No…it was July 2011. Hostess is also currently trying to pay top execs almost 2 million dollars in bonuses…for a failed company. See how ridiculous the business has been run?
And how much are these people getting paid now? They get nothing. Union gets nothing. All because the bakeries union didn’t ratify what the teamsters already voted FOR: namely, 8% pay reduction and increased contributions toward their own pensions and health care. The cash flow due to the strike destroyed any possibility of the company coming back. You can blame this and that, but the direct result was UNIONS.
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They made between 50K and 100K, Take 50K average, means at .77 per unit just to get whole they need to sell 64,935 units of cakes. Bimbo which is run far more efficiently pays drivers about $550 a week, which is $28,600 a year. They as you say do ok and why? Because they don’t let Union wages get ahead of that is sustainable. Something you clearly have no clue about.
Not that I trust your numbers in this discussion, but let’s suppose what you say is true: that is a textbook case of mismanagement. Letting labor costs run rampant is a management error.
Furthermore, Glassdoor reports Bimbo drivers earn 76-84K a year. At least in the US, although I’d not be surprised if you were comparing to wages in Mexico.
Go look up the last compensation package for Bimbo employees. Do i have to do all your homework?
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The debt was most cased by Union wages. Add up the management increases from July 2012, and then add up 18,400 people making 50K…see which is larger and see where the debt actually serviced. LOL
The debt from the first bankruptcy was caused by declining sales, excess capacity, payroll, and food costs. Union workers made concessions (management didn’t) as was negotiated. Everything else has to do with management of the company. Additionally, the debt grew by a third just going through the first bankruptcy. Which it never would have emerged from if union workers had not sacrificed.
Well the first time you mention food costs. But you failed to mention that the Union didn’t ratify the new contract. The strike killed the cashflow and the company went bust. Blame the unions for that.
Additionally, here is a Washington Post article that states that Hostess “would have lost money without any pension costs at all.” http://www.washingtonpost.com/business/economy/2012/01/11/gIQAxrXAsP_story.html?Post+generic=?tid=sm_twitter_washingtonpost Classic mismanagement.
You can find anything on the internet. Mostly, the view is the union was at fault. get over it.
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I knew your bias would show it’s hand. I love how no matter what the circumstance is they are “always treated poorly” Nice touch. And that’s why you are wrong, again.
You call what Hostess has done to the union workers being nice? Hell, the union workers bent over backwards and management still ���� on them (actually, not surprised at that).
You call what Hostess has done to the management being nice? Hell, the executives bent over backwards and now they get no wages at all because the company is bust. Yea keep skipping over that fact that they now get nothing because the UNION didn’t ratify the contract.
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Wrong again. The IC prove the route is sustainable because they stand to make or lose money based on sustainable numbers. Get your head out of your crack and learn how business works. The costs are not borne by the company in Bimbo’s case. That’s why they succeed among other things.
They save money with independent contractors? cheesy cheesy cheesy
Wow, man, you sound about as adept at this as the Hostess execs.
That is because you have no clue what independent contractor means. They pay all their own costs, not the company. That takes the company out of the problem of having to make sure every route makes a profit. Instead, they just sell product to distributors and most associated costs are not their worry.
