Tuesday, November 20, 2012

Don't believe everything you read on Facebook

Another great reason to not believe most internet/Facebook memes!
This meme is making the rounds on Facebook today courtesy of a Facebook page called "We Survived Bush. You will survive Obama."
It makes some big claims that seem pretty outrageous, even if you do buy into the idea that all CEOs are evil and greedy.
So I did my own research.

Here are the facts (and unbiased facts at that. I don't like Twinkies or Wonder Bread. But I do love Hohos.)-
1. Yes, in January of 2012, several of the execs asked for pay raises, including then CEO Brian Driscoll, who asked for a $1.5 million raise.
2. The motion (to the board) DID NOT PASS.
3. Brian Driscoll left the company in March.
4. The current CEO is Greg Rayburn. He makes $100,000/month.
5. In September, during the bankruptcy proceedings, the Teamsters agreed to major concessions, including cuts in wages and company contributions to health care. As part of the deal, all of the company’s unions were to receive a 25 percent share of the company’s stock and a $100 million claim in bankruptcy.

Let's read that right. Yes, the company asked the union if they could cut wages and contributions to healthcare, but in return they would give the union 25% of the stock and $100 million.
6. The strike was from the Bakers union. It included only 2/3rds of the bakers.
7. To show solidarity the drivers honored the picket line and did not deliver the products.
8. You don't deliver products, you don't make money.
9. The company is going out of business, but most of the striking employees will get hired by the company that will buy them out.
10. Those who do not get hired by the buyers will be protected by the union. 

11. Hostess’ creditors accused the company in April of manipulating executive salaries with the aim of getting around bankruptcy compensation rules, the Wall Street Journal reported at the time. In response, Rayburn announced he would cut his pay and that of other executives to $1 until Dec. 31 or whenever Hostess came out of bankruptcy.


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