Unions kills off Twinkie. 18,000 to lose jobs due to Union Thugs

[Soul Crusher]

The Demise Of The Twinkie: Hostess Files Motion To Liquidate
 Wall Street Journal ^

Posted on Friday, November 16, 2012 8:13:37 AM


The Demise Of The Twinkie: Hostess Files Motion To Liquidate

By Tom Gara

And that’s that: Hostess Brands, maker of Twinkies, Wonder Bread and more, announced this morning it has filed a motion with bankruptcy court to start liquidating the company immediately. A huge number of jobs are soon to be lost.

“Hostess Brands will move promptly to lay off most of its 18,500-member workforce,” said CEO Gregory F. Rayburn in the statement, “and focus on selling its assets to the highest bidders.”

In a letter posted on a new site set up to communicate with employees and suppliers through the liquidation process, Mr. Rayburn pinned the blame on its striking union:

Despite everyone’s considerable efforts to move Hostess out of its restructuring, when we began implementing the Company’s last, best and final offer, the Bakers Union chose to stage a crippling strike. This affected Hostess’ ability to continue to make products and service its customers’ needs and pushed Hostess into a Wind Down scenario. As a result, we are forced to proceed with an orderly wind down and sale of our operations and assets. We deeply regret taking this action. But we simply cannot continue to operate without the ability to produce or deliver our products.

There’s no way to soften the fact that this will hurt every Hostess Brands employee. All Hostess Brands employees will eventually lose their jobs – some sooner than others. Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the Company can offer you at this time.


(Excerpt) Read more at blogs.wsj.com ...

[Soul Crusher]

18,500 Workers Out Of Jobs As Hostess Shuts Down
Michael Kelley|49 minutes ago|1,509|9


Spencer Platt/Getty Images

Hostess Brands—the maker of Twinkies, Ding Dongs and Wonder Bread—announced that it is asking a federal bankruptcy court for permission to close its operations and sell its brands, James O'Toole of CNN Money reports.
 
The company, which blamed the liquidation on a strike by bakers protesting a new contract, will shut down 33 bakeries and 565 distribution centers nationwide as 18,500 workers lose their jobs.
 
Hostess filed for Chapter 11 bankruptcy in January, then reached a deal with one of its major unions in September that included a new contract with reduced wages and benefits. But the 5,000 member bakers' union rejected the deal, leading to the protested contract that cut salaries in addition to reducing the company's pension obligations and contribution to the employees' health care plan.
 
"Our members are on strike because they have had enough," bakers' union president Frank Hurt said in a statement on Tuesday. "They are not willing to take draconian wage and benefit cuts on top of the significant concessions they made in 2004 and give up their pension so that the Wall Street vulture capitalists in control of this company can walk away with millions of dollars."
 
The company gave bakers a 5 p.m. Thursday deadline to return to work or face a shutdown of the company.
 
Hostess—now controlled by a group of investment firms including hedge funds Silver Point Capital and Monarch Alternative Capital—will sell its assets to the highest bidder, meaning that some of its more popular products could be picked up at auction and packaged by other companies.
 
SEE ALSO: Forget Commodity Costs, It's Clear What Really Drove Hostess Into Bankruptcy >


Read more: http://www.businessinsider.com/18500-hostess-workers-out-of-jobs-2012-11#ixzz2COR1kUaD

[whork]

Thats capitalism folks

I thought you supported this?

[Soul Crusher]

Thats capitalism folks

I thought you supported this?

  


I just wish the job losses could be contained to the 5,000 union criminals and obama voters.   

[whork]

 


I just wish the job losses could be contained to the 5,000 union criminals and obama voters.   

That leaves only republicans.

And republican voters live of welfare in a trailer park they dont work.

[OzmO]

Twinkles and wonder brEad? 

Sends like more people woke up to the fact that that food is garbage. 

Market driven!  I like it.

