Friday, November 30, 2012

Bankruptcy: Make More Money without those pesky employees......

Is it just me or is anyone else sensing a trend here? Seems like more companies, conglomerates, private equities..or just plain vulture capitalists... have discovered it was more profitable to ruin a company than to run it and have to deal with decent wages and benefits, things that honest employees expect in exchange for productive activity.

"Those workers had their pay reduced 3 times while the CEO took a 300% raise for himself but conservatives who love to tell us how wonderful corporations are and how badly we need to take care of them, still blame the workers who took all they could take before they had to do something about it. Walmart made profits of 15 billion last year while American taxpayers subsidized their employees who made so little they had to get food stamps and medicare. We are heading to becoming a plutocracy unless those of us who outnumber them start putting our foot down and saying, enough is enough!"   (HuffPo commentor earlier today)
Hostess Brands is just the latest in a long line of companies here in the United States over the years, to have a revolving door of CEOS who have "tried to make the company profitable"...only to reward mostly themselves.

As was stated in one of the company's earlier attempts at restructuring:
"Creditors of Hostess Brands Inc. said in court papers the company may have “manipulated” its executives’ salaries higher in the months leading up to its Chapter 11 filing, in what the creditors called a possible effort by Hostess to “sidestep” Bankruptcy Code compensation provisions."

Or in the words of Warren Buffet:
"Getting fired can produce a particularly bountiful payday for a CEO, Indeed, he can ‘earn’ more in that single day, while cleaning out his desk, than an American worker earns in a lifetime of cleaning toilets. Forget the old maxim about nothing succeeding like success: Today, in the executive suite, the all-too-prevalent rule is that nothing succeeds like failure.”  
Firms like Kodak, Lear Corporation, Enron, Visteon Corporation, Circuit City, Pilgrim Pride, Armco, Damon Corporation, Countrywide, just to name a few have been very profitable for their "disgraced" CEOs. And of course, I'm sure you have not forgotten Bain Capital of late-Romney fame...

But the folks on FOX News keep pounding away on the meme that those old unions, unskilled (?), lazy, nonwhite, not pulling-themselves-up-fast-enough boot- strappers, unappreciative females, and pot smoking liberal college students are to blame for all of this: if they'd only be as grateful as those folks in China and Bengladesh....

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