EXECS GET BONUSES, WORKERS GET COAL IN STOCKINGS

On Thursday a federal bankruptcy judge approved liquidation plans for Hostess, the maker of Wonder Bread, Twinkies, Ding Dongs and Ho Hos.  The company's demise came after years of management turmoil, with workers saying the company failed to invest in updating its products. In January, Hostess filed for its second Chapter 11 bankruptcy in less than a decade, citing steep costs associated with its unionized workforce. Hostess stopped contributing to its union pension plans more than a year ago.  Hostess was given legal protection to fire 15,000 workers, but will keep about 3,200 workers to wind down operations, including 237 corporate executives.  Although Hostess sales have been declining over the years, they still come in at between $2.3 billion and $2.4 billion a year.  Hostess said in court that they are in talks with 110 potential buyers for its brands, which includes at least five national retailers.

Once again workers are blamed for corporate mismanagement.  Not only is this the second bankruptcy plan for Hostess, the executives stick it to the workers again.  The current plan includes bonuses to 19 Hostess executives of upwards of $1.8 million.  Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation. The compensation is in addition to their regular pay.  The bonuses do not include pay for CEO Gregory Rayburn, who is being paid $125,000 a month.

In 2005 the union made contract concessions that would save the company $150 million a year and the company emerged from bankruptcy.  In 2011 Hostess told employees that their contribution to their pension plan would be borrowed to make the company profitable again, which totaled $50 million that year.  The bankruptcy reorganization judge ruled that this was a debt the company couldn’t repay and Hostess refused to negotiate employee contracts outside of the court.  The contract that was approved by the court cut wages by 27% over 5 years, allowed Hostess to keep the money they had “borrowed” from the pension funds, doubled insurance premiums while lowering the coverage and withdrew all pensions from that point on. 

This won’t be a merry Christmas for the fired workers.  And while there is enough blame to go around, the executives of Hostess will have a merry Christmas with high salaries and bonuses.  It is certainly disproportionate that these executives will be rewarded for failure and the workers will end up with coal in their stockings.  Just one day more... 

ENOUGH GLOOM AND DOOM ALREADY

A record 247 million shoppers over the four-day Thanksgiving weekend spent an average of $423, up from $398 last year, up 9.2 percent from last year.  Total spending over the four-day weekend totaled $59.1 billion, up 12.8 percent from 2011.

Another Cyber Monday is in the books setting a record for the biggest online shopping day ever, ringing up about $1.5 billion in sales, a substantial increase of 30.3%.

The shoppers were out in force and it sure seems like the “recession” is over, or at least receding.  Over the past year, when we left the farm for the big city (Lincoln or Omaha) for entertainment, everywhere we went was crowded.  Theaters, restaurants, malls - all crowded.  It didn’t matter what day it was, people were out spending money.  It certainly makes me wonder what it would have been like if there wasn’t a “recession.”  We wouldn’t have been able to even get in these businesses.

Yes, I’m being satirical, but I am also annoyed by all the nay-sayers casting their gloom and doom.  During the real recession, Roosevelt said, “we have nothing to fear, but fear itself.”  Well, it’s about time to stop listening to the fear mongers and call this recession a dead dog.  Just one day more.

THE ROLLING STONES

50 YEARS!

WHAT ARE FRIENDS FOR

Here on the farm we have several tree lines which were planted in the 30’s by the CCC (Civilian Conservation Corps).  When we moved here we spent some weeks trimming and picking up a lot of branches.  Because of the age of the trees picking up branches after a wind storm is common.  But, that chore is minimal compared to the benefit of having all the trees.

There are occasions when some trees are so far gone, or in the way, that they need to come down.  This summer I commented to a couple of my friends (two bachelor brothers) that one tree was in that category and I would have to call the tree guy I know to take it down.  Unfortunately, even though he is reasonable in what he charges, the tree guy takes a long, long time to show up.  After a few beers my friends saw it as a challenge and said,  “heck, we can cut it down next time we come over.”  Several weeks later when they were here they decided to go about taking down the tree. 

