Posted on 11/14/2012 4:45:23 PM PST by tobyhill
Hostess Brands said Wednesday that it will go into liquidation unless bakers striking in protest against a new contract imposed in bankruptcy court return to work by the end of the day Thursday.
"We simply do not have the financial resources to survive an ongoing national strike," Hostess CEO Greg Rayburn said in a statement.
The liquidation would result in Hostess' nearly 18,000 workers losing their jobs. The bakers' union represents around 5,000.
The union did not immediately respond to a request for comment Wednesday, but has called the concessions demanded in the new contract "outrageous."
"Our members are on strike because they have had enough," bakers' union president Frank Hurt said in a statement 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."
(Excerpt) Read more at money.cnn.com ...
See my last post. Hostess is already headquartered in Texas, so it won’t take much effort to rise from the ashes!
“They are not willing to take draconian wage and benefit cuts...”
I wonder what the terms really are? Back in fall of 2008, just as the economy was tanking, Boeing folks went on strike. The last main disagreement was that they were being “forced” to pay a $15 copay for their doctor’s visits instead of $0. I imagine their press releases also used the word “draconian”.
I first thought that this was satire. The baking industry, I am told, has excess capacity and must reduce wages to remain competitive. This action does two things: it serves as a warning to the others that the union will come after them if they don't cave, and it gets capacity back in line, so the pressure on wages eases. The union wants both and doesn't give a damn about the stupid union members who are going to lose their jobs forever.
What skin does the other side have in the game? Anyone know? Somebody must be hoping the reorganization plan goes through. Who?
Personally, the cup cakes have not tasted the same - or nearly as good - since they went to the little vacuum form tray to hold the two cup cakes.
Move it overseas .
Try Belize
...too bad Government Motors did not take this path...
What part of IMPOSED in bankruptcy court do they not understand. I feel badly for the 13,000 not represented by the union but Hostess Brands should do what it needs to do.
Right. The one angle to this that adds some complexity and uncertainty is that Hostess owes millions of dollars to a couple of equity-fund owners/partners and nearly a billion dollars to bond holders, and the company would have to satisfy those lenders in the liquidation sale in order to “start over again.”
http://en.wikipedia.org/wiki/Bimbo_Bakeries_USA
So... I guess they'd rather have no job, no paycheck, no benefits and no retirement, eh? Because it looks like that's what they're choosing.
Zombieland comes to mind.
The pink spongey balls with coconut call out to me.
Yes, it moved its headquarters here. That was a great idea, but some of its operations are in union states. (5,000 of 18,000 workers ruining it for everyone)
Save money by shutting down the bakeries in union states!
I wonder if I could pay them a visit, being they are local.
Hostess is one my own employers biggest accounts. I’m really sorry to see this happening.
At one time Americans wanted to work, it’s clear that these workers would rather collect unemployment.
Why worry about their pensions when they will be lost anyway if the place closes.
Snowballs are good, aren’t they?
Only 7 percent of the private sector work force is unionized. Losing 5000 is going in the right direction. Just move to a right-to-work state, problem solved.
Any Ding Dong can see that this means war.
I just finished eating a Hostess Orange cupcake.
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