Union leader Richard Trumka has resurrected the Bain attack line to explain the death of the Twinkie.
Twinkie-manufacturer Hostess blamed a union strike for the company's closure. But AFL-CIO President Trumka says that's nonsense, and that "crony capitalism and consistently poor management drove Hostess into the ground."
"What's happening with Hostess Brands is a microcosm of what's wrong with America, as Bain-style Wall Street vultures make themselves rich by making America poor," Trumka said in a statement reported by Politico.
Trumka painted Twinkie's employees as the victims of the company - especially since the company's closure will mean 18,550 job losses. Hostess has called itself the victim of overly-demanding workers, who made the company unprofitable. The company previously filed for bankruptcy in 2009 and again in January 2012.
The Sacramento Bee quotes the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union on alleged pay raises for Hostess execs during earlier bankruptcy filings, including a supposedly tripled salary for former CEO Brian Driscoll: "As the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256."
Via Politico and the Sacramento Bee.