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Hostess to Liquidate Because of Union: 18,500 Lose Their Jobs

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Well, it was announced yesterday morning.  Hostess, the maker of such foods as Twinkies, Ho-Ho’s, and Wonder Bread, is liquidating all of their assets.  The cause is simple and obvious-organized labor.  Michelle Malkin has the details…

This morning Hostess announced it was closing down. The union rejected a proposed 8 percent wage cut, and the end result is a 100 percent wage cut for over 18,000 workers:

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.

The Baker’s Union, that prompted the liquidation, represented only 5000 of the 18,500 Hostess employees.  However, they chose for all, and due to their greed, thousands of others lost their jobs.

Bob Belvedere, the proprietor of TCOTS, has the statement from the company…

From the company’s website statement:

Hostess Brands Inc. today announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products. The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the Company’s largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the Company’s ability to produce and deliver products at multiple facilities.

William has more details here, including an aggregation of comment from the Rightosphere.

It has been suggested that the  union did this in the hopes that another company would purchase Hostess’s assets, and shower them with unsustainable wages and benefits.  However, if I were to purchase Hostess, I would buy the “intellectual property,” meaning the trademarks and recipes for the Hostess products.  Then, I’d move to the nearest right-to-work states, and setup production.  The reasoning is simple, if the union was willing to take out Hostess, what or who would stop them from doing that to me?  If they did it before, they would do it again.

I saw this happen while growing up in the rust belt.  Unions helped kill off the steel mills and coal mines that made SW PA an economic powerhouse.  And, in fact, there are still resources to make steel there, as well as the rivers to move the raw materials.  However, no one will move back to that area to manufacture on such a scale.  Only a fool would build in an area where unions so destroyed the previous industries.

So, I think that the Baker’s union should be allowed to stand in the scorched Earth of their own creation.  Let them explain to their families how they fired themselves.

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  • http://conservativesonfire.wordpress.com Jim at Conservatives on Fire

    Obviously you don’t understand, Matt. It’s all about soidarity. I’m not sure how they pay the bills with solidarity.

  • http://alwaysonwatch3.blogspot.com/ Always On Watch

    Union thuggery — I expect more of it to break out as the unions agitate for the fundamental transformation of America.

    America is devolving. This is painful to watch.

    BTW, Hostess made much more than Twinkies. For example, Hostess also made Beefsteak Rye Bread — my favorite off-the-shelf brand of seeded rye bread.

  • http://americaswatchtower.com Steve Dennis

    I hope these people are happy and proud of themselves for taking down ?big snack food.” I guess they thought it would be better for everbody to take a 100% paycut then to work for less money and save these jobs. Even the Teamsters Union agreed to the terms, I guess I will never understand this mindset. I read on Breitbart that many of these people are releaved it is all over; I guess the stress of having to work everyday was too much for them to handle.