Goodbye Twinkie? Hostess Strike Leads To Permanent Closure Of 3 Bakeries

[Dave]

This is one of the reasons why I think that modern unions (police, fire and a few other public service excluded) are a disservice to those they are supposedly watching out for. They were told that closures were going to happen if they went on strike and the union bosses refused to yield and told their workers to strike anyway. If I was one of the now jobless workers, I'd be seriously PO'd at the union chiefs. Knowing that the company has been in trouble for sometime and facing daunting odds, anyone in the union higher up should be ashamed for letting this happen.

Hostess Brands Inc. is permanently closing three bakeries following a nationwide strike by its bakers union.

The maker of Twinkies, Ding Dongs and Wonder Bread said Monday that the strike has prevented it from producing and delivering products, and it is closing bakeries in Seattle, St. Louis and Cincinnati. The facilities employ 627 workers.

Hostess, based in Irving, Texas, operates 36 bakeries nationwide and has about 18,300 employees. It warned earlier this month that the strike, by about 30 percent of its workforce, could lead to bakery closures.

"We deeply regret this decision, but we have repeatedly explained that we will close facilities that are no longer able to produce and deliver products because of a work stoppage — and that we will close the entire company if widespread strikes cripple our business," Hostess Brands CEO Gregory F. Rayburn said.

Hostess said customers will not be affected by the closures.

A representative for the union could not be reached immediately for comment Monday.

Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike Nov. 9 to protest cuts to wages and benefits under a new contract offer, which the union rejected in September. Union officials say the company stopped contributing to workers' pensions last year.

Hostess has argued that workers must make concessions as it tries to improve its financial position. The privately-held food maker filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. Hostess cited increasing pension and medical costs for employees as one of the drivers behind its latest filing.

The company, founded in 1930, is fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating.

http://www.huffingtonpost.com/2012/11/12/hostess-strike-union_n_211...

[Willy]

R.I.P.

[masonco]

Over on FB someone posted the salaries of the union leaders...No wonder they don't care. Wonder what will happen if they end up with no union members? we are talking mid to high 6 digit wages for them.

Not sure if this link will work, so let me know...

http://www.facebook.com/photo.php?fbid=492263917473189&set=a.14...

[XLFD]

Those are management rates for union people.  I think through the years the severe mistakes by the union and management have worked hand in hand to cripple what should be a very viable company.  If you desire to hold management totally unaccountable read up on the recent history of Hostess executives and their salaries, and what they did earlier this year when facing bankruptcy.  If they actually cared about the company and settling its debts, they should have set a better example.  The union should have factored what a strike would have done in this climate.

[Brian Carlson]

Just the beginning of the Obama lame duck Presidency. Many more businesses to follow.

[XLFD]

On an optimistic note, if the Mayan calendar/end of the world stuff does come true, at least we won't have to endure an Obama second term.  

[masonco]

I read somewhere a judge ordered the Company and the union to renegotiate? Is that true? I can not find it this morning and what is the point if the union won't budge?

[Dave]

I did hear something about that. I'm sure we'll here more about this at some point today.

[XLFD]

They do so this afternoon, according to this Wall Street Journal article: http://online.wsj.com/article/SB10001424127887324307204578129282170...

Aquaman also stepped up, doing what he can to fight "That Dirty Beach" with his dependable cream-filled golden spongecake, and encourage negotiations.

 

[Dave]

Talks broke down and Hostess is back to shutting the doors again... so stock up on Twinkies and HoHo's and Ding Dongs, might be awhile before they are readily available again.