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No More Twinkies?


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#101 Java Time

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Posted 19 November 2012 - 03:56 PM

Or, maybe this company was "Bained" and the assets and profits were kremed from the top with the workers taking previous a pay cut to bail it out and not wanting to do it again. Did ya ever think of that?


No...and using a fancy political tagline does't make me change my stance....

18,500 enroute to unemployment...bad management isn't an excuse to misrepresent facts to the workers by the union...who by the way still have their jobs





#102 Joker

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Posted 19 November 2012 - 06:53 PM

Twinkies Defense is Private Equity's Pension Offense: Street Whispers


The liquidation filing of Hostess Brands -- the maker of consumer fattening favorites such as Ho Ho's and Twinkies - also means that Americans may soon gorge themselves on the company's massive pension liabilities.


Hostess' liquidation -- just like the recent bankruptcies of well known companies like Friendly Ice Cream and Eddie Bauer -- raises the prospect that sophisticated private equity and distressed debt hedge fund investors are using courts to cast off unwanted pension obligations on U.S. taxpayers and put a losing investment back on the track.

Consider that also on Friday, the Pension Benefit Guaranty Corporation disclosed that its U.S. pension plan insurance deficit grew to a record $34 billion this year, the biggest shortfall in the federal agency's history. PBGC guarantees employee pension plans after a company goes belly up, securing the retirement of roughly 43 million U.S. workers.

While PBGC doesn't take government money directly - it's funded by way of insurance premiums and portfolio returns - the agency's head said on Friday that a growing deficit raises the prospect of taxpayer support.

In a statement released with the agency's bleak outlook, PBGC Director Joshua Gotbaum attributed the plan's shortfall on an inability to set premiums for member companies and noted that the agency's deficit may put taxpayers at risk for the first time in its 38-year history.

"PBGC may face for the first time the need for taxpayer funds," Gotbaum said on Friday.

So what is the tie-in between Hostess Brands liquidation and PBGC's dire financial outlook?

Were a bankruptcy judge to approve Hostess's plans, it's likely that most of the near 18,500 Hostess workers will lose their job and pensions with the company.


More
http://www.thestreet...t-whispers.html

#103 PeaceFrog

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Posted 19 November 2012 - 09:37 PM

you all act like some big official in the union had a wild hare up his or her ass and made a willy-nilly decision to strike and forced everyone to lose their jobs. That's not how unions work. The membership must have wanted it.

These people went on strike for a reason. They were fed up with being treated unfairly. Going on strike is never an easy decision, and we should all be grateful that we have the privilege to do this when we have to.

It may not have worked out as planned for Hostess, but maybe Little Debbie will treat her workers better from now on.

#104 Java Time

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Posted 19 November 2012 - 09:40 PM

you all act like some big official in the union had a wild hare up his or her ass and made a willy-nilly decision to strike and forced everyone to lose their jobs. That's not how unions work. The membership must have wanted it.

These people went on strike for a reason. They were fed up with being treated unfairly. Going on strike is never an easy decision, and we should all be grateful that we have the privilege to do this when we have to.


do union members have a choice to go on strike or not...do they have the ability to say "you know what an 8% pay cut is better than having no job at all...I think I'll stay in work while the rest of you go on strike"?

#105 PeaceFrog

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Posted 19 November 2012 - 09:43 PM

Here in New York State, strikes are voluntary and the union can't make anyone do it. I'm not even sure where this happened, but the laws vary by state.

#106 Lemireacle

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Posted 19 November 2012 - 09:43 PM

do union members have a choice to go on strike or not...do they have the ability to say "you know what an 8% pay cut is better than having no job at all...I think I'll stay in work while the rest of you go on strike"?


I can't speak for all unions, but an issue like that is usually put to a vote by the union members.

#107 Java Time

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Posted 19 November 2012 - 09:54 PM

I was in a union back in the 80's...and we could opt out of a strike...but we'd risk losing our job according to the rep.


I know it seems like I'm taking the corporation's side on this but when a company is going through a restructuring, and knowing what happens, I just thought it not wise to strike...more of a devil's advocate stance.
I'm really thinking of those folks who now need tofind a job. Sometimes sucking it up now and fight later can work...

#108 MeOmYo

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Posted 19 November 2012 - 09:58 PM

anyone can go on strike or not go on strike without a union. yeah, power in numbers, I get it.