[Soul Crusher]

Twinkles and wonder brEad? 

Sends like more people woke up to the fact that that food is garbage. 

Market driven!  I like it.

 

[whork]

Twinkles and wonder brEad? 

Sends like more people woke up to the fact that that food is garbage. 

Market driven!  I like it.

Exactly its capitalism.

333... claim to support this but as usual its BS from him

[OzmO]

Companies that don't change and adapt are destined to die.  

Same with Unions.

[Soul Crusher]

Companies that don't change and adapt are destined to die.  

Same with Unions.

DID YOU EVEN READ THE STORY? 

[War-Horse]

Did a bancruptcy before this. The competition for shelf space is pushing them out. You guys have see this in your convieneince stores too. A competitor offering the same food for less price......yes labor wages are one culprit but they admit they cant stay competitive.

Heres what will happen:  They will do a BK and get out of all the pension/health benefits promised. Then as a leaner package.....low overhead..... a bain capital or other company will pick them up and restructure with a license to use the name "Hostess"

Then they will hire non union workers at 9.00 and hour and no benefits.   There you go....the twinkies will be back in a year with lower prices and a freshly screwed 18,000 people looking for low wage job.

This is what will happen. The middle class will go to 3rd world wages and the rich will get richer.  Race to the bottom!

[War-Horse]

DID YOU EVEN READ THE STORY? 

He must have.   They couldnt compete and havent for 3-4 yrs. this is the 3rd world race to the bottom.  People bought cheaper snacks sitting right next to the hostess ones......and by doing that they lost.

[War-Horse]

That leaves only republicans.

And republican voters live of welfare in a trailer park they dont work.

This is true. ask anyone in the redneck southern states.  Whats funny is they vote against their own interest's....lol

[OzmO]

DID YOU EVEN READ THE STORY?  

Yeah,

Market driven, market correcting itself.  

Companies or unions that don't adapt will die.

Consumers instead of regulations determining what is sold.  That's what you want.

[GigantorX]

Did a bancruptcy before this. The competition for shelf space is pushing them out. You guys have see this in your convieneince stores too. A competitor offering the same food for less price......yes labor wages are one culprit but they admit they cant stay competitive.

Heres what will happen:  They will do a BK and get out of all the pension/health benefits promised. Then as a leaner package.....low overhead..... a bain capital or other company will pick them up and restructure with a license to use the name "Hostess"

Then they will hire non union workers at 9.00 and hour and no benefits.   There you go....the twinkies will be back in a year with lower prices and a freshly screwed 18,000 people looking for low wage job.

This is what will happen. The middle class will go to 3rd world wages and the rich will get richer.  Race to the bottom!

More likely is that they will liquidate and the profitable pieces will be bought up by competitors. Although your scenario can happen as well.

The Teamsters Union even told the Bakers Union that it was a very, very bad idea to strike as the company was in dire straights (great band!) and it would most likely kill them. The Teamsters even suggested that the Bakers Union hold private ballots to determine the authorization for a strike instead of doing public "voice votes" in union halls.


Man, free trade and all is super cool until you sign a free trade agreement with a nation that has a much lower standard of living and thus is able to pay its workforce about 15% what the U.S. can.

Doh!

[littledumbells]

More likely is that they will liquidate and the profitable pieces will be bought up by competitors. Although your scenario can happen as well.

The Teamsters Union even told the Bakers Union that it was a very, very bad idea to strike as the company was in dire straights (great band!) and it would most likely kill them. The Teamsters even suggested that the Bakers Union hold private ballots to determine the authorization for a strike instead of doing public "voice votes" in union halls.


Man, free trade and all is super cool until you sign a free trade agreement with a nation that has a much lower standard of living and thus is able to pay its workforce about 15% what the U.S. can.

Doh!

Bingo!

[War-Horse]

More likely is that they will liquidate and the profitable pieces will be bought up by competitors. Although your scenario can happen as well.

