Posted on 11/16/2012 4:34:48 AM PST by RabidBartender
Hostess Brands Inc., the maker of the iconic snack, announced today that it will liquidate the entire company because not enough striking employees returned to work by a Thursday evening deadline set by the company.
"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."
Hostess said it will seek bankruptcy court permission to close its business and sell its assets, "including its iconic brands and facilities. Bakery operations have been suspended at all plants."
"The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the Company's largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the Company's ability to produce and deliver products at multiple facilities," the company said in a statement.
"We simply do not have the financial resources to survive an ongoing national strike," Rayburn said in a statement Wednesday. "Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire company, which will result in the loss of nearly 18,000 jobs."
More at link
(Excerpt) Read more at abcnews.go.com ...
People are such fools. And the Union Leaders smile all the way to the bank. They have all these folks’ money.
“They have NOTHING to offer these days but suffering for the working man.”
And election victories for leftist politicians.
You can’t have one centralized bakery to serve the whole country, Hostess is a national brand.
“Most of their employees work in plants...you just can’t move a facility to a nkn work state....they have 20 plus bakery plants across the country.”
Oh yes you can. The industry that does just that is quite large and the move is very quick. They use big machinery and big transportation to accomplish it.
Most of their plants could be emptied in two weeks.
“Then, the cream mix ~ that’s something i haven’t quite matched but i prefer light cream cheese here ~ and i make them like little pancakes.”
Cool Whip.
“What kind of union boss fool tells the members/workers to strike in this economy?”
One who regularly speaks at CPUSA gatherings.
Oh, I guess that nails it.
Hostess had 20 bakeries. Nabisco had 8. Everyone had access to an Oreo.
Speaking of which, in the 90’s I worked for a large producer of cookies. At one of the plants, there was a cafeteria. It had around 20 unionized employees working there.
Well, management went to the union to give up an employee so they can put him on the line. The cafeteria was already over it’s limit. The union said no. Management asked again. The union said no, again. Management asked one final time. The union, once again said no. So Friday passes, Saturday, Sunday....
On Monday, people go to work and notice something odd. There are vending machines where the cafeteria once was and layoff notices for 20 people. The union goes ballistic.
Eventually the union gives in and says they will give up a person to work on the line. Management says no.
20 people fired because the union wouldn’t let one union employee go to another department which by the way was union.
In another age it would be possible, now with all the rules, probably not.
Problem is the union won’t get its dues off of laid off workers. Lets see how that works out for them.
Boy that is going to put a dent in the jobless numbers.
That darned hurricane Sandy sure's been working overtime./S!
Idiots.
Well, at least they don’t have to go out in the cold and strike any more!
I am right ~ this company is in its second round of banruptcy. Time for liquidation.
Clever engineers figured out how to make small modular bakeries that can be stuffed into neighborhood grocery stores, or other stores, and then operated by unskilled labor.
The days of the bakers union have come and gone ~ the big bread manufacturing factories are done.
Perhaps if they didn’t have union rules and union contracts, they would have automated.
You won’t get far defending unions on this site.
And with that you don't need a union.
A requirement that everybody, not just hollywood stars and athletes, be required to sign contracts with anyone else before accepting payment for labor would eliminate all those needs.
Unions in this country started up as an outgrowth of the old guild system ~ which protected skilled labor markets, and the fact your ordinary person really couldn't afford a lawyer, nor even to go to court in a civil suit.
Cooperative action is an ancient custom dating back to the times we had to hunt mastadons or giraffes, or defend ourselves from cavebears and lions ~ kind of predates government in fact. Just because you have government now is no excuse for prohibiting people from cooperating in activities ~ first amendment stuff.
Is there some reason the first amendment is now out of favor on FR? I don't think so ~
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