43 replies to this topic

[Joker]

Hostess Brands Inc., the maker of iconic treats such as Twinkies and traditional pantry staple Wonder Bread, is shuttering its plants and liquidating its 82-year-old business.

A victim of changing consumer tastes, high commodity costs and, most importantly, strained labor relations, Hostess ultimately was brought to its knees by a national strike orchestrated by its second-largest union.

The work stoppage, launched Nov. 9 by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union to protest a fresh labor contract, affected about two-thirds of Hostess's 36 plants. The strike was making it impossible for the Irving, Tex., company to continue producing its baked goods, Chief Executive Gregory Rayburn said.

The CEO, a restructuring professional who ascended to the top of the company after its former leader abruptly resigned earlier this year, said the liquidation will take months but require few workers.

"We deeply regret the necessity of today's decision, but we don't have the financial resources to weather an extended nationwide strike," Mr. Rayburn said in a statement Friday morning. He said the company will "promptly" lay off most of its 18,500 employees and focus on "selling its assets to the highest bidders."

Hostess's remaining inventory—loaves of bread and plastic packages of cream-filled desserts—probably will be sold in bulk to a discounter or big-box store. The company will attempt to sell its plants and its brands, "everything and anything that we can," Mr. Rayburn said in an interview Thursday afternoon, before the company had announced it would shut down.

More
http://online.wsj.co...2560842670.html



A sad day indeed

[TakeAStepBack]

Strained labor relations is what did it.

http://xfinity.comca...CY-LIQUIDATION/

— A standoff between Hostess Brands Inc. and thousands of its bakery workers was heading for a showdown Thursday as both sides declared they would not bend and were set to accept the demise of the historic maker of Twinkies and Wonder Bread.

Members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike November 9 to protest 8 percent pay cuts and other health care and pension concessions sought by the company.


So instead, 18,500 workers get NO paycheck and can stand in the UE line. What a really wonderful idea!

[unbroken_chain]

I converted to eating Little Debbie a long time ago....

[Tim the Beek]

I converted to eating Little Debbie a long time ago....

This comes as a surprise to no one.

[unbroken_chain]

gotta stay away from the Hoho's though

[deadheadskier]

[hoagie]

:yanking my chain:

[PeaceFrog]

good riddance

[Java Time]

indeed...we should thank the unions for helping us eat healthy...unfortunately 18,500 people may not get to eat so well now or share your stance

good riddance

[PeaceFrog]

indeed...we should thank the unions for helping us eat healthy...unfortunately 18,500 people may not get to eat so well now or share your stance

Would you take an 8% cut in pay just to keep Twinkies alive?

I don't think people should be forced to work for less money.

I don't think people should have to work for food, either.

[TakeAStepBack]

Yes, they should all get "free" food.

They weren't taking an 8% decrease to keep twinkies alive. Anyone who thinks that isn't playing with a full deck. They would agree if they valued THEIR PAYCHECK on the other hand. If 8% was so disasterous that throwing the job away was the right move, then they made the right decision. I'm sure the UE line will prove a much better chess move.

[MeOmYo]

surely, the unemployment line will cover that 8%

[Lemireacle]

They weren't taking an 8% decrease to keep twinkies alive. Anyone who thinks that isn't playing with a full deck. They would agree if they valued THEIR PAYCHECK on the other hand. If 8% was so disasterous that throwing the job away was the right move, then they made the right decision. I'm sure the UE line will prove a much better chess move.

I had to make this vote about a year ago or so. The governor's office and the union respresenting NYS worker failed to reach an agreement on a contract, so it was put to vote to either take both a pay cut and a slight reduction in our benefits package or putting thousands of the work force at risk of losing their job.

It was an easy decision to make, despite being pretty secure in the position I am in.

[hoagie]

surely, the unemployment line will cover that 8%

I would have also taken the UE line, and held to my principles. There will always be work out there. There wont always be Hostess...there's a lesson here.