The Teamsters Union even told the Bakers Union that it was a very, very bad idea to strike as the company was in dire straights (great band!) and it would most likely kill them. The Teamsters even suggested that the Bakers Union hold private ballots to determine the authorization for a strike instead of doing public "voice votes" in union halls.


Man, free trade and all is super cool until you sign a free trade agreement with a nation that has a much lower standard of living and thus is able to pay its workforce about 15% what the U.S. can.

Doh!

Well said. Being freindly about globalization is killing the usa.   But its us people shopping for the lowest price on everything that makes the competitors defeat us.   Were destrying ourselves.

[whork]

More likely is that they will liquidate and the profitable pieces will be bought up by competitors. Although your scenario can happen as well.

The Teamsters Union even told the Bakers Union that it was a very, very bad idea to strike as the company was in dire straights (great band!) and it would most likely kill them. The Teamsters even suggested that the Bakers Union hold private ballots to determine the authorization for a strike instead of doing public "voice votes" in union halls.


Man, free trade and all is super cool until you sign a free trade agreement with a nation that has a much lower standard of living and thus is able to pay its workforce about 15% what the U.S. can.

Doh!

This!!

[240 is Back]

see, I view this as the market doing what the market does.

If you want cheap junk food cakes, Little Debbie is 1/2 to 1/3 the price of Hostess cakes.

If you want quality junk food, Entemanns is about the same price as hostess but way more quality.

I love Ho-ho's, but its hard to spend $3 on a pack of 8 of them, ya know?

[War-Horse]

see, I view this as the market doing what the market does.

If you want cheap junk food cakes, Little Debbie is 1/2 to 1/3 the price of Hostess cakes.

If you want quality junk food, Entemanns is about the same price as hostess but way more quality.

I love Ho-ho's, but its hard to spend $3 on a pack of 8 of them, ya know?

Yes. Thats what i said.   

[Soul Crusher]

5,000 Union Dirtsbags cost the company and 13,000 other jobs, you cool wih that?

Those bosses who made those decisions should be hunted down and forced to answer to everyones' families. 

see, I view this as the market doing what the market does.

If you want cheap junk food cakes, Little Debbie is 1/2 to 1/3 the price of Hostess cakes.

If you want quality junk food, Entemanns is about the same price as hostess but way more quality.

I love Ho-ho's, but its hard to spend $3 on a pack of 8 of them, ya know?

[War-Horse]

5,000 Union Dirtsbags cost the company and 13,000 other jobs, you cool wih that?

Those bosses who made those decisions should be hunted down and forced to answer to everyones' families. 

The company was on a death mission anyway....it wasnt competeting and this was the cherry on top.  Blame the unions for 100% of it and turn it political.

[Soul Crusher]

Twinkie Party: The Loss of 18,000 Hostess Jobs Is All a Big Joke to ABC News
NewsBusters ^

Posted on Friday, November 16, 2012 12:56:40 PM by


The cast of Good Morning America on Friday treated the bankruptcy of Hostess and the loss of 18,500 jobs as a hilarious joke. Josh Elliott, George Stephanopoulos and others guffawed as they handed out Twinkies and ate them on set.

[240 is Back]

5,000 Union Dirtsbags cost the company and 13,000 other jobs, you cool wih that?

Those bosses who made those decisions should be hunted down and forced to answer to everyones' families. 

Where did I say I'm cool with the union crap?   I'm not.   I have said repeatedly I support slashing every union in america by HALF and waiting ten years, then re-evaluating.  They are needed in some extent - BUT at the same time, employers will abuse without them.

I'm just saying that from a consumer viewpoint, hostess falls in no mans land.

[24KT]

Twinkles and wonder brEad? 

Sends like more people woke up to the fact that that food is garbage. 

Market driven!  I like it.

EXACTLY!!! If they were producing a product that people wanted to buy, they wouldn't be in dire straits.