#109 Joker

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Posted 19 November 2012 - 10:13 PM

Hostess to Hold Talks With Bakers Union on Reasons for Strike



Hostess Brands Inc. will hold talks with its bakery workers’ union tomorrow to explore the reasons for a strike that the maker of Twinkies and Wonder bread said will force it to liquidate.


U.S Bankruptcy Judge Robert Drain said today at a hearing in White Plains, New York, that there are “serious questions as to the logic behind the decision to strike.” He urged the company and the union to enter mediation, citing the potential loss of more than 18,000 jobs.


“I believe that mediation really only works if the parties are willing to do it but I’m also strongly suggesting that the parties should be willing to do it,” Drain told lawyers for the company and its bakers’ union. “To me not to have gone through that step leaves a huge question mark over this case which I think will only be answered in litigation.”


Hostess hasn’t spoken with the union since August, a company lawyer said. Hostess is seeking permission from Drain to pay bonuses to key managers while closing operations that will leave most of its 18,500 workers unemployed as its begins a liquidation that may attract bids from private-equity firms and rivals.


Hostess said Nov. 16 that it would shut down, claiming that a weeklong strike by the bakers’ union forced liquidation. The union blamed management’s concession demands, while some employees blamed both sides. Strikers were still outside the company’s facilities today, Hostess’s lawyers said.


Monetary Claims


Drain said courts have established that the law doesn’t prevent monetary claims against a union for a strike that’s unlawful or improper.


Discovery may bring out what was said to Hostess’s competitors and prospective buyers, he said.


“A decision in essence to accept the termination of 6,000 jobs and what appears to me the inevitable reduction of recoveries at least raises issues as to why it was made, particularly when there was no attempt made to contest the terms that were imposed,” Drain said.


“I’m giving the union as well as the debtors and their lenders a last chance to try and work those issues out in private,” the judge said. “If they don’t take it, it’s not as if they won’t be worked out. They will be worked out but they will be worked out in public and I believe ultimately in a expensive way.”



Read more: http://www.sfgate.co...p#ixzz2Ci2BFPSM

#110 hoagie

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Posted 19 November 2012 - 10:15 PM

just heard a judge decided to take this issue to arbitration. Still hope for a resolution apparently...



Mike Elgan
3:25 PM (edited) - Public




Hostess, union agree to arbitration. Twinkie may be saved.

Junk food maker Hostess and the union that it claims shut down the company have agreed to arbitration.

That's good news and bad news.

The good news is that about 18,000 jobs may be saved.

The bad news is that Hostess may be saved. People will still be able to buy chemical bombs made out of rubbery, spongy material.

http://blogs.wsj.com...o-save-hostess/


Posted Image


More photos from Mike Elgan








#111 PeaceFrog

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Posted 19 November 2012 - 10:15 PM

when you get in a union you sign a contract giving away certain rights (such as your right to work for less money). In return, you get certain benefits. However, in different states there are different laws about how much power the unions actually have. If the Davis-Bacon Act were overturned, the unions would have basically no power at all because right now they collectively bargain for wages on government jobs. Davis-Bacon is what allows them to do that, and that's basically the last thing unions have going for them.

so, you people are crying about the unions taking away your right to work for less money. That sounds like a race to the bottom.

#112 Java Time

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Posted 19 November 2012 - 10:18 PM

I'd say NO to paying bonuses...I thought they increased their salaries to forgoe bonuses in the event of liquidation...and as some employees have said...blame both sides!

#113 Java Time

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Posted 19 November 2012 - 10:20 PM

let's hope they try and work it out...cut out managements' bonuses and start from there.

#114 Joker

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Posted 19 November 2012 - 10:25 PM

Sounds like that baker's union has some incompetent people running the show for them

#115 PeaceFrog

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Posted 19 November 2012 - 10:27 PM



#116 Joker

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Posted 20 November 2012 - 10:34 PM

Looks like this guy doesn't even care enough to attend the mediation session.

Bakers Union President Not Optimistic on Hostess Mediation

The head of the baker’s union whose strike precipitated liquidation plans for Hostess Brands Inc. says he’s “not too optimistic” about the mediation session intended to give the baking company one last shot at survival.

