Because the union has a contract with the company. Because the union is forcing the company into bankruptcy, the union employees are basically firing themselves.
By getting rid of the union contracts, the value of the company will increase dramatically.
For the most part, management employees will be retained by the "new" company and only the best "former employees" will be offered jobs with the "new" company.
Once the company is sold, which could happen by the end of the month, production will be up and running by the end of the year.
There isn’t going to be a “new” company.
Management probably have several deals in hand to sell the brands and recipes to Frito-Lay or some other such company who will use other non-union bakeries for production and their own drivers for distribution.
Hostess bakeries and drivers are now out-of-business.
And that’s what *should’ve* happened with GM and Chrysler.
And right there is the key to the GM bailout.
If GM had been allowed to go through "normal bankruptcy" their contract with the Unions would've been null and void. This is why the Democrats wanted to bailout GM. That is is huge swath of voters they would've lost (as well as a huge amount of cashflow into Democrat Campaign coffers!)
Thanks for your replies.
SHF, I hope you are right that we’ll get our snack cakes back soon.
I actually saw a driver from a rival company to Hostess stocking the shelves at a local store today. I was tempted to say something along the lines of “this Hostess thing could be good for you eh?” but the thought of being stuck with those crappy competition treats FOREVER just took the wind out of my sails.
Besides, it’s NJ, he’s probably another union guy, and he might have beat me up or something!
Solidarity forever, right?
Or at least until we go out of business, then “you’re on your own” as Mitt Romney DIDN’T say.