Tell Hostess to Stop Blaming Unions For Company’s Bankruptcy

Target: Gregory F. Rayburn, CEO of Hostess

Goal: Revoke union-blaming statements made by Hostess

Hostess has recently filed for bankruptcy after 80 years of business. In the wake of bankruptcy proceedings, the company has declared unions responsible for their inability to continue business. The company has been in dispute with striking workers for some time.

Hostess stated it does not have “the financial resources to weather an extended nationwide strike.” However, the company has given its top management massive pay raises and bonuses this year. Hostess CEO Gregory F. Rayburn was given a 300% pay increase in 2012. Some 19 managers were given bonuses averaging 25-75% of their annual compensation. One executive’s pay increased from $375,000 to $656,256 this year.

This is utter hypocrisy. A company that declares itself to be broke to its workers while ensuring big payouts for the upper echelon of its business has no business blaming unions for its inability to keep its business afloat. Unions are not responsible for the fiscal mismanagement of Hostess executives. Furthermore, the doubling of some managerial salaries in a time when workers struggle to ensure themselves a wage they can live off of is obscene.

Statements blaming unions for the failures of Hostess management are not only disinforming, they are also dangerous insofar as they reinforce anti-union rhetoric in the public consciousness. Hostess management must be held accountable for their statements. Tell Hostess to revoke their union-blaming statement and to take responsibility for the pending bankruptcy of their company.


Dear Gregory F. Rayburn,

I am writing this letter to express my dismay at your company’s fallacious blaming of unions for the current bankruptcy Hostess faces.

Your company has claimed that it does not have the “financial resources” to endure an “extended nationwide strike.” This is in spite of the fact that your CEO’s pay was increased by 300% this year and that a number of top managers were given massive pay raises.

One such pay raise went from $500,000 to $900,000. On top of that, 19 managers this year got bonuses in the range of 25-75% of their annual compensation. It’s curious that a company unable to operate during a prolonged employee strike has no problem with enormous payouts to its executives.

Hostess clearly has a problem organizing its priorities. Otherwise, your company would have come to a compromise with your striking workers and would have eschewed the executive raises and bonuses in the interest of keeping Hostess solvent as a business. Your failure to do so lies on you and your management team, not your workers who ask only for dignity and a living wage.

Unions do not deserve to be vilified by the media on account of  your company’s statements. Please revoke those statements that blamed striking workers for Hostess’ bankruptcy immediately.


[Your Name Here]

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