Arbitrage Conspirator

Sara Lee: Management Succumbs to Analyst Criticism

I think Sara Lee over pays their Drivers. Do you know how much Sara Lee pays their drivers in wages and the legacy cost to the teamsters? On the Central California coast some of them make $85k per year. That is not counting the add in's for their pension of $5k per month and medical they will receive during retirement. That is crazy when most are using a 401k plan to have to pay this money and the actuarial assumptions and models are now blown with Treasuries now yielding zero for the 4wk and negative in frenzied trading. This means that Sara Lee will have to pay up to fund the pensions that were assumed that bonds and stocks would yield 7-8 per annum. I really am disgusted at the wages this jokers make. Unless Sara Lee gets their cost under control they will end up like International Bakeries that had to go on the pink sheets and had problems and sold off many of their key labels. Sara Lee needs to outsource the bread drivers or cut their wages in half. A long haul trucker makes half the wages of the loafers! Sara Lee wake up and smell your coffee management and understand more cuts are needed. The pension and defined benifit plan you pay is going to cost you are fortune. Learn from GM's mishaps and mistakes. I hope the best for Sara Lee but until I see meaningful cost cutting and a new pay scale for even the current drivers I see us going down to $5 a share. The dividend will end up being reduced to pay the wages.


Just My Humble Opinion