In an interview Tuesday afternoon, Bakery, Confectionery, Tobacco Workers and Grain Millers International Union President Frank Hurt, who’s not attending the mediation being held in New York Tuesday afternoon, said he’s heard “not a word” about how the talks are going. But he doesn’t think a deal will be reached to head off the Twinkie maker’s liquidation because his members aren’t prepared to take the labor concessions Hostess says it needs to survive.



More

http://blogs.wsj.com...tess-mediation/



#117 Slarti

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Posted 20 November 2012 - 10:48 PM

I wonder what BAKD would have to say about this issue :lol:

#118 PeaceFrog

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Posted 21 November 2012 - 12:47 AM

Written by Richard Trumka for the Daily Kos

This is the new American story, but someone finally stood up and said, “Stop!”

Pundits should be applauding the Bakery Workers of Hostess Brands for standing up to Wall Street interests and standing for decent working standards and the middle class.

The truth is that the Bain-style vulture capitalists invested in Hostess to profit not by making quality products, but by bleeding the company of every dollar before discarding it.

They’re doing it because they can, because that’s what Wall Street speculators do when they get their hands into a company’s till.
And today, the millionaires are walking away, with an added twist. They’re blaming the bakers and others who faithfully made the iconic Twinkies and other Hostess goods for decades—not for untold riches but for a decent paycheck and good benefits.

Not even a week before Thanksgiving, not even two weeks after the American electorate rejected this winner-take-all-view of the world, more than 18,500 working people face the prospect of looking for work in a still-dismal economy.

This is a story America has heard too many times.

Wall Street investors first came onto the scene with Hostess about a decade ago, purchasing the company and then loading it with debt.
All the while, its executives talked of investments in new equipment, new research and new delivery trucks, but those improvements never materialized.

Instead, the executives planned to give themselves bonuses and demanded pay cuts and benefit cuts from the workers, who haven’t had a raise in eight years.

In 2011, Hostess earned profits of more than $2.5 billion but ended the year with a loss of $341 million as it struggled to pay the interest on $1 billion in debt. This year, the company sought bankruptcy protection, the second time in eight years.

Still, the CEO who brought on the latest bankruptcy got a raise while Hostess demanded that its workers accept a 30 percent pay and benefits cut.

The workers at Hostess want the company to survive and prosper. Of course they do. And they’ve proved their willingness to make sacrifices to enable Hostess to thrive. Just three years ago, the workers accepted wage and benefit cuts that saved the company a reported $110 million every year. Where did the money go?

It’s heart-breaking to think of each of those workers in cities and towns all across America who have seen their jobs vanish. But as painful as it is, it’s heartening to know these brave workers stood up against the greed and destruction of Wall Street.

It’s incredible.

The unified Bakery Workers rejected the last cruel deal from executives by a vote of 92 percent. They chose to raise their heads with pride, as well they should.

One way or another, working people in America have to stop this race to the bottom.

This Thanksgiving, I’ll be giving thanks to the Bakery Workers for taking a stand. Together, we will make America work for regular working people again.

#119 Joker

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Posted 21 November 2012 - 02:23 PM

One would have thought it would this was the work of Republicans but it appears this is a "Democrat Baining"


The Hostess Liquidation: A Curious Cast Of Characters As The Twinkie Tumbles





Perhaps one of the most interesting aspects of the just announced Hostess liquidation, one that will be largely debated and discussed in the media, or maybe not at all, is the curious cast of characters and the peculiar history of this particular bankruptcy. Some may not be aware that the company's Chapter 11 (or colloquially known as 22) bankruptcy filing this January, which today became a Chapter 7 liquidation, was the second one in the company's recent history, with Hostess, previously Interstate Bakeries, emerging from its previous protracted multi-year bankruptcy in 2009. What is curious is that its emergence had all the drama of a anti-Mitt Romney PAC funded thriller, with a PE firm, in this case Ripplewood holdings, injecting $130 million in order to obtain equity control of Hostess as it was emerging last time. There were also more hedge funds, investment banks, strategic buyers, politicians involved in this particular story than one can shake a deep fried numismatic value Twinkie at. More importantly, however, as America has been habituated following the last season of the reality TV show known as the presidential election, if Private Equity then "bad." Only this time there is a twist: because it wasn't really PE that was the pure evil in the Obama long-term campaign, it was associating PE with Republicans, and thus: with jobs outsourcing. And here comes the Hostess twist: because Tim Collins of Ripplewood, was a prominent Democrat, a position which allowed him to get involved in the first bankruptcy process in the first place, due to his proximity with the Teamsters' long-term heartthrob Dick Gephardt (whose consulting group just happens to also be an equity owner of Hostess). In other words, the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off since the narrative collapses when considering that it was a Democrat who rescued the firm, only to see it implode in a trainwreck that has resulted in the liquidation of a legendary brand, and 18,500 layoffs.
But it only gets better. Because the full cast of characters involved here is quite stunning, as David Kaplan summarized so well recently:

