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No more Hostess

Posted by on Nov. 16, 2012 at 9:20 AM
  • 25 Replies

Hostess, the maker of Twinkies and Wonder Bread, plans to go out of business, lay off its 18,500 workers and sell its snack cake and bread brands.

The Irving, Texas, company said a nationwide strike crippled its ability to make and deliver its products, which also include Ding Dongs, Ho Ho's and Home Pride bread.

Hostess suspended bakery operations at all its factories and said its stores will remain open for several days to sell already-baked products.

The company had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening. The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

"Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," CEO Gregory F. Rayburn said in a letter to employees posted on the company website.

He added that all 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," Rayburn wrote.

Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting in September a contract offer that cut wages and benefits. Hostess said Friday the company is unprofitable "under its current cost structure, much of which is determined by union wages and pension costs."

A union representative did not immediately return a call from The Associated Press seeking comment on the company's announcement.

Hostess has said that production at about a dozen of the company's 33 plants has been seriously affected by the strike. Three plants were closed earlier this week.

Hostess had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters.

The company, founded in 1930, was fighting battles beyond labor costs. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.

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by on Nov. 16, 2012 at 9:20 AM
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Replies (1-10):
atlmom2
by Susie on Nov. 16, 2012 at 9:22 AM

18,500 people out of work because Unions wouldn't agree and take a pay cut.  Good going?  Not.  Dh works for a company that shut down factories because Unions couldn't agree.  More and more will happen like this. 

My friends dh works for Teamsters.  2 years ago he and others took not one, but 2 paycuts to stay working.  He has no regrets.  Teamsters didn't want them to vote for the cuts but they voted for them anyway. 

nana9106
by Darlene on Nov. 16, 2012 at 12:44 PM

 

This sums up how I feel!

DesignGirl450
by Lynda on Nov. 16, 2012 at 1:11 PM


Quoting atlmom2:

18,500 people out of work because Unions wouldn't agree and take a pay cut.  Good going?  Not.  Dh works for a company that shut down factories because Unions couldn't agree.  More and more will happen like this. 

My friends dh works for Teamsters.  2 years ago he and others took not one, but 2 paycuts to stay working.  He has no regrets.  Teamsters didn't want them to vote for the cuts but they voted for them anyway. 

Good for your husband for siding that way.  It is difficult for workers to take pay cuts when the cost of living is rising and the US economy is in a very bad way.  But he and others did what they could to keep their jobs, and should be commended.  It is unfortunate about the Hostess company as this will affect so many workers, their families, and the economy of the states which purchase/ship the products.   So sad. 

LadySaphira
by Lisa on Nov. 16, 2012 at 1:40 PM
1 mom liked this

IT is sad that so many will be out of work just because people did not want to work out some kingd of solution.  I much rather thake a cut in pay than to have no job at all.

CoeyG
by on Nov. 16, 2012 at 3:24 PM

I grew up with hostess in my lunch box...now all those kids will never know the joys of seeing that lucious cupcake sitting right there next to that thermos of milk...sigh

Bmat
by Barb on Nov. 16, 2012 at 3:36 PM

I heard this on the news on the way home today. I hope another company picks them up.

Bmat
by Barb on Nov. 16, 2012 at 3:37 PM

When I was in college, I craved twinkies.  I would buy 2 a week (not much money to spend and also knew they weren't good for me). My roomie had to hide them so I didn't sit down and eat them as soon as I got back to the dorm.

specialwingz
by Bronze Member on Nov. 16, 2012 at 3:40 PM

Seems people don't understand that these people hold out for more money becuase they have been held to contract rates and probably haven't had raises in years!  Cost of living keeps going up while employees' pay is frozen.

My fiance has been going through this with American Airlines for the last 6 years!  He hasn't gotten a raise in over 10 years because of the union contract of 2001.  The employees agreed to lesser wage increases, fewer holidays, sick pay cut in half and no length-of-service vacation increases.

They did all that to help keep the company above water.  Their contract ended in 2006.  Negotiations were at a stalemate for 5 years when the company filed for bankruptcy in Nov. 2011.  During bankruptcy court, it was discovered that over the course of those years, the CEOs continued to receive their $500M bonues and profit sharing REGULARLY.  It was also disclosed that the company owns nearly $100M in party mansion throughout the world, claimed to be used for "international business".  LMAO. 

