Just days before filing for bankruptcy in July, Milwaukee’s Briggs & Stratton Corp., at one time the largest producer of small engines in the world and employer to 11,000 union production workers making a solid, middle-class living, handed its top executives $5 million in bonuses, calling them “retention awards.”
In mid-September a federal bankruptcy court judge approved the sale of Briggs & Stratton’s assets to KPS Capital Partners, a private equity firm.
Like vultures picking a carcass clean, these bonuses in the run-up to bankruptcy have become an all-too-frequent way for corporate executives to gift themselves with one last, egregious payday before stiffing their workers and creditors.
The story of how Briggs got to this point is a morality tale about modern American industrial capitalism. Briggs embodies the anti-union race to the bottom characterized by contempt for hourly workers, mismanagement and misjudging markets.
Briggs managers lost the race, dragging their employees down with them.