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...

[Lisa O'Brien]

I bet they feel stupid now.

[XLFD]

The latest contract that management put out had wages cut by 8% immediately, and up to 32% eventually over time, including the loss of pension contributions by the company.  I feel sorry for the workers in this case, and think management may be overreaching, even if the company is in chapter 11, by delivering these Zingers. 

God, what a sorry world this would be without Zingers.

[Lisa O'Brien]

Where did you find this - I looked around the web and could only find the 8% that was for both the union employees and management. My company(previous company - we were bought out in September) stopped pensions roughly 8 yrs ago, they went to a 401k plan, which most companies are going to these days.

[XLFD]

Here's a release from the union, which makes that claim:  http://bctgm.org/PDFs/NationalStrikeHostessBrands_11_9_12.pdf

This release was nested in this article: 

http://www.latimes.com/business/money/la-fi-mo-twinkies-hostess-str...

This may have been refuted by management, but I didn't see any evidence they did.

[Willy]

This is similar to the Metalworks Manufacturing strike where all the workers lost their jobs. The owner made it a non union shop so the workers  that did return were then without a union.

[XLFD]

Good analogy, Willy.   This does look a lot like Hostess management may be doing some union busting.  My big fear is that our progressive government will try to strengthen unions by crippling what management can do to save itself, and lead to more business closures and movement overseas.

[Willy]

I heard a report on the radio about how many companies are laying off workers in preparation for the coming tax increases and full implementation of Obama care. Also many companies are reducing workers hours to match the minimum hours needed to avoid the Obama care requirement that workers who work 30 hrs or less are not required to have their employer provide health insurance. No matter how bad things will get, the idiots that voted for Obama will still continue to blame Republicans just because they believe whatever comes out of the Presidents mouth. I still can't believe he's going to be here for another term.

[AQUAMAN]

Ding Dongs and Twinkies are exactly what the Union officials and their blind followers look like to me. From a business man's standpoint, you don't kick a company that is already down, way down, like Chapter 11 Bankruptcy status, it's insane. Irregardless of union policy, wants and needs, you do what you have to in order to support the company, keep working, at least for the time being, until economics change where they are out of Bankruptcy and operations are profitable. Then you make your move for more concessions and increased wages/salaries. Add another 627 people on the unemployment/welfare/food stamp lines, blindly led by the fat cat zoot suits in big city glass buildings with millions of dollars in their pockets, and have nothing to financially lose themselves in the deal. Wth are Zingers anyways? Sounds like a Shay treat to me....lol.

[XLFD]

Nooooo! Hostess Brands are Closing for Good.  Hostess announces that it is asking a federal bankruptcy court for permission to close its operations today.

[Lisa O'Brien]

Wow I think it shows bad judgment on the workers part. Hope they enjoy unemployment checks and no health insurance.

"The Bakers' union has made several statements earlier in the week saying management is to blame for the condition of the company, not the strike. It did not respond to numerous requests for comment Friday.

The new contract cut salaries across the company by 8% in the first year of the five-year agreement. Salaries were then scheduled to bump up 3% in the next three years and 1% in the final year.

Hostess also reduced its pension obligations and its contribution to the employees' health care plan. In exchange, the company offered concessions, including a 25% equity stake for workers and the inclusion of two union representatives on an eight-member board of directors. "

[Willy]

You have to wonder what the Union is thinking. These union members put themselves out of work so now they can join the 47%. Years ago it made sense to belong to unons but now it seems to be detrimental to workers employment security.                                                              

[Dave]

Knowing that the company has been in financial straits for awhile, It seems crazy that the union advised the workers to go on strike specially after the warning from the company that the doors would be shut if the strike lasted at all. I don't claim to be a genius but I realize that there are times when you just have to swallow a bit of pride and look at the big picture... what's going to work best for you.... having a job and steady income or not having a job and a piddly unemployment check? I'd vote for a job myself.