All the while, the employees who keep the company going, were drowning in the economy where cost of living kept rising disproportionately to their pay.

You see, the top dogs really couldn't care less if the company goes bankrupt or not.  The "fat cats" have their pockets lined and their "futures" secured.  If you have doubts about this, just look up Tom Horton.  Do a little research and you will learn just how many companies he was hired to take into bankruptcy.  He is know as the "closer" in the business world.

So, yes, I stand behind the blue collar workers who stand up for what is right and good.  At times, I think our country should learn by example.  Our country is a country divided.  If it worked more as a union, we would see better results.

atlmom2
by Susie on Nov. 16, 2012 at 3:43 PM
A job is a job. 18,000 have no jobs now. Who wins? No one. Many union jobs cause places to close. Any job is a job in todays job market.


Quoting specialwingz:

Seems people don't understand that these people hold out for more money becuase they have been held to contract rates and probably haven't had raises in years!  Cost of living keeps going up while employees' pay is frozen.

My fiance has been going through this with American Airlines for the last 6 years!  He hasn't gotten a raise in over 10 years because of the union contract of 2001.  The employees agreed to lesser wage increases, fewer holidays, sick pay cut in half and no length-of-service vacation increases.

They did all that to help keep the company above water.  Their contract ended in 2006.  Negotiations were at a stalemate for 5 years when the company filed for bankruptcy in Nov. 2011.  During bankruptcy court, it was discovered that over the course of those years, the CEOs continued to receive their $500M bonues and profit sharing REGULARLY.  It was also disclosed that the company owns nearly $100M in party mansion throughout the world, claimed to be used for "international business".  LMAO. 

All the while, the employees who keep the company going, were drowning in the economy where cost of living kept rising disproportionately to their pay.

You see, the top dogs really couldn't care less if the company goes bankrupt or not.  The "fat cats" have their pockets lined and their "futures" secured.  If you have doubts about this, just look up Tom Horton.  Do a little research and you will learn just how many companies he was hired to take into bankruptcy.  He is know as the "closer" in the business world.

So, yes, I stand behind the blue collar workers who stand up for what is right and good.  At times, I think our country should learn by example.  Our country is a country divided.  If it worked more as a union, we would see better results.


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specialwingz
by Bronze Member on Nov. 16, 2012 at 3:52 PM

It's not the fault of the employees!  If the companies treated them better, they wouldn't be in this mess.  Corporate greed is the guilty culprit here!  They continue to raise prices on their products to make more profit, they cut employee benefits and pay, all in the name of profit.  Hell, yeah, I stand behind the Americans who stand up for themselves against these companies!!  The cost of living keeps going up.  But, paychecks and benefits keep going down.  SOMEONE needs to make a stand.  And, that's just what these people did.  Hostess took themselves down. 

Quoting atlmom2:

A job is a job. 18,000 have no jobs now. Who wins? No one. Many union jobs cause places to close. Any job is a job in todays job market.


Quoting specialwingz:

Seems people don't understand that these people hold out for more money becuase they have been held to contract rates and probably haven't had raises in years!  Cost of living keeps going up while employees' pay is frozen.

My fiance has been going through this with American Airlines for the last 6 years!  He hasn't gotten a raise in over 10 years because of the union contract of 2001.  The employees agreed to lesser wage increases, fewer holidays, sick pay cut in half and no length-of-service vacation increases.

They did all that to help keep the company above water.  Their contract ended in 2006.  Negotiations were at a stalemate for 5 years when the company filed for bankruptcy in Nov. 2011.  During bankruptcy court, it was discovered that over the course of those years, the CEOs continued to receive their $500M bonues and profit sharing REGULARLY.  It was also disclosed that the company owns nearly $100M in party mansion throughout the world, claimed to be used for "international business".  LMAO. 

All the while, the employees who keep the company going, were drowning in the economy where cost of living kept rising disproportionately to their pay.

You see, the top dogs really couldn't care less if the company goes bankrupt or not.  The "fat cats" have their pockets lined and their "futures" secured.  If you have doubts about this, just look up Tom Horton.  Do a little research and you will learn just how many companies he was hired to take into bankruptcy.  He is know as the "closer" in the business world.

So, yes, I stand behind the blue collar workers who stand up for what is right and good.  At times, I think our country should learn by example.  Our country is a country divided.  If it worked more as a union, we would see better results.



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