Hostess Steals From Employee Pensions. Blames Pensions for Company’s Demise.

Speaking of unhinged. I almost came unhinged reading this.

Hostess Brands acknowledged for the first time in a news report Monday that the company diverted workers’ pension money for other company uses.

The bankrupt baker told The Wall Street Journal that money taken out of workers’ paychecks, intended for their retirement funds, was used for company operations instead. Hostess, which was under different management at the time the diversions began in August 2011, said it does not know how much money it took.

The hubris of Hostess management is astonishing.

Hostess executives have spent the last several weeks crusading for the right to cut employee pensions while also divvying up retention bonuses for company executives who will oversee the company’s liquidation.

Now it turns out some of those pensions have already been diverted to cover other costs.

Even more dumbfounding is the fact that company management dipped into employee pensions to cover costs and still did not manage to save the company from bankruptcy. And they expect us to believe employee benefits are blame for the company’s demise? How can that be the case if you’ve already stolen from them?

When searching for the words to describe the darkly comical nature of this situation, the only words that come to mind are a very somber utterance of “holy shit.” The gross mismanagement, ineptness, and arrogance is truly breathtaking. And they tell me business is always run better than government.

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  • Victor_the_Crab

    Death is too lenient for what these pondscum deserve.

    • muselet

      Hey, that’s offensive. Pond scum serves a useful function.

      –alopecia

  • JWheels

    isn’t it illegal for companies to use pension monies like this?

    • agrazingmoose

      Yes. It is a violation of federal tax law.

      • http://drangedinaz.wordpress.com/ IrishGrrrl

        I soooooooo want to see the perp walk for these jerks

        • Victor_the_Crab

          I soooooooo want to see them thrown into the general population of a maximum security prison and have them torn into.

          • http://drangedinaz.wordpress.com/ IrishGrrrl

            Well yeah that too!

  • rikyrah

    sociopaths

  • trgahan

    You would have thought that the events at Worldcom and Enron would negate any serious arguement that private sector is “better run” or “more moral” because leadership must think of the good of good of the company. But no. Our business sector (and GOP reps/propoganda mouth-pieces) are infested with people who see our economy as a get rich quick scheme and not something that creates anything.

    They simply don’t give a shit how their actions effect a company and as long as it enriches them personally, its a “good decision.” There is always another business who will hire them for their “expertise.”

    • D_C_Wilson

      Don’t be ridiculous.

      No one is more efficient at robbing people blind than our private sector.

  • ElayneB

    Oh FFS. Look at the years in question, figure out how much was taken out of the paychecks that SHOULD have been put into the pension fund, look at what ACTUALLY was put into the fund and figure out “how much money it took”. I mean c’mon, I have an MBA but this is really basic arithmetic.

  • bphoon

    (sigh…) Seems to me that this is simply another example of how detached from the rest of the world the “senior management” class is. That a failing company–in fact a company that is preparing to liquidate–pays its executives bonuses is immoral, it’s irresponsible, it should be a federal crime in its own right. And to think they stole from their employees’ pension fund. They should be prosecuted for grand larceny.

    Unconscionable.

    • MrDHalen

      It’s one thing to be a thief, but the disgusting part is the regular workers who support these “business leaders” in their ever increasing vaulted attempts to loot company profits for themselves. They blame the guy standing next to them for $hiting on them when the its the guy above them doing it. It’s CRAZY!!!

    • ninjaf

      Not to defend the people getting these bonuses as the company fails, but they we re not the ones doing the thieving from the pensions. It was the previous management.

      Doesn’t make it any better, I know, but better to have the facts straight if you get in a discussion with someone about it. :)

      • http://drangedinaz.wordpress.com/ IrishGrrrl

        The “new” management are still scum….they saw the problem and thought not of saving the company but “I’d better get mine before the poop hits the fan”. Why take the bonus at that point? It was insult to injury.

        • ninjaf

          You would think that there would be some feelings of guilt. I know I would have them. But I have a conscience. ;)

          I only pointed out that it was the previous managers because if you get one thing wrong in your facts, even inadvertently, it weakens your overall argument with someone who says the union workers are getting what they deserve because THEY were too greedy. (As if!)

          • http://drangedinaz.wordpress.com/ IrishGrrrl

            I hear ya and I agree.