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  #1    
Old November 16th, 2012, 05:50 AM
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“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” CEO says

Hostess, the makers of Twinkies, Ding Dongs and Wonder Bread, is going out of business after striking workers failed to heed a Thursday deadline to return to work, the company said.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory F. Rayburn said in announcing that the firm had filed a motion with the U.S. Bankruptcy Court to shutter its business. “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 Brands Inc. had warned employees that it would file to unwind its business and sell off assets if plant operations didn't return to normal levels by 5 p.m. Thursday. In announcing its decision, Hostess said its wind down would mean the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores in the United States.

The Irving, Texas-based company had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters. But thousands of members in its second-biggest union went on strike late last week after rejecting in September a contract offer that cut wages and benefits. Officials for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union say the company stopped contributing to workers' pensions last year.
In an interview with Fox Business, CEO Gregory Rayburn said many workers had already crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined.

"The problem is we don't have enough crossing those lines to maintain normal production," said Rayburn, who first joined Hostess earlier this year as a restructuring expert.

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

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess had argued that workers must make concessions for it to exit bankruptcy and improve its financial position.

The company, founded in 1930, was fighting battles beyond labor costs, however. 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.

If the motion is granted, Hostess would begin closing operations as early as Tuesday.
"Most employees who lose their jobs should be eligible for government-provided unemployment benefits," Hostess said.
Source: http://www.nbcchicago.com/news/natio...#ixzz2CORWpKH0

---

'Nooo not the Twinkies and Hostess products' and 'I have to stock up!' reactions aside, what do you guys think of 18,000 jobs being lost in an economy in which it is already hard enough to get a job? Was the strike really a wise choice or should have have dealt with the cause of the strike in order to keep their jobs. Discuss!
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  #2    
Old November 16th, 2012, 07:15 AM
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I don't quite understand how a company like Hostess can go out of business in an overweight country like the United States, but okay.

It is unfortunate, but the company did tell them that this would happen. Nothing against the workers, but rather the union leaders. How stupid are they that they would call a strike on a company that has file for bankruptcy and then ignore the company's warnings?
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Old November 16th, 2012, 07:33 AM
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No... just no. :/ I am very disappointed. People need to look at the bigger picture... and that just isn't what was being done. They believed they weren't getting compensated enough or whatever... and now look what they get: nothing. I can't say that I'll miss Hostess goods themselves... as other companies have made very successful and even better-tasting "knockoffs." But the problem is here the job loss and how the economy will be affected. This is why people are folly to govern themselves... they do not understand or even know what they want...
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Old November 16th, 2012, 09:18 AM
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Let's just say that I am not happy today. I don't care if there are better tasting knockoffs, Twinkies are Americana and this is slap in the faces of people who love them. No knockoffs can replace Twinkies!

Now that I got that out of my way, the Unions knew Hostess was in bankruptcy, they still went on with the strike and now all the workers lost their jobs and we lost an American icon. I swear to god that a better financially stable company buys the Twinkies brand and keeps them alive.
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Old November 16th, 2012, 10:16 AM
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Thats one way to tell the Unions to go **** themselves.

Unions serve a purpose, but their purpose isn't to drive a company to bankruptcy.

Unions fault in this case, although I expect that some of them may try to sue the company, saying that they are doing this because they don't want to work with the Unions.
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Old November 16th, 2012, 10:38 AM
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If your company has to declare bankruptcy and liquidate its assets from one strike, there's more wrong with your company than just that. The strike was probably the final nail in the coffin, so to speak.
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Old November 16th, 2012, 10:41 AM
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I guess I'd better get my fill of Twinkies pretty fast, then.

And this is why Unions suck.
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Old November 16th, 2012, 10:44 AM
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Quote:
Originally Posted by TRIFORCE89 View Post
I don't quite understand how a company like Hostess can go out of business in an overweight country like the United States, but okay.
Binary's source clearly stated that people are becoming more conscious about what they're eating. Thus, they're actually thinking twice before buying snacks such as those, if you can believe that.

Regardless, those strikers should've listened to the company's warnings, but they never do. That's a decision that they'll end up regretting if they don't find another paying occupation, which, chances are, they won't be able to.
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Old November 16th, 2012, 10:51 AM
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Binary's source clearly stated that people are becoming more conscious about what they're eating. Thus, they're actually thinking twice before buying snacks such as those, if you can believe that.
That, and there are numerous other 'namebrand' companies making the same exact thing as well as numerous store specific generics.

Although they are good, twinkies are one of the things that tastes pretty much the same no matter if you get the name brand, or generic.
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Old November 16th, 2012, 12:44 PM
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Originally Posted by Blade_of_darkness View Post
Binary's source clearly stated that people are becoming more conscious about what they're eating. Thus, they're actually thinking twice before buying snacks such as those, if you can believe that
:\ I was joking.

