Twinkies, Unions & CEO Pay

Nonstop talk the entire day about Twinkies and the unions. Here are a couple of gems. Will source and format them after a few days.

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You can train the CEO to work the factory line but you can't train the line worker to be a CEO. 

Why is it that many people don't see a problem with paying a sports athlete tens of millions of dollars per season but are unwilling to pay one-tenth of that for a top-quality CEO? Just because the average person can't see what the job entails doesn't mean that anybody can do it.

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 Supply and demand.

A typical factory union line worker has little or no special skills that anybody off the street could not learn in minutes. The supply of low-skilled labor is enormous. If it weren't for the unions keeping the wages and benefits of the workers artificially inflated beyond their worth, they would not make as much. 

CEOs, on the other hand, are few and far between. Good ones who can turn around the fortunes of a company are even rarer.

For example, at Ford, the year before they hired Mulally at $40 million, they had lost some $10 billion or so. He's turned that around, changed the management style and mindset and they've now earned a profit, even in this economy. The high salary of such a CEO is more than worth it.

Such a CEO keeps those overpaid low-skill workers employed. So, instead of them whining, they should be grateful.

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The $30.00 an hour is only the tip of the iceberg. You must also include all of the other benefits as well, like pensions, insurance and other perks. If you add all of that up you would see that the $30.00-an-hour worker is really making about $60.00 an hour. 

I don't have a problem with someone making a good wage but let's be honest, Do you really feel screwing in a headlight -- a job that needs no special training, a fourth grader could do the job -- is really worth $30.00 or $60.00 an hour? Apparently you didn't see that the 2 of the big 3 was ready to collapse because of over all legacy costs and poor quality? 

Do you think it is fair that a union worker gets paid more money than someone with a degree? Someone who's gone into debt to get a better education and handle more responsibility? Really do you think that's fair? 

Now for your CEO part of your question. Of course I feel CEOs are paid too much as well, but I am not willing to let our government dictate what the CEO or the union worker can make. The bottom line is, in this world nothing is fair. If we wanted it to be a little more fair we would push Congress to put import taxes on commodities coming into the US and repeal NAFTA and other bills like that, so once again the US could compete on a broader scale. This isn't a class warfare deal, this is a big US economic deal. 

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Can the CEO do the factory worker's job? Maybe. Can the factory worker do the CEO's job? Hell no. How long would the company last if Mr. Worker were put in charge? About 10 minutes. I don't think anyone is worth 20 million, but if the shareholders and board think the guy is worth it, the company is doing well, Who the hell am I to say otherwise?

I sure as hell don't think baseball, basketball, and football players are worth the obscene amounts of money they make, but the market allows it.

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That CEO is directly responsible for thousands of people and for the success of a multi-million dollar corporation. I have no problem with CEO pay. However I do have a problem with the high school drop out union worker that makes $30 per hour to hold the handle of a machine that tightens bolts AND is allowed to retire after 20 years with 80% pay and full benefits for life.

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Maybe I could see the factory worker be worth $30 an hour if they have some sort of skilled position, but the truth is that there is no reason to get an education if you can get paid this amount of money without even a high school diploma. 

The other problem with unions is how corrupt they have become. They slow down how fast they work and hire their friends and family onto the line when they don't even need any more people.

 As for the CEO they are either the person who created the company or someone who worked their way up there. They played the game and they are now getting rewarded for it. I do agree with you that their pay can be high, but there is generally high turnover in this position too. There are also very few people who have the skills to be a CEO. It is kind of like the Presidency. Anyone could hold the position if they made it there, but very few would actually be good at it.

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The CEO is developing the environment that creates the revenue so they can afford to pay him 20 million. By the way, what business is it of yours? Do you have a problem with advancement or free enterprise? Should we limit how far you can succeed in life? If that is the way you think, you would be best to leave this country.

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I was a registered nurse for most of my life and union workers made more per hour than I did. 

I have a degree and was required to carry malpractice insurance, made daily decisions about the right medication, the patients vital signs. when to call the doctor. and a myriad of other decisions. 

Union workers do the same task day after day. Do you really think you are worth more than a nurse?

I am sick of union workers. They have destroyed the manufacturing base of this country because of their GREED. 

Do you really think $30/hour is a resonable wage for putting things together? 

Because of UNIONS we have no jobs here in the USA anymore. 

What good is a $30/hr manufacturing job if there is no work?

