that's entirely reasonable. (10+ / 0-)

    They want the public perception of this mess to be that the greedy stubborn unions killed the Twinkie. Another round of failed negotiations can only help that cause.

    The response should be to highlight the bad faith of the owners in all this. Insist that that 300% raise be taken away (why get a reward for driving the company to liquidation?) rather than take everything from the workers.

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    by Code Monkey on Mon Nov 19, 2012 at 01:03:58 PM PST

    [ Parent ]

    •  It would be nice, though, if the court mandated (11+ / 0-)

      that the pensions which weren't funded must be fully funded before the vulture capitalists get their cut.  The pensions were agreed to before the vulture capitalists came around (I'm referring to what was promised to workers years ago) to loot the place by putting in CEO's who knew nothing about how the business ran.

      •  Bankruptcy law already defines the order creditors (1+ / 0-)
        Recommended by:

        get paid, and the various creditors transacted business based upon this understanding.

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        by nextstep on Mon Nov 19, 2012 at 01:35:38 PM PST

        [ Parent ]

        •  Nope (7+ / 0-)

          I don't expect anything fancy to happen in the Hostess case. The financiers will be made whole and everybody else left screwed high and dry as usual.

          But there is nothing automatic in bankruptcy. That's why there are bankruptcies judges, not bankruptcies clerks.

          The law defines a default priority but the trustee has the power to object to each and every claim and kick them to the judge for hearing and trial. And claimants also have to right to stir shit up in front of the judge. And contrary to what bankruptcy judges love to say, they have a lot of leeway and very broad power to modify claims, to "recharacterize" them through equitable subordination, as the term goes (and a power reaffirmed in totality by the 4th circuit 6 years ago, btw, in a case of deferred billing downgraded all the way down to equity (ouch)).

          And if there is one case where any bankruptcy judge worth his salt would have the opportunity to make a pig's breakfast of the default priority, it would be Hostess Brands.

          But it's hard work. They have to conduct hearings, adjudicate the claims and motivate their decisions. So they don't like to do that. Way simpler to rubber stamp the default priority and claim to have their hands tied by the law.

          I deal in facts. My friends are few but fast.

          by Farugia on Mon Nov 19, 2012 at 03:03:33 PM PST

          [ Parent ]

        •  And The Workers Transacted Business.... (1+ / 0-)
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          ...under the understanding that they were earning a pension.

    •  Exactly (6+ / 0-)

      I've yet to see a single Hostess article in the mainstream press mention the union's previous concessions or the massive pay raises the suits have given themselves, so most folks walk away thinking the unions are entirely to blame for this mess.

      Journalism really is dead.

      •  ACTION to contact mainstream media (8+ / 0-)

        Tell them, please, about previous union concessions and massive pay raises the bosses gave themselves.
        Tell them whatever is true and that you notice their reporting failed to mention key points.

        Media Contact Kit:

      •  The local paper's web site did this (1+ / 0-)
        Recommended by:

        The article said little about the mismanagement of the company and a lot about how the unions are to blame. Oh, there were a lot more words than that, but that's what it boiled down to.

        The comments section was even worse. The average comment section on this particular site drops my IQ by about 10 points anytime I read it. This time it dropped by at least 40 points and I had to go learn French so I could read some Sartre in order to bring it back up.

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        by Omir the Storyteller on Mon Nov 19, 2012 at 04:17:41 PM PST

        [ Parent ]

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