Quote:
Originally Posted by Livewire View Post
If your company has to declare bankruptcy and liquidate its assets from one strike, there's more wrong with your company than just that. The strike was probably the final nail in the coffin, so to speak.
Indeed. Like some degree of bad management mixed with changes in the marketplace. But even so, why try to call the company's bluff? Clearly didn't work in their favour
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Old November 16th, 2012, 01:06 PM
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This is what happens when you let criminal union thugs run rampant! Now over 18,000 people will lose their jobs! Still think that union thugs help the working class?
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Old November 16th, 2012, 07:55 PM
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If nobody takes the brand and restarts production, I might as well find a knock off and learn to like it. That and my family buys Wonder bread too. Can't wait to break the news to my Mom.
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Old November 16th, 2012, 09:13 PM
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Whats strange about this is that before they started trying to cut worker wages, the executives at the company had voted to raise their pay by a significant number. The CEO had his salary tripled, and the other executives had a increase between 50 and 80%.

Sure, even without the pay increases the company still wouldn't have had the funds to remain operational. But you have to admit, that this looks pretty ****ing fishy.

Edit - Something to thing about, but the Unions might have more more willing to compromise if the executive board hadn't voted themselves massive pay raises when the company was tanking.
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Last edited by Mr. X; November 16th, 2012 at 09:27 PM.
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Old November 16th, 2012, 09:24 PM
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What I find very funny, is that while the executives at this company were trying to cut workers wages, they actually voted themselves massive pay increases.

Strange isn't it? While they were trying to slash workers pay by 8%/10% (one of the two, can't remember) they had also just given themselves a massive payraise. (The CEO had his salary tripled, and most of the other executives had their pay increased by just under 50%.)
Now they'll all have their pay cut by 100% because the whole company is shutting down!
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Old November 16th, 2012, 09:32 PM
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Yes and no.

The Executives also wrote in some increased bonus packages with their pay raises.

Basically, while the workers are ****ed, the Executives are going to be laughing all the way to the bank.

Going to restate this though. The Unions might/may/would have been more willing to compromise if the executive board hadn't voted themselves massive pay raises when the company was tanking.
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Old November 16th, 2012, 09:56 PM
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Fear not sad Americans, for Canada will still be producing Twinkies and Wonderbread. So... move over here.
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Old November 17th, 2012, 12:06 AM
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Fear not sad Americans, for Canada will still be producing Twinkies and Wonderbread. So... move over here.
You guys got plants independent from Hostess up in Maple Leaf land? If we run out over here, can you mail a few packs to me?
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Old November 17th, 2012, 06:04 AM
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Well I was going to bathe in nostalgia one last time with those little donettes but customers took them already at my grocery store. It's a bit sad to see them go, really.
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Old November 17th, 2012, 06:47 AM
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I'm truly upset over this. I need to get boxes of Twinkies, Ho-Hos ,Cupcakes and Ding-Dongs stat! While there will be knockoffs, nothing will ever replace the Twinkies as an American snack icon. Hoping some company buys the brand and starts reproduction. Or I'm gonna have to force myself to like a knockoff.

In this economy, those workers will have a hard chance finding new jobs, especially ones in the bakery field which they would mostly likely to find a position in. So they basically screwed themselves over by striking and not heeding to the company's warning.
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Old November 17th, 2012, 07:17 AM
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Originally Posted by TRIFORCE89 View Post
I don't quite understand how a company like Hostess can go out of business in an overweight country like the United States, but okay.
I know you said you were joking but I just wanted to speculate that because the US is so overweight, companies are all aiming for the sugary goodness so there's a lot of competition in the sweet thing category.

I didn't know it closed because of a strike, that kind of makes me sad. :( If the Teamsters of all unions folded, wtf was the second union thinking?
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Old November 17th, 2012, 08:32 AM
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They were proably pissed over the fact that the company executives voted themselves massive pay raises and better benefits packages before deciding to cut the workers pay and benefits.
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Old November 17th, 2012, 11:42 AM
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I haven't eaten hostess in years now i got to eat like pig before its gone #dietisonbreak
Unions have a purpose in society but recently they have caused nothing but hassle they need guidelines or common sense
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Old November 17th, 2012, 11:57 AM
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What could we possibly use as food source now in times of a zombie Apocalypse? My Zombieland survival guide says that it's twinkies or nothing!
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Old November 17th, 2012, 10:18 PM
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They were proably pissed over the fact that the company executives voted themselves massive pay raises and better benefits packages before deciding to cut the workers pay and benefits.
Well, tough. Life's not fair. It's not right, but those were the circumstances. Should have played within it instead of trying to call their bluff.

I'm sure they're more pissed that they are now unemployed.
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Old November 18th, 2012, 12:58 AM
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They were proably pissed over the fact that the company executives voted themselves massive pay raises and better benefits packages before deciding to cut the workers pay and benefits.
Exactly. Why are the workers a "NUISANCE" for demanding fair pay and benefits and not the actual problem (greedy COs)? If anything is a nuisance it's the corporate greed plaguing America.

On the bright side it's less crap being produced.
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