Strike when a company's already in bankruptcy and this is the result....
Quote:
Hostess to close, cites nationwide worker strike
November 16, 2012 RSS Feed Print
By TOM MURPHY, Associated Press
Hostess, the maker of Twinkies and Wonder Bread, plans to go out of business, lay off its 18,500 workers and sell its snack cake and bread brands.
The Irving, Texas, company said a nationwide strike crippled its ability to make and deliver its products, which also include Ding Dongs, Ho Ho's and Home Pride bread.
Hostess suspended bakery operations at all its factories and said its stores will remain open for several days to sell already-baked products.
The company had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening. The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
"Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," CEO Gregory F. Rayburn said in a letter to employees posted on the company website.
He added that all employees will eventually lose their jobs, "some sooner than others."
"Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the (company) can offer you at this time," Rayburn wrote.
Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting in September a contract offer that cut wages and benefits. Hostess said Friday the company is unprofitable "under its current cost structure, much of which is determined by union wages and pension costs."
A union representative did not immediately return a call from The Associated Press seeking comment on the company's announcement.
Hostess has said that production at about a dozen of the company's 33 plants has been seriously affected by the strike. Three plants were closed earlier this week.
Hostess had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters.
The company, founded in 1930, was fighting battles beyond labor costs. 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.
How many of the employees are kicking themselves in the ass this morning?
Vehicle: '98 SLK230; '06 Porsche Cayenne; '06 Sierra 1500
Location: Parowan, Utah
Posts: 3,542
The union got what it deserved. "All or nuthin'". They got nuthin'.
I doubt that these vile little cakes (which I like now and then) will totally disappear. Someone will buy the name - and maybe improve the product.
If it was a court ordered contract, and the Union turned it down, can the Union leaders be charged with contempt of court?
So from what I understand about 5000 union workers and about 8000 non-union workers are losing their jobs.
How many Union Leaders are out of work?
Seems to me having them negotiate for you and expecting good results is very similar to having politicians decide how to spend tax money and expecting efficiency. e
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