This tree has a extensive root system and after digging and sawing at the roots my friends decided it was time to hook up a chain hoist to pull the stump out.  I told them that wasn’t going to happen, but that was just like throwing down the gauntlet to them.  It didn’t happen.  So, after more digging and sawing they tried again.  It didn’t happen again.  I told them I would call the tree guy to have him take out the stump and they gave me that “you’ve got to be kidding!” look with instructions that they would come back another day and get that bugger out.

This past weekend we were over to their farm visiting and they commented that when they come over during the holiday break they are going to get that stump out.  I retorted that I should just call the tree guy and have him take it out.  They gave me that “what, are you nuts?” look and said not to waste my money.  So, we’ll see what happens when they stop by for a few beers this weekend.

Sometimes some people see something like this tree as a challenge, no matter what.  I see it as a good way to get hurt or a job beyond my abilities.  My two friends don’t think the same as me when it comes to a job like this.  But, they are sure good beer drinking buddies.  Just one day more.

JFK

Remembering November 22, 1963 - 49 years ago today.  A dark day in our history.

POST ELECTION BUTTHEADS

In a previous post I commented about businesses that threatened employees with their jobs if Obama was re-elected.  Without regard to what impact the election may have on their businesses, if any, some owners have  followed through on their threats.

Robert Murray, chairman and CEO of Murray Energy, read a prayer to staff members the Wednesday after Obama’s re-election. “Lord, please forgive me and anyone with me in Murray Energy Corp. for the decisions that we are now forced to make to preserve the very existence of any of the enterprises that you have helped us build.”  Murray then announced layoffs, including 54 people at American Coal, a subsidiary company, and 102 at Utah American Energy. Murray said that Obama’s “war on coal” was to blame, even though analysts have stated that the low-cost of natural gas coupled with the rise in costs of coal production is the true culprit.  According to Murray Energy’s website, the company is the largest privately owned coal mining company, with close to 3,000 employees.

John Schnatter, the CEO of Papa John’s, says that he’d reduce workers’ hours in order to avoid paying for their health insurance. Before the election Schnatter told shareholders that Obamacare would make the cost of Papa John’s pizza increase anywhere between 11 and 14 cents.  He said that “cutting employees’ work hours is probably what’s going to happen. It's common sense.”  Papa John’s brought in over $454 million in gross income in 2011 from over $1.22 billion in sales. Schnatter estimates that implementing Obamacare will cost Papa John’s $5 to $8 million annually or less than 2% of their gross income on the high end.

Zane Tankel, CEO of  Applebee’s restaurants said “We’ve calculated it will cost some millions of dollars across our system. So what does that say—that says we won’t build more restaurants. We won’t hire more people.”  Tankel said he would also consider possible layoffs and cutting workers hours in order to avoid paying for their health insurance.  Many Applebee’s employees make under $7/hour, while Applebee’s brings in an estimated $85,639 per employee. They had $1.08 billion in retail sales in 2011 and $419 million in gross income. 

John Metz, the owner of 40 Denny’s franchise restaurants in Florida, plans to add a 5 percent surcharge to his customers’ checks to provide health care coverage to his employees.  Metz said he hopes to get more restaurant owners to add a 5 percent surcharge on customers' checks: “We’re trying to get more restaurant operators rallied around the concept of adding a 5 percent surcharge to their bill to cover the costs of Obamacare as opposed to raising prices.”  He has also said he will cut employees hours.

Jimmy John’s owner, Jimmy Liautaud said he will reduce workers' hours in order to avoid the Affordable Care Act's requirement to provide health coverage.  According to Liautaud, Jimmy John's franchise restaurants employ around 60,000 hourly workers.

He has publicly attacked government levies before. He attracted attention in 2011 after telling local media in Champaign, Ill., that he was upset about a state tax hike. He said that he had already moved his family to Florida and said he will move his company's licensing division to Florida.

Hardee's, a $1.3 billion/year company, estimates that to give all their employees healthcare would cost an additional $18 million a year. The money, CEO Andy Puzder says, will have to come from somewhere. And he is not referring to the $1.3 billion they rake in annually. Instead, it will mean, according to Puzder the loss of 175 potential new jobs.