Workers are more valuable than the company wanted to pay.

[Java Time]

Yes, they should all get "free" food.

They weren't taking an 8% decrease to keep twinkies alive. Anyone who thinks that isn't playing with a full deck. They would agree if they valued THEIR PAYCHECK on the other hand. If 8% was so disasterous that throwing the job away was the right move, then they made the right decision. I'm sure the UE line will prove a much better chess move.

considering the fact that in Iriving Tx for 149k you can get a 3500sq ft house new and more than likely those union workers were paid more than enough than the average non union worker doing the same job in Irving Tx. as far as the other hubs I'm pretty sure those workers were overpaid for the tasks they did as well...so yes an 8% cut in pay where it would still have me gainfully employed and no real fear of losing everything...like being unemployed might. I'd keep it.


shame on the union reps who did not investigate the Co.'s finances before embarking on their country wide strike. Are they going to assist the 18,500 people? are their dues they have been paying going to help the unemployed folks or is that just going to fatten the Union big wigs pockets?

[TakeAStepBack]

You chose to lay off thousands, right Rich?

[Java Time]

Would you take an 8% cut in pay just to keep Twinkies alive?

I don't think people should be forced to work for less money.

I don't think people should have to work for food, either.

considering the fact that in Iriving Tx for 149k you can get a 3500sq ft house new and more than likely those union workers were paid more than enough than the average non union worker doing the same job in Irving Tx. as far as the other hubs I'm pretty sure those workers were overpaid for the tasks they did as well...so yes an 8% cut in pay where it would still have me gainfully employed and no real fear of losing everything...like being unemployed might. I'd keep it.


shame on the union reps who did not investigate the Co.'s finances before embarking on their country wide strike. Are they going to assist the 18,500 people? are their dues they have been paying going to help the unemployed folks or is that just going to fatten the Union big wigs pockets?

[Java Time]

Yes, they should all get "free" food.

They weren't taking an 8% decrease to keep twinkies alive. Anyone who thinks that isn't playing with a full deck. They would agree if they valued THEIR PAYCHECK on the other hand. If 8% was so disasterous that throwing the job away was the right move, then they made the right decision. I'm sure the UE line will prove a much better chess move.

considering the fact that in Iriving Tx for 149k you can get a 3500sq ft house new and more than likely those union workers were paid more than enough than the average non union worker doing the same job in Irving Tx. as far as the other hubs I'm pretty sure those workers were overpaid for the tasks they did as well...so yes an 8% cut in pay where it would still have me gainfully employed and no real fear of losing everything...like being unemployed might. I'd keep it.


shame on the union reps who did not investigate the Co.'s finances before embarking on their country wide strike. Are they going to assist the 18,500 people? are their dues they have been paying going to help the unemployed folks or is that just going to fatten the Union big wigs pockets?

oops quoted the wrong quote Mr. Back

[hoagie]

considering the fact that in Iriving Tx for 149k you can get a 3500sq ft house new and more than likely those union workers were paid more than enough than the average non union worker doing the same job in Irving Tx. as far as the other hubs I'm pretty sure those workers were overpaid for the tasks they did as well...so yes an 8% cut in pay where it would still have me gainfully employed and no real fear of losing everything...like being unemployed might. I'd keep it.


shame on the union reps who did not investigate the Co.'s finances before embarking on their country wide strike. Are they going to assist the 18,500 people? are their dues they have been paying going to help the unemployed folks or is that just going to fatten the Union big wigs pockets?

Shame on Hostess for failing to make a competitive product, and then instead of doing something about that, turning on their own employees to make up the difference.

They could have just cut 8% of all managements pay, or redistributed bonuses....

[Lemireacle]

You chose to lay off thousands, right Rich?

Of course!

[Joker]

There will always be work out there.

Please tell that to all those freeloaders claiming different

[hoagie]

Please tell that to all those freeloaders claiming different

shut it, grampa. Here is a transistor radio locked into the EIB Network.

