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“It’s what lawyers call betrayal without remedy,”

10 Dec

This is some “legalese” that I had never heard before.

Personally,…. I would call it stealing.

Bastards.

Hostess took workers’ pension money to fund itself

byLaura ClawsonFollow forDaily Kos Labor

Of all the outrages Hostess has committed against its workers, this may take the cake. In August, 2011, the company just stopped contributing to its workers’ pensions, and is now acknowledging that it instead used the money for operational expenses. The money that didn’t go into pension funds was money that the workers had bargained for and chosen to take as pension instead of wages. But that doesn’t mean there’s anything they can do about it:

The maneuver probably doesn’t violate federal law because the money Hostess failed to put into the pension didn’t come directly from employees, experts said.”It’s what lawyers call betrayal without remedy,” said James P. Baker, a partner at Baker & McKenzie LLP who specializes in employee benefits and isn’t involved in the Hostess case. “It’s sad, but that stuff does happen, unfortunately.”

 

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4 Comments

Posted by on December 10, 2012 in Economy

 

4 responses to ““It’s what lawyers call betrayal without remedy,”

  1. drugsandotherthings

    December 10, 2012 at 6:57 pm

    Unfortunately- it’s nothing new. And common enough that Ellen Schultz, an investigative reporter at the WSJ actually wrote a book on it last year “Retirement Heist”. IBM, BOA, GE, GM, among many, many others have done the same thing…

     
  2. h2dog

    December 10, 2012 at 7:11 pm

    What bothers me the most is the lack of awareness. (myself most definitely included)
    This sort of thing should be news. And not just on a liberal blog.
    But the headline we saw blasted all over was the old “union can’t agree with management,… the end of the Twinkie” crap.
    Disgusting lack of any kind of depth.

     
  3. toph

    December 11, 2012 at 12:06 pm

    It is why most pension systems are in straits … Companies don’t contribute as much as they should because it makes there profitability seem better since future pension liabilities don’t factor into earning statements and all that

     
    • h2dog

      December 11, 2012 at 4:40 pm

      I’ve missed this as a big issue/business as usual thing along the way somehow.
      I had no idea it had become a standard operating procedure.
      They really are bent on killing all worker’s rights.

       

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