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 The labor costs at Hostess were killing it... $48K for a guy to load a truck with bread - you could get GOOD quality Mexican labor half that. We promote open borders with Mexico for the cheap labor then you lefties get all pissed off when Obama's policies get 18,000 union members fired.

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Look, they're both worth whatever anyone is willing to pay them in the free market. "Deserve" has nothing to do with anything. 

But pointing out that Unions can and do price themselves out of the market (just look at Detroit) isn't the same as "having a problem" with their earning that much. It's simply a reality check. 

Earn all you can. But also be aware that if others are willing to do your job for less, you could be out on the street.

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My Asian staff work 22-hour days for free without complaining.

My American staff work spottingly about 8 hours, get paid above market rate, demand to have their egos stroked constantly, don't see anything wrong with helping our competitors, undermine company policy, and then badmouth me and my hardworking Asians publicly because we take our work seriously.

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Why should Obama be paid more than about $50,000 a year?? He gets his rent, food and travel for free. So why should he make so much more than the average person? CEOs run large organizations that are profited oriented and their pay is voted upon by contracts and/or the Board of Directors and stockholders. What they make is really none of our business. What, do you think they should not be paid that much if their company is not successful? Based on that view, why are we paying Obama at all, or the Congress?? There is no one less successful than that group. You have to be pretty weak-minded to be led to hate people who are in business for what they make, but have no problem with a President who is a total failure and who lives like a King on the public dollar. I wish I could take Air Force One to New York for dinner and a movie. Or spend $12 million dollars taking my family and entourage to Hawaii for the holidays on private jets. The same people who lead you into thinking you should hate the CEOs of America are the same ones who don't want you to think about the other things I mentioned.

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CEO A is paid $5 million and while he is in control the company earns $15 million per year.
CEO B is paid $20 million and while he is in control the company earns $100 million per year.

Is CEO B overpaid?

Could the $30 per hour laborer have such an impact on profits?

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The unions almost bankrupted the automakers which were at the time paying $75 per hour in wages and benefits, compared to about $35 that Japanese auto companies were paying.

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An AMERICAN UNION painter makes $30.00/hr plus benefits.

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What kind of superpower can't make Twinkies? Maybe China will buy the recipe and we can pay down some of the national debt.  Don't by U.S. Bonds--Buy Twinkies!
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If President Obama saved GM and Ford, why can't he save Hostess Twinkies??
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Could Mitt Romney save Hostess?
Like him or not, if you have ever shopped at a Staples and/or Sports Authority, you have Mitt Romney and his Bain Capital buddies to thank. 
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Romney created jobs in Massachusetts during a general downturn in the U.S. economy.  
Business and military leadership is much more valuable than "political" leadership because it requires RESULTS.  
Any incompetent nobody can claim to be a "community organizer" or a politician.
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Bain created 78 successful companies and millions of jobs.
SCORE _____________
Romney  3,000,000
Obama               0
(Obama has been going around committing lies about creating 4 million jobs - what he doesn't tell you is he lost 6 million jobs.  So, he's in the hole at least  2 million jobs)
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A company is typically started to make a profit.  Someone wanting to start a restaurant is typically taking other people's money (as investment or loan) and employing it in a way to squeeze out higher profits.  That may mean cutting workers wages, or firing them.  It may be finding ways to reduce their tax burden, or even any contribution to unemployment benefits.  And sometimes, even with a great product and great people, circumstances may cause the company to "go belly-up" and any owner or employee not able to realize benefits (such as a pension).
A company like Bain is an alternative source of investment funds (to using a bank, for example).  And as a company, would seek to thrive just like a restaurant or other business. 

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State Fairs without deep-fried Twinkies are simply un-American!
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 Hostess Brands has 9 percent of the bread market and 20 percent of the cupcake and brownies market. Bimbo or Flower Foods could buy some of the bankrupt company's assets. 
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We all know the world is coming to an end according to the Mayans, but I didn't us to go out like this. Ending the world by running out of Twinkies and Zingers wasn't expected.
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Meanwhile, Wal-Mart Stores (WMT) workers have started to walk off the job this week in order to sabotage Black Friday.

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I used to be of the mindset that employers owed me, and in actuality, they do to some extent.  But ultimately an individuals happiness and opportunities stem from within.  If you don't like your salary, get a second job, go back to something that will help you attain your goal other than striking on a picket line.  While you may think you're letting your voice be heard, you could rather be spending time studying for a college entrance exam or doing something more beneficial for your long term success.