SalemNews.com, Salem, MA

Opinion

December 5, 2012

Letter: Workers the victim in Hostess deal

To the editor:

It’s no surprise that the leveraged buyout specialists who took over the bakery company that made Hostess products had no intention of trying to improve the company but destroy it because the sum of the parts would be worth more than the whole. They leveraged the company’s assets, taking out huge loans to allow them to take excessive management fees while saddling the company with huge debt payments, causing them to file Chapter 11 bankruptcy, asking the workforce to give back hard-won benefits over the years to keep their jobs while paying off debts for pennies on the dollar, a modus operandi of leveraged buyout operators. It wasn’t long before they filed Chapter 7 bankruptcy to liquidate and in the process asked the judge to allow their “hard-earned” bonuses to be paid. While 18,000 workers are thrown out of work, many who worked there their entire lives, the judge allowed the bonuses to be paid! The Bankruptcy Boys come out smelling like a rose, and such is the plight of America’s workforce in the age of corporate greed!

Saul P. Heller

Salem

1
Text Only | Photo Reprints
Opinion

AP Video
Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways Raw: Thousands Flocking to German Crop Circle At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City In Virginia, the Rise of a New Space Coast Raw: Otters Enjoy Water Slides at Japan Zoo NCAA Settles Head-injury Suit, Will Change Rules Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA
Comments Tracker
Roll Call
Helium debate
Helium