Hostess may go bankrupt: Twinkies no more?

" but at some point it is rational for workers to refuse further concessions to a failed management team. "
Indeed it is and now they have no job and neither do the other 12,300 people

the best brands will be back BUT in non union states

I say again
the taxpayers should NOT give one cent of welfare to the bakers union members.
if it was such a horrid deal it is surprising the MUCH larger Teamsters union there voted for it

 

This argument is stupid.

Money is a limited commodity.
Management wants more money, so they minimize cost (employees).
Labor wants more money, so they hire union bosses to give them leverage.
Sometimes unions win, sometimes management wins, but let's not act like this is some sort of tragedy caused by one or the other just because of a delay in Ho-Ho production. Americans are clever enough to find something else just as awesome to stuff their faces with.

 

I didn't know and didn't see it mentioned here that this was Hostess second bankruptcy in 10 years. They were in backruptcy proceedings from 2003-2009. I don't know what the success rate is for a company reorganizing and then going on to be successful, but it's probably pretty low.

 

Mr. Deez, I think Little Debbie is owned by Hostess.

 

You know, I feel kind of responsible. I haven't eaten a twinkie or a ding dong is more than 20 years. They were pretty tasty -- not sure why I quit. And a banana flip was heavenly. If I ever see a banana flip in a store again I think I'll buy it and ride my bike a couple of extra miles the next day.

 

According to this article in the Christian Science Monitor, Congress, not the unions, is responsible for Hostess' demise:

The Link

 

So much for free markets

 

It appears that Twinkies will likely survive this. Sadly, I prefer Zingers so I could care less.

 

So Frank Hurt, head of the bakers unions that voted to turn down the Hostess offer said he knew that vote would cause hostess to **** down, He of course still gets 240k a year.

Now according to ABC Hostess has gotten really good offers, the best so far is from Grupo Bombo. mexico.

so the unions's vote caused the loss of nearly 19,000 jobs and may well have driven the jobs off shore.The Link
"Frank Hurt, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union told the Wall Street Journal that there’s “more than a good chance” someone would swoop in to buy the company’s 30 brands and preserve jobs. He said that Twinkies and Wonder Bread are popular and they will be “produced somewhere, some time and by our members.”


Frank?
Are your union members ready to ove to mexico?

Unions must be so proud.
and BO will do everything he can to help them.

sometimes the stupidilty of people concerning their own circumstances is stunning.

 

Does Hostess pay more than any other bakery or an company using sugar in USA?

 

The Private Equity firms will win out in the end. The 30 brands within Hostess will be sold for a significant sum. Brands alone have value...unfortunately the workers do not in this economy.

If the unions were smart they'd tie their compensation packages to brand equity.

 

BI"
AS usual you didn't answer the question.
should I ask it again?
ok
Does Hostess pay more for their sugar than any other bakery company buying sugar in USA?

You know the answer but you will try to deflect it.

 

Union Contract Hit

Interesting read from the perspective of someone who actually has to mind the balance sheet. I wonder if there are any rational articles from the union on why they took down the company.

 

bewdoc
If the information in this article is true the union and union members don't deserve to keep any job

these points stuck our among many other incredibile points
'Hostess paid out almost $100 million in health benefits for retirees last year, but over half of it covered workers who never had worked at Hostess. The Teamsters’ onerous and antiquated “multi-employer pension plan” foists the pension obligations of a bankrupt company on to the balance sheets of surviving rivals—ensuring a steady death spiral in any declining industry. A similar “MEPP” almost killed YRC, one of the largest trucking companies.

--Union rules forced Hostess to run separate truck fleets for delivering bread vs. sweets. A sweets driver, serving a 7-11 store, was forbidden from restocking shelves with breads already delivered and waiting in the back—he had to call for a bread driver to swing by and handle and handle.

--The union restrictions on the 5,500 distribution routes at Hostess made it unprofitable to serve tiny outlets, yet Hostess was barred from using smaller, sleeker—and non-union—distributors.



How could anyone justify this crap?

Well BO can and will try to help unions increase membership as a way to payback what they did for him.