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Unions Kill Another Business


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What is the deal....they would rather be out of work and unemployed than dare go against their union bosses and take a slight cut in pay and benefits when a company is struggling due to economy?? I know some will say the executives and fatcats at hostess should have taken less profit....or some crap like that but I just dont get this mentality of take take take take and expect more more more in benefits and shit in this economy when everyone is struggling. Didnt they see what happened with GM and Chrysler...or where they hoping for the Govt to step in and buy them out? 18,000 people out of work for putting their entire trust in their union bosses negotiating in $500 suits while sipping martinis while their members stand in a picket line.

 

http://www.chicagotribune.com/business/breaking/chi-hostess-brands-seeks-court-permission-to-liquidate-20121116,0,3175964.story

 

 

 

Reuters

7:36 a.m. CST, November 16, 2012

 

Hostess Brands Inc., the bankrupt maker of Twinkies and Wonder Bread, said it had sought court permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.

 

Hostess said a national strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that began last week had crippled its ability to produce and deliver products at several facilities.

 

Hostess Chief Executive Gregory Rayburn said in an interview on CNBC Friday morning that Hostess could not avoid liquidation, even if members of its bakers' union ended their strike immediately and went back to work.

 

The liquidation of the company will mean that most of its 18,500 employees will lose their jobs, Hostess said on Friday.

In the Chicago area, Hostess employs about 300 workers making CupCakes, HoHos and Honey Buns in Schiller Park. Hostess also has a bakery in Hodgkins, where 325 workers make Beefsteak, Butternut, Home Pride, Nature’s Pride and Wonder breads.

The 82-year-old company said it took the decision to shut down after determining that not enough employees had returned to work by a deadline on Thursday.

 

The company, which filed for bankruptcy in January for the second time since 2004, said it had filed a motion with U.S. Bankruptcy Judge Robert Drain in White Plains, New York, for permission to shut down and sell assets.

 

Irving, Texas-based Hostess has 565 distribution centers and 570 bakery outlet stores, as well as the 33 bakeries. Its brands include Wonder, Nature's Pride, Dolly Madison, Drake's, Butternut, Home Pride and Merita, but it is probably best known for Twinkies -- basically a cream-filled sponge cake.

 

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Chief Executive Gregory Rayburn said in a statement.

 

"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," Rayburn added.

 

Union President Frank Hurt said on Thursday that the crisis at the company was the "result of nearly a decade of financial and operational mismanagement" and that management was trying to make union workers the scapegoats for a plan by Wall Street investors to sell Hostess.

 

Hostess said its debtor-in-possession lenders had agreed to allow the it to continue to have access to $75 million to fund the wind-down process.

 

"There's no way to soften the fact that this will hurt every Hostess Brands employee. All Hostess Brands employees will eventually lose their jobs - some sooner than others," Rayburn said in a letter to employees.

 

The company has canceled all orders in process with its suppliers and said any product in transit would be returned to the shipper.

 

In its filing with the court, the company said it would have incurred a loss of between $7.5 million and $9.5 million from Nov. 9 to Nov. 19 in lost sales and increased costs.

 

"These losses and other factors, including increased vendor payment terms contraction, have resulted in a significant weakening of the debtors' cash position and, if continued, would soon result in the debtors completely running out of cash," it said.

 

Hostess had already reached agreement on pay and benefit cuts with the International Brotherhood of Teamsters, its largest union.

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the one food you could count on to survive the apocalypse and still be edible....somewhat! :)

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I remember my first pair of Hostess cupcakes in 1950. Mmmmmm, good. Guess I'll have to go and hoard what I can find left. Shoot, they'll last forever, anyway.

Sad day, for sure. :cry::down:

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I guess the union for out of work workers pays more than 40 hour a week job? The dues are less too. Glad this happened after election. Wouldn't wan't any finger pointing! :rotfl:

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I'm gonna miss Ho-Ho's ..... thankful little debbie is still around

I'm married and can't enjoy HO-HO's
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never figured you a Twinkie type...does your wife know? :)

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"UNIONS KILL ANOTHER BUSINESS"

 

Was it unions or bad management? Not such an easy question.

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The only Little Debbies I have ever thought were edible were the Peanut Butter bars. All those other ones taste like sugar and lard.

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The only reason hostess is going out of business is because their management is failing and the public has decided to buy something else to snack on instead of ding dongs. It's funny how some jump right to it's the unions fault they failed, are you suggesting the union forced the company to sign a contract? Managment is to blame no one else. Stay with the times or get out of the business, seems like they picked the latter doesn't it.

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The only Little Debbies I have ever thought were edible were the Peanut Butter bars. All those other ones taste like sugar and lard.

 

Uuuummmmm..... Sugar and lard...

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speaking of bras,

thats always been my dream job, a bra salesman.

people tell me that may not be all its cracked up to be as some boobs you dont wanna see.

but I've never seen a booby yet fhats pissed me off

 

Ya know.... Once ya seen one set of boobies..

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ya pretty much wanna see em all

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The only reason hostess is going out of business is because their management is failing and the public has decided to buy something else to snack on instead of ding dongs. It's funny how some jump right to it's the unions fault they failed, are you suggesting the union forced the company to sign a contract? Managment is to blame no one else. Stay with the times or get out of the business, seems like they picked the latter doesn't it.

 

 

No I am suggesting that when the company came to its employees and said sales were down...costs were up....the boon was no longer there for the economy to cover the higher salaries and benefits and they would like to negotiate a compromise to allow them to stay in business and continue providing 18000 jobs...........that someone with common sense respond instead of a union boss saying no...you signed a contract. Many times those contracts are under duress....as the union will threaten a walkout if they dont agree to higher salaries and benefits...so while times are good they agree to save from losing millions and millions with shut down production lines. Happened in Detroit....happened in Georgetown at steel mill...happens all over. Economy tanks...sales drop significantly....costs go up even higher due to value of dollar and price of oil affecting everything from transportation to plastics.....but the employees (unions) want to keep making same salary even though economy and market wont support it.

 

That is what is being said.... Nobody said there was mismanagement...lots of companies are going out of business and not due to mismanagement...it is because the cost of doing business went way up and the profits went way down and not every company operates on a windfall of significant profit.

 

They should now come back and offer jobs without union support to anyone that wants a job... The unions having a grip on everything is a failure of free enterprise. They were there to ensure fair wages not over inflated wages and benefits. Just like in car industry...no reason a person with no education beyond 6th grade that stands on a line dropping bolts in a door hinge should be making more than a physician in this country and then still get full benefits upon retirement. That is ridiculous....I dont care who you are.

 

Yep, nobody made company sign contract back in the day other than maybe threats from union on striking and losing multi-millions of dollars fighting them. But many of those workers dont have a choice...some are pro union and join on their own...others join as many plants and areas are UNION ONLY and if you dont join you dont work. I feel sorry for those poor souls that were forced to go union and sit back and watch their careers, pensions, and now their livelihood get thrown away because they refused to compromise to SAVE ALL THEIR JOBS like the Teamsters agreed finally.

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I'm gonna miss Ho-Ho's ..... thankful little debbie is still around

Little Debbie is owned by Seventh Day Adventist. No religious posts Stu. Go to timeout.
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I like moon pies and cinnamon rolls....

 

did I say I like PIE yet?

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I hope those greedy fuckers starve to death. Both management and the union should be ashamed of themselves.

 

Hork

 

 

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