Teamsters Local 117 handbilled the Hostess Brands, Inc. facility in downtown Seattle on Friday to condemn the financially-battered company for doling out huge salary increases to top executives while demanding concessions from workers just months before filing for bankruptcy.
Similar leafleting actions took place at Hostess facilities around the country.
"This is a case of corporate looting at its worst. Hostess has been asking workers for major concessions in bargaining. Now we learn that just before filing for bankruptcy, the company gave its top executives huge pay increases," said Local 117 President John Scearcy.
Last July, the maker of Twinkies and Ding Dongs increased the salary of eleven top executives by 80 percent shortly before filing for Chapter 11 bankruptcy in January. After accusations of corporate looting from workers and creditors, eight Hostess executives were forced to reduce their salaries this month.
Former CEO Brian Driscoll, who saw his compensation rise 300 percent, abruptly resigned from the company in March 2012. None of the executives have returned any money to the company.
Rank-and-file unionized workers at the Texas-based company have not received a significant pay increase for years. The company stopped making payments on the workers’ pension plan in August 2011 just one month after it gave the steep pay hikes to its executives.
View a PDF of the media advisory for this action.