Skip to comments.Hostess Reopening Plants, Without Union Workers
Posted on 04/26/2013 5:55:33 PM PDT by markomalley
The bankrupt assets of Hostess Brands, Inc., the company responsible for Twinkies, Ho Ho's, Sno Balls and Ding Dongs, are being put back to work by a buyout firm. What's not being put back to work are the former Hostess unionized employees.
The unionized workers had been on strike when the company folded late last year.
The company had imposed a contract that would cut its 19,000 workers' wages 15,000 of whom belonged to the workers from the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union (BCTGM) by 8 percent. (The Teamsters was Hostess' largest union, followed by BCTGM.) The contract would have also cut benefits by 27 to 32 percent.
Hostess filed for Chapter 11 in January 2012. In November 2012, the company announced it would be shutting its doors for good. By that time, it had lost about $1.1 billion, largely due to bankruptcy filings.
But last month Apollo Global Management, LLC, and Metropoulos & Co., which owns Pabst Blue Ribbon and Vlasic pickles, bought the 83-year-old company for $410 million, renaming it Hostess Brands LLC. It is planning to re-open four bakeries over the next two and a half months, in Columbus, Ga.; Emporia, Kan.; Schiller Park, Ill.; and Indianapolis. It is also contemplating a fifth in Los Angeles.
(Excerpt) Read more at abcnews.go.com ...
Painful! Teach that writer some basic grammar. Yuk!
bon apetit, campers
Schiller Park...they’ll have a line 2,000 deep when they start taking applications.
Good news. Without a union, they are free to manage their company without the deadweight of parasitic unions. If they treat their new employees fairly, pay them competitively and allow them to fulfill their aspirations, they will be giving them more than a union ever could.
The union playing hardball during collective bargaining really worked out well, didn’t it?
The bakery union got multi billion dollar benefit from the TAA program
Seems like the union thugs got the last laugh..
Read it and weep.....
They’re going to open a plant in LA?
Couldn’t they find anywhere else in the west with higher taxes and more regulations?
Yup taxpayers are paying these union slugs up to $10,000 a year for two years....
Union sure showed them!
Perhaps we are seeing the spark of a new business paradigm. Structured bankruptcy to dislodge parasites like a breaching whale, then reconsolidate operations without the troublemakers.
(In fairness, I think it was only one union that took it down. The other unions had agreed to concessions.)
Is that why they lost their jobs? Twinkies went global? Nope.
Imagine what a union-free ding dong would be like!
I'm sure he is working on that even as we speak.
Opening in Illinois and California is flirting with fire.
Why on earth would they pick those two states both of which have pro-union legislators, outrageous regulatory rules, intimidating bureaucrats who think their mission in life is to find negatives where none exists and to write regulations guaranteed to harass business to a breaking point.
Doesn’t make any sense.
I also raised an eyebrow about a plant in California and even Illinois. Isn’t Illinois a closed shop state? I remember some issues about Emporia, Kansas, in the past but had to do with the meat packing industry which has been taken over by foreign workers. Can’t remember from which country but do remember that it involved having extra prayer breaks.
Any hiring in Emporia should help some with the unemployment situation in Wichita which has been really hit hard by downsizing of the aircraft industry.
Exactly. I plan to buy some of the new twinkees to celebrate another union free company.
I also assume the local unions won't picket, but will accept the new (non-union) employees/managers without threats of violence.
I mean, it would be out of character for gov't or the unions to harrass a private business, right?
Somalia, I bet.
Yeah, I’m sure glad those union workers stood their ground and refused that 8% pay cut! A 100% pay cut is so much better.
Seems like the union thugs got the last laugh..
Read it and weep.....
Maybe I missed something. According to the article the best these workers can expect is 75% of what they made, a 25% loss in pay. They turned down an 8% pay cut to get this.
If they were making $20 an hour with Hostess but can only find new employment for $10 the Government kicks in $5 for a total of $15 an hour. Taking the 8% would have cut their wages back to $18.40. How's this the last laugh?
The company had imposed a contract that would cut its 19,000 workers' wages 15,000 of whom belonged to the workers from the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union (BCTGM) by 8 percent. (The Teamsters was Hostess' largest union, followed by BCTGM.)
So, if 15K out of 19K workers are the SECOND largest union... How many are in the LARGEST?
This only works out if the unionistas are in both unions at once!
Hostess truck drivers that make deliveries must be unionized.
Maybe not the last laugh, but a good laugh nonetheless on the taxpayers back.
The union @holes put themselves out of work. Serves ‘em right.
Yep, it was Somalia. Thanks for the memory jog. I remember at the time wondering how on earth those people had ever gotten to Emporia. My daughter went to college there, small town, not a real happening place, just somewhere you drove through to get to the Turnpike and head south. She used to joke about cruising WallyWorld parking lot on Saturday evening for entertainment.
May you have success beyond your wildest dreams, shareholders and employees of Apollo!
Maybe it's time for a real Apollo candybar. It would be a hit!
“(In fairness, I think it was only one union that took it down. The other unions had agreed to concessions.) “
That’s absolutely correct. The bakers union totally screwed the other union workers, as all the other unions had agreed to the necessary concessions. All except for the bakers who went on strike and destroyed the company and 15,000 jobs.
Of course, the plants, equipment and recipes were still all ready to go for the new owners, sans unions of course.
“Opening in Illinois and California is flirting with fire.”
No kidding. Sounds like they have a death wish already.
I believe they want to use the existing plants. They’re trying to do it with about 1/10 the employees. The union of course if predicting failure. I think the union is “worried” that those plants accidentally went up in flames.
Probably - but the numbers, as presented, cannot be correct.
So much for intelligent reporting...
I believe they want to use the existing plants...”
That would make more economic sense. One of my friends defined multi-tasking for union members as anything that requires more than one muscle at a time so I’m sure they can get by with a lot less employees than before. Certainly hope there is no attempt by anyone to sabotage the plants. Some of my friends are having severe Twinkie withdrawal and I won’t let them have any out of the one box I bought at a Boy Scout fundraiser.
You mean in addition to giving each of the union thugs $10K a year of our tax money for two years?
Can't he can just add it to the Executive Branch expense or petty cash accounts..?
-——How’s this the last laugh?-——
Did it occur to you the union leadership already had this deal done...as a backup plant when they went on strike....
TAA should not apply to this labor issue, but it somehow does....though executive power...
We as taxpayers are footing the bill for these union slugs ill gotten subsidy....