Lots more here
http://www.zerohedge...twinkie-tumbles




Posted Image

#120 Joker

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Posted 21 November 2012 - 02:32 PM

Doesn't look like they'll be saved


Hostess Fail to Reach Union Deal in Mediation


Hostess Brands Inc. failed to reach a deal with union representatives during a mediation session aimed at preventing the Twinkie maker from liquidating and eliminating more than 18,000 jobs.

“A mediation today with the Bakery, Confectionary, Tobacco and Grain Millers Union was unsuccessful,” Hostess said in a statement. The company said it won’t have further comment until a court hearing set for tomorrow.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York, yesterday adjourned a hearing where Hostess planned to seek permission to shut down, and sent the parties off for a last-ditch effort to negotiate terms that might keep the floundering company afloat.

“I’m giving the union as well as the debtors and their lenders a last chance to try and work those issues out in private,” Drain said at yesterday’s hearing. He cited “serious questions as to the logic behind the decision” by the bakers’ union to go on strike earlier this month.U.S. Bankruptcy Judge Robert Drain in White Plains, New York, yesterday adjourned a hearing where Hostess planned to seek permission to shut down, and sent the parties off for a last-ditch effort to negotiate terms that might keep the floundering company afloat.

Corrina Christensen, a spokeswoman for the bakers union, didn’t immediately return a call seeking comment on the failed mediation after regular business hours.

http://www.bloomberg...-mediation.html

#121 hoagie

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Posted 21 November 2012 - 02:33 PM

Why are bakers lumped into a union with tabacco workers? Wtf?!

#122 PeaceFrog

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Posted 21 November 2012 - 03:19 PM

who every claimed that Democrats can't do any wrong? They need to be watched, too. Additionally, a label is just a label. Look at Bloomberg and Lieberman... they can't make up their mind what they are. What about Ron Paul? He's a Republitarian? right?

I think you're the one that can't let go of the Republican party, so you constantly criticize Democrats in an unbalanced way.

Don't worry... Republicans are in the process of transformation. Hopefully you'll be able to blow your Republican horn next election cycle and people won't laugh at you for it.

and thanks for politicizing the conversation. Now it will be moved to P & R.

#123 Joker

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Posted 21 November 2012 - 04:02 PM

who every claimed that Democrats can't do any wrong? They need to be watched, too. Additionally, a label is just a label. Look at Bloomberg and Lieberman... they can't make up their mind what they are. What about Ron Paul? He's a Republitarian? right?

I think you're the one that can't let go of the Republican party, so you constantly criticize Democrats in an unbalanced way.

Don't worry... Republicans are in the process of transformation. Hopefully you'll be able to blow your Republican horn next election cycle and people won't laugh at you for it.

and thanks for politicizing the conversation. Now it will be moved to P & R.

:lol:

Who was it that politicized things by posting something from the Anti.Republican.Crusaders way back in post #66?

Who was it that tried to link it to a Romney/Bain type action?

Seems to be it was first "politicized" by a few people on the left rather than by me.

But hey, most of us here realize you can't be trusted to tell the truth.

DingDong'd

#124 PeaceFrog

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Posted 21 November 2012 - 04:46 PM

you're quite a touch-hole. The graphic I posted is the same one that's on the Baker's union website. It was informational and non-partisan.

Any articles I posted were also from that same source.

You're the one who is now pointing out individual politicians whom you'd like to blame.

And seriously, wake up old guy. You're the one that has an opposing viewpoint on just about everything. Who trusts someone like that?