[TakeAStepBack]

Of course!

I guess you can be thankful you were in the cut on that fold.....

[Lemireacle]

I guess you can be thankful you were in the cut on that fold.....

'

I was totally kidding. I am thankful that the cuts were spared, but not comfortable with the uncertainty that the dilmena won't arise again and end with similar a outcome.

[JBetty]

I guess you can be thankful you were in the cut on that fold.....

[TakeAStepBack]

'

I was totally kidding. I am thankful that the cuts were spared, but not comfortable with the uncertainty that the dilmena won't arise again and end with similar a outcome.

Well, the good news for you is that the state isn't going out of business any time soon.

[Lemireacle]

Well, the good news for you is that the state isn't going out of business any time soon.

If that meant my job remained secure as it was when it was an issue, that would mean it's good news. Unfortunately, that is not the case!!

[Java Time]

Shame on Hostess for failing to make a competitive product, and then instead of doing something about that, turning on their own employees to make up the difference.

They could have just cut 8% of all managements pay, or redistributed bonuses....

that's the case with management in any large business...but I think they cut management staff last time out during the first chapter 11 filing...but either way those folks will have no job now the union mishandled this just as much...no actually worse because they did not have their workers best interest in mind nor did they do any investigating before acting on such a strike.

[Java Time]

not to worry about the 18,500 folks without a job...I am sure there are plenty of jobs out there all across America for union folks such as

• "put toothpick in a cupcake to see if it is done guy",
  
• "sit on my ass and watch things bake guy" and...
  
• "sit on my ass watching the guy sitting on his ass watching things bake guy"

No worries folks...no worries

[TakeAStepBack]

Well, we could have them dig holes and then fill them back in. That's economically productive.

[Lostsailr]

Unions built America (really, look it up...at least the middle class)
Was there greed in the process? Yes. Was there about 500x more greed in the corporations (especially those who opposed unions to begin with ) damn right.

That being said, I don't thinkt there is a Hostess product made that is worth saving. and you don't have to worry about Twinkies...they will last many years. They don't have a shelf life, they have a half-life!

[hoagie]

I don't thinkt there is a Hostess product made that is worth saving.

/thread

[unbroken_chain]

it appears some of you have forgotten Chocodiles...

:runs from room in tears:

[Tad Dense]

it appears some of you have forgotten Chocodiles...

:runs from room in tears:

it takes awhile to eat a chocodile.

[Julius]

There's plenty of blame to go around for this. I'm generally pro-union in theory but sometimes the rules can be so terrible they destroy a business. In the case of Hostess the union had rules like requiring different trucks for bread and cakes, even if that meant running them at low capacity when the business was struggling. That's just fucking shameful IMO.

[unbroken_chain]

Fruit Pie the Magician will be up to his "old" Tricks I fear

[In A Silent Way]

[In A Silent Way]

[china cat]

[deadheadskier]

Hostess has $800 million in debt. I'm sure that's near impossible to sustain on $2.5B in annual sales. They've been in bankruptcy before.

The only solution would've been for that commi bastard Obama to offer a Twinkie Bailout to save the jobs.

[PeaceFrog]

the workers took a cut in pay in 2004, and none of that money was used to make the company better.

How many times must a worker take a cut in pay so the CEOs can make off with millions?

It was a shitty product, and it's gone now thank god. I wouldn't take a cut in pay just to keep this garbage around.

How come you hate the free market?

[Joker]

It appears this was the smaller baker's union calling for the strike even against the wishes/warning of the larger Teamster's union.

I had to laugh at how they even called for a secret ballot vote, something they usually don't do so they know which members are voting which way

Union members push Hostess Brands Inc. out of business, costing 18,500 jobs




(Most of this info is in TASB's link but there's a little more info on the contract and how it was being structured)

[china cat]

[In A Silent Way]

I doubt they're gone forever. Somebody will buy the rights and produce them in a right-to-work state.