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What is happening is what is known as a self fulfilling prophecy.  These businesses prophesied gloom and doom ahead of the elections and now are making it happen by following through on their threats to lay off workers.  They are also trying to sway public opinion by threats of raising prices on product.  They are acting out of spite, without any attempt at making it work and for that they are buttheads.  What’s the old saying about “cutting off one's nose to spite the face?”  Just one day more... 

IT'S ABOUT TIME

The most women ever in U.S. History will serve in Congress, with 20 in the Senate and 77 in the House, including the first openly gay person in the Senate, the first Asian-American woman in the Senate, and the first Hindu-American in Congress.  In the Senate, 11 women won their races, including five newcomers and six incumbents. Nine women who were not up for reelection this year will remain in the Senate.  In the House 18 newcomers were elected, joining 59 incumbents who were reelected. Of those in the House, a record total of 28 women are of color, including 13 African-American women, nine Latinos, and six Asian/Pacific Islander Americans.  New Hampshire also became the first state ever to have women in all of its top elected positions—a female governor, two female U.S. senators, and two women in the House. 

It’s about time.  As the majority in Congress, men have certainly made a mess of things.  Women are more likely to compromise and less likely to rush to war.  They will bring a much needed perspective to Congress and will bring common sense to the table when dealing with the budget.  As the demographics of the country have changed, the Congress has woefully lagged behind.  It is good that this trend is changing with more women and minorities in Congress.  I doubt there will be a woman president in my lifetime,  but one can only hope.  Just one day more...

END THE GRIDLOCK

The election is over.  It is time for Congress to put an end to the gridlock.  
Just one day more...

VOTING IS A RIGHT

In a previous post I commented on voter ID laws and how they are being used to impede voters. Two recent NBC news articles which impede voting and intimidate voters caught my attention.

1)  On Sunday, emergency lawsuits were filed to extend early voting after some voters were stuck in lines for up to six hours trying to meet Saturday’s deadline for early ballots. When the Miami Dade election office reopened to allow in-person absentee balloting, and then temporarily shut it down, frustrated voters started shouting, “Let Us Vote! Let Us Vote!”  It could be a preview of what happens Tuesday. 

2)  “True the Vote,” the Texas-based Tea Party inspired group, has launched an aggressive national effort to root out voter fraud, providing  training videos and  computer software (that contain data on property records and death indexes) to help volunteers identify ineligible voters who show up at the polls on Tuesday.  Voting rights groups say “True the Vote” and its affiliates threaten to intimidate legitimate voters.

In each of these cases local election officials are shirking their duty and abdicating their responsibilities.  

The right to vote should never be impeded because voters in line are turned away - period.  After all, they aren’t standing in line to buy tickets to a concert where they can be turned away when the tickets are sold out.  They are standing in line to vote.  If there aren’t enough people to staff the polling place they should get more.  If the hours aren’t long enough to accommodate voters in line, the hours should be extended on the spot.

It is also the responsibility of the election officials to watch for voter fraud (which, incidentally is uncommon).  Private groups with an agenda should not be allowed to police and intimidate voters.  To imply that they are doing a public service by watching for voter fraud is a ruse.  

Come on election officials, voting is a right.  It is your responsibility and DUTY to make sure voters have access to vote and are not intimidated.  Just one day more... 

LEAVE THE CLOCKS ALONE

Daylight saving time (DST) is the practice of advancing clocks seasonally so that evenings have more daylight and mornings have less. Clocks are adjusted forward one hour in the spring and backward in the fall.  The theory behind it is that more activities and commerce can take place during the evening hours when the clocks are manipulated to gain an extra hour of daylight. 

During the 1973 oil embargo, in an effort to conserve fuel, Congress enacted DST all year.  The program ran from January, 1974 to April, 1975.  The objective was to increase daylight hours in the evening, thereby saving fuel, reduced lighting and heating fuel costs.  It was also suppose to reduce crime and car accidents.  Following the experiment, the Department of Transportation (DOT) reported that any benefits were minimal and difficult to distinguish from seasonal variations and fluctuations in energy prices.  Congress asked the National Bureau of Standards (NBS) to evaluate the DOT report.  That report found no significant energy savings or differences in traffic fatalities. It did find evidence of increased fatalities among school-age children in the mornings.

