IRVING, Texas - Say goodbye to your Twinkies. North Texas-based Hostess Brands, Inc. has decided to go out of business and liquidate its assets after failing to win back striking workers. The company posted a statement on a website set up specifically for people following the strike. "We deeply regret the necessity of today´s decision, but we do not have the financial resources to weather an extended nationwide strike," said Gregory F. Rayburn, chief executive officer. "Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.
Reply 5 - Posted by:
Bad Dog, 11/16/2012 7:53:33 AM (No. 9017856)
Sadly, this is the only way to end union tyranny. They won´t give an inch on anything - so other sacrifices have to be made.
We closed our company for almost the same reason: Union intimidation and ever-escalating union wages and benefits, while the rest of us non-union suffered drastic pay cuts to keep the doors open and everyone else at least employed.
FTA: ´´Hostess said it will seek bankruptcy court permission to sell all of its assets.´´ Watch for Direction 10-289 here to be imposed here.
I´d better add my favorite mini cupcakes to the grocery list - I´ll miss them when they go bye-bye.....
I´ve seen this before. The company tells the union the truth, they will close the plant because the union strike is unsustainable as are its demands and the union tells its members the company in bluffing. Then when the plant closes the union members can´t believe it. Too late. Losers.
I´m sure some of my fellow Hoosier Ldot´ers remember Roselyn´s bakery. When they went under, the Roselyn´s brand and recipes were bought and the purchasing company made the same goods with the Roselyn recipe. I´ll bet the Hostess name will get bought and some enterprising (hopefully non-union) company will continue to carry on the Twinkie Tradition.
You ain´t lived until you have had a deep fried Twinkie at the Texas State Fair. But I will gladly give them up to see these union thugs slapped down. The problem is they will all just go on the dole and get their hands in our pockets anyway.
S/C on. Maybe Obama can use our money to buy the company. Then he can give it to the union. The same way he did GM and Chrysler. He then can distribute the products to stores that only have supported him and his agenda. Sound familiar? S/C off.
I thought of that as well #21. But then Her Highness thinks we should all be eating nothing but raw vegetables and arugula, so I´m sure She is happy to see these evil sweets disappear from the shelves where the proletariat and bourgeoise shop. After all, she still has her personall chef in the WH that can make anything she desires from scratch.
One down, how many more union companies to go? Barry will step in and buy the company. Perfect plan, Moochie as president and Bloomberg as VP of Hostess. The food police running a twinkie factory!!hahahahaha
18,500 employees. The union represented 5,000. That means that less than 1/3 of the employees dictated terms for the remaining employees - which turned out to be losing their job. Hope that´s a lesson in union representation for someone.
Reply 37 - Posted by:
Old Army Vet, 11/16/2012 8:42:33 AM (No. 9017955)
This is nothing new. This is how unions work. If we think that you can afford it, we want more. The only problem with that is that the unions always think that the company can afford it. This is "our work" is the catch phrase of the unions. As I´ve said before, the unions do not care about the members, only keeping the money flowing in to the union counts.
remember the campaign commercial about the company that blamed Bain Capital and Romney for closing it down...that plant was shut down by union demands...had nothing to do with Bain.it shut down 10 years after Bain took over.... I feel for all the non union people that lost their jobs at this bakery...but the union jerks I just dont care about...obama willtake care of them....but the happy part is those union memebers still have to pay dues so the union leaders dont have to suffer loss of income...
Union wankers always view the world with an unrealistic sense of self-serving. I despise them for this very selfish attitude. Most do jobs a monkey would excel at yet get paid as though they all have advanced degrees. Have a nice Christmas Bakery, Confectionery, Tobacco Workers and Grain Millers International Union members.
With unemployment compensation, food stamps, medicaid, Section 8 housing assistance, unearned income tax credit, etc., the laid-off Hostess employees will do quite well. They will also have plenty of time to sharpen their skiing, tennis, and golfing skills.
I saw their CEO on TV this morning. One big roadblock to surviving was the union work rules. They had to have separate employees doing every little task, which drove up labor costs way higher than necessary.
There were many different unions at Hostess and very restrictive work issues. For instance, Twinkies and Wonder Bread going to the same store had to be delivered by two different drivers on the different trucks. None of the unions wanted to negotiate, figuring it would make them weaker with other companies.
Sad part of all this is that it´s not just jobs at Hostess that take the hit. Large bakeries (as well as other large production companies) often produce products for other companies´ brands, for efficiency of scale.
So, this will have a ripple effect to other baked goods companies, as well. Their product lines may experience shortages while they try to establish a different manufacturing source. Also, the shutdown also affects ancillary jobs, such as suppliers for Hostess and service businesses for the plant, etc..
Good for you, unions. You really showed management this time, didn´t ya? Hope y´all are happy this holiday season.
Reply 59 - Posted by:
fiesta del sol, 11/16/2012 9:40:28 AM (No. 9018106)
How many companies have announced layoffs since last Tuesday? 18,000 in one day with Hostess. I would say Obama built that, but really the media built that. Congrats, MSNBC, Scarborough, Brian Williams, Soledad O´Brien...lying about Republicans and protecting King Obama has worked out well.
I belong to a union for 34 yrs. They took 40 dollars a month for union dues and told me who to vote for in their monthly pamplet. The company had 20,000 employees. where in the hell did all of that money go...We did not get any from the union when we retired...
What a terrific article on something that had to happen and will need to happen more if we are to free our country from the unions´ stranglehold.
This one ended up pitting the Teamsters (7500 Hostess employees who agreed to reduced wages and benefits) and the smaller Bakers union (5000 employees) who held out and brought the company down. Now all 18,500 employees are unemployed. And when asked if there couldn´t be more negotiation, the Hostess CEO said "Too late".
The Teamsters also said that the Bakers should have voted by secret ballot rather than the voice vote they employed to vote on this. We all know what Obie feels about the secret ballot - dump it - and Trumka came out of the union meeting with Obie at the WH trumpeting that the secret ballot would go away soon.
I applaud Hostess´s management for their courage. I call them patriots.
#33, you are funny. Do you have any idea of what is required to pay out a payroll week after week? Look at your feet they are entangled in the whole OWS, Obamanation, Union card check/intimidation, corporate greed, mindset that has ´changed´ the economy into some kind of moronic worker ´utopia´ that is code for crony capitalism. This grand plan gives up green energy companies that suck half a billion dollars out of your tax money and produce NOTHING. This brilliant ´fair´ thinking hands out exemptions for the unconstitutional ´tax´ of obamacare so those who pay or who made this horror get useful health care and you get a waiting list and aspirin.
Yeah, you hit it, this company is folding because it´s a management issue. Hey, maybe you can call some friends and hire ONE of the unemployed Hostess workers. Show the world how to ´manage.´
This story reminded me of the demise of a fine airline, Eastern Airlines. It was brought down by the International Association Of Machinists & Aerospace Workers union when the company was faced with the increased competition of the Carter deregulated airline industry.
#62 Texas is a right to work state but much of the production was located in closed shop states. When the story first broke about this, the company proposed to keep bakeries going in non-union locations but apparently someone told them that it wouldn´t fly (uncle sugar?) So I believe they made the only decision they could under the circumstances.
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