#125 PeaceFrog

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Posted 21 November 2012 - 04:51 PM

oh my biographer strikes again... post #66 said "anti-republican" at the bottom and his piles must have gotten inflamed.

besides that one line that was giving credit to the source, what about that post was political or anti-republican?

#126 hoagie

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Posted 21 November 2012 - 05:12 PM

And seriously, wake up old guy. You're the one that has an opposing viewpoint on just about everything. Who trusts someone like that?


:lol: prolly still pissed the Dodgers left Brooklyn.



#127 PeaceFrog

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Posted 21 November 2012 - 05:18 PM

in his own imagination he must think he's trusted and well respected by everyone.

people nowadays think for themselves, Joke. They don't just passively adopt whatever values their family or religion imposes upon them any more. It doesn't matter where an idea comes from. If it makes sense, we'll go with it. If not, then we won't.

#128 hoagie

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Posted 21 November 2012 - 05:20 PM

in his own imagination he must think he's trusted and well respected by everyone.

people nowadays think for themselves, Joke. They don't just passively adopt whatever values their family or religion imposes upon them any more. It doesn't matter where an idea comes from. If it makes sense, we'll go with it. If not, then we won't.


Except if the idea is from Satan. Ignore those.

#129 Joker

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Posted 21 November 2012 - 05:22 PM

Hostess Bankruptcy Backstory: The AFL-CIO vs. SEIU Rivalry




The controversy over the impending shutdown of Hostess Brands — and who is to blame — has pitted two unions against each other. That isn’t particularly noteworthy, since different unions’ interest can diverge. What is noteworthy is the fact that the two unions in this standoff — the International Brotherhood of Teamsters and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) — are aligned with two different camps within organized labor that have had an uneasy relationship with each other: the Service Employees International Union (SEIU) and the AFL-CIO.

In fact, this could be seen as the latest round in a seven-year-old union civil war that began in July 2005, when SEIU, the Teamsters, and a few other unions left the AFL-CIO to form a new labor federation, called Change to Win. Then-SEIU President Andy Stern led the walkout, claiming that the AFL-CIO and its member unions were devoting too much money to politics at the expense of organizing — an odd charge, given that SEIU was one of the nation’s top 10 donors this past election cycle; the Teamsters weren’t stingy, either.

Whatever the real reason for the 2005 split, it’s led to some major drama, including the acrimonious breakup of the UNITE-HERE, which had been the result of the 2004 merger of a textile union (Union of Needletrades, Industrial & Textile Employees) and a hospitality union (Hotel Employees and Restaurant Employees). In 2009, UNITE-HERE, a Change to Win member union, broke back up into its former constituent parts, largely as a result of infighting between their two presidents, who headed UNITE-HERE in a dual leadership arrangement that proved untenable.

UNITE’s former president, Bruce Raynor, led a breakaway faction out of UNITE-HERE and affiliated with SEIU. UNITE-HERE’s president, John Wilhelm (who headed HERE before the merger) then took his union back into the AFL-CIO’s fold. For SEIU, the acquisition of Raynor’s breakaway union proved very profitable, as it acquired control of Amalgamated Bank, the nation’s only owned bank. For Raynor, the new arrangement didn’t work out so well. He was pushed out of SEIU’s leadership over $2,316.00 in allegedly misreported meal expenses.

The Teamsters have strongly criticized the Bakers union’s recent actions, suggesting that BCTGM members had been misinformed and that, “The BCTGM leaders are putting Teamster members in a horrible position – asking them to support a strike that will put them out of a job when they haven’t even asked all their members to go on strike.” The Bakers union, meanwhile, refused to talk to the press following the news of the company’s shutdown, though the AFL-CIO came to its defense.

The latest round in this bout is just beginning. Get the popcorn.

For more on labor, see CEI’ s labor policy website, workplacechoice.org.


http://www.openmarke...s-seiu-rivalry/

#130 PeaceFrog

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Posted 21 November 2012 - 05:39 PM

Joke kind of reminds me of a dog chasing its own tail.

#131 unbroken_chain

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Posted 21 November 2012 - 07:19 PM

arguing about cupcakes is like pissing in the wind, cept my pants remain (mostly) dry.

#132 Joker

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Posted 21 November 2012 - 07:31 PM

arguing about cupcakes is like pissing in the wind, cept my pants remain (mostly) cream filled.


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