Using the same energy savings argument, the Energy Policy Act of 2005 was enacted.  Daylight saving time was extended in the United States beginning in 2007. As of that year, DST began on the second Sunday of March and ended on the first Sunday of November. These changes result in a DST period that is four weeks longer than in previous years.

It seems to me that DST has outlived its usefulness.  In this day and age any activities or commerce that takes place in the evening will get along just fine when it gets dark on standard time.  Stumbling around in the dark one hour longer in the morning on DST is more of a hassle.  Here on the farm we are up by 5:00 in the morning.  In the summer it is nearly daylight.  In the fall and winter it is nearly daylight - that is until DST kicks in.  On standard time when it gets seasonally dark earlier in the evening we adapt.  We turn on some lights.  During DST when it is dark longer in the morning, we turn on some lights.  No savings there.  Manipulating the clocks twice a year just isn’t worth it anymore.  Just one day more...

RISING WATER

After Hurricanes Katrina and Sandy, is it time to consider (or reconsider) the choices of where our population is located?  Or, at the very least, where property is rebuilt?  And what about the cost to all taxpayers - FEMA, state and local governments?

It is no longer a theory that sea levels are rising.  Thermal expansion - the warming of the seas - and ice melt are considered factors in rising sea levels, which are expected to continue for years to come.  Climate change from human contributed global warming is the primary cause.  Coupled with rising seas and natural storms, such as Katrina and Sandy, coastlines and coastal communities are in jeopardy more so than ever before.

Hurricane Katrina was the costliest natural disaster, as well as one of the five deadliest hurricanes, in the history of the United States and may be surpassed by Hurricane Sandy in dollars.  Katrina battered the Gulf coast from central Florida to Texas, with most of the damage caused by the storm surge.  80% of of New Orleans was flooded and towns along the Mississippi were over 90% flooded.  Total property damage resulting from Katrina was estimated at $81 billion.

Estimates are still coming in, but Hurricane Sandy is estimated to cost about $20 billion in property damage.  Sandy disrupted power to 8 million homes and caused 70 percent of East Coast oil refineries to shut down.  New York City vehicle, train and air traffic was also shut down and the storm surge buried the city’s waterfront.  Some are now resurrecting discussions about a sea wall which has been considered.  Unfortunately, costs for such a sea barrier are estimated at $6 billion.

All of this destruction and cost has lead me to contemplate alternatives.  Why, for example, did they rebuild in the flood prone areas of New Orleans?  Are there plans to rebuild on the east coast shoreline as well?  While it is miniscule by comparison, a couple of towns in Nebraska faced with such necessities decided to just pick up the entire town and move.

In 1881 the spring thaw on the Missouri River flooded the town of Niobrara, Nebraska.  The flood of March 28, 1881 covered most of the town, so residents moved the entire town to a new site southwest of the old town.  Fast forward to 1950's and 1960's and silt from the Niobrara River accumulated, raising the ground water level in Niobrara.  The residents once again had a water problem.  They either had to put in a dike with a large pumping system or move.  They chose to move.  Site preparation for the new town began in 1973 and by 1977 the move of 420 residents (213 homes) was complete.  

The other Nebraska town which moved was Lemoyne.  In the 1930’s, the irrigation district proposed a dam on the North Platte River and the project went forward with the work being done by the Works Progress Administration (WPA).  Unfortunately, the town of Lemoyne was right on the spot where the resulting lake would be, placing it 50 feet under water.  So, the approximately 100 residents and structures were moved north up the valley.  In 1941 the lake was filled and became known as Lake McConaughy.  During recent droughts, former Lemoyne residents returned to the lake bed to find remnants of the town.

Obviously relocating New Orleans or parts of New York City would not be feasible.  But, I still wonder why rebuild in specific areas where they are destined for repeat flooding.  Heck, in Nebraska we just pick up the whole town and move.  Just one day more...