Twinkie the Kid on Life Support: Bakers Union Poised to Shutter Hostess Permanently

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Over the last year, we’ve covered the fact that Twinkie the Kid is on life support.  The Hostess company required a new agreement from the Baker’s Union to get bankruptcy protection. Unfortunately, several hundred of the Bakers chose to fire themselves this week, closing three facilities permanently.  Apparently, the rest of the Bakers seem intent on putting themselves, and all other employees, out of work.  Mish’s Global economic Trend Analysis has the rest…

It’s do or die for 18,000 Hostess workers including 5,000 in the bakers’ union.

Hostess, the maker of Twinkies, Ding-Dongs, Ho-Ho’s, and Wonder Bread has given the union a firm order to accept wage cuts else the company will liquidate.

Only fools would voluntarily vote for liquidation liquidation, but with the clock ticking down to mere hours to come to agreement, it appears the fools will win the day. 

Please consider Hostess to liquidate if bakers’ strike continues through Thursday. Hostess Brands said Wednesday that it will go into liquidation unless bakers striking in protest against a new contract imposed in bankruptcy court return to work by the end of the day Thursday. 

“We simply do not have the financial resources to survive an ongoing national strike,” Hostess CEO Greg Rayburn said in a statement.

The liquidation would result in Hostess’ nearly 18,000 workers losing their jobs. The bakers’ union represents around 5,000.

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The union did not immediately respond to a request for comment Wednesday, but has called the concessions demanded in the new contract “outrageous.”

“Our members are on strike because they have had enough,” bakers’ union president Frank Hurt said in a statement Tuesday. “They are not willing to take draconian wage and benefit cuts on top of the significant concessions they made in 2004 and give up their pension so that the Wall Street vulture capitalists in control of this company can walk away with millions of dollars.”

The part of this that really gets to me is that out of the 18,000 plus workers at Hostess, only 5000 get to make the choice for the rest.  But that is socialism for you.  The few decides the fate of the many, and then, they call it “democracy.”

Moe Lane at Redstate has even more…

And how serious is this threat? This serious:

The Teamsters meanwhile are urging the smaller union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company’s books, the Teamsters say that Hostess’ warning of liquidation is “not an empty threat or a negotiating tactic” but a certain outcome if workers continue striking.

There’s almost 19 thousand jobs at stake, here, and as far anybody can tell the striking unions seem to be operating under the assumption that a nebulous somebody will swoop in to restart production, once Hostess is liquidated.  This is considered to be unlikely by pretty much everybody else involved in the situation, and by “unlikely” I mean “barking mad insane.” It’s pretty diagnostic that the Teamsters – which is a union that is not unfamiliar with hardball tactics – is trying to wave off the strikers.  It’s even more diagnostic that the strikers seem absolutely determined to run the company into the ground, and probably expect applause afterward.

So, either the Baker’s Union is full of idiots, or they are working on behalf of a “nebulous somebody” out there that is going to get the company at a fire sale price, and then treat the unions bosses to some cash?  There is, of course, no evidence of that, but it sure does smell, doesn’t it?

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Hostess Workers Fire Themselves: Strike Causes Three Bakeries to Close

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Earlier this year, we covered that Hostess, the iconic brand that makes such treats as Twinkies, was going bankrupt.  At the top of the list of causes was  high labor costs.  The company had stated that if the union went on strike, the company would be liquidated.  But, when the company made an offer to save the company, the workers decided that they didn’t want their jobs after all.  The Gateway Pundit has more…

Over 600 workers will no longer have a job.
Nice work bakers’ union.

St. Louis Today
 reported:

Hostess Brands permanently closed three bakeries Monday, including a plant in St. Louis where 365 jobs were cut, in response to a bakers’ union strike that started Friday.

The bankrupt maker of Twinkies and Wonder bread said it’s trying to avert liquidating the entire company, and it shuttered three plants that were no longer able to produce and deliver products because of picket lines. The other plant closures are in Seattle and Cincinnati, where a combined 262 jobs were cut.

“We deeply regret this decision, but we have repeatedly explained that we will close facilities that are no longer able to produce and deliver products because of a work stoppage — and that we will close the entire company if widespread strikes cripple our business,” Hostess CEO Gregory Rayburn said in a statement.

Wholesale baker Hostess Brands, which is based in Irving, Texas, filed for bankruptcy in January and has fought with labor groups over contract changes throughout the year.

Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike beginning on Friday at plants across the country, including Oakland, Calif.; Seattle; and Orlando, Fla. The union represents about 5,680 of Hostess’ 18,300 employees.

On Monday morning, more than two dozen Hostess workers stood on a sidewalk outside the St. Louis bakery on North Broadway, refusing to cross the picket line set by striking bakers’ union members from Columbus, Ind. Some of Hostess’ St. Louis employees said they had worked at the plant that makes Hostess cakes and Nature’s Pride and Wonder breads for decades but were honoring the picket line to protest cuts to their salaries and other benefits.

The St. Louis Bakers Union Local 4 represents 200 employees at the plant at 6301 North Broadway.

So, when choosing between having a job, and not having a job, the union men chose to be unemployed?  That seems to be the logic-or lack thereof.

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ADA Lawsuit Closes Ford’s Real Hamburgers

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A law, namely the ADA closed down a restaurant named Ford’s Real Hamburgers.  The Blaze has the details.  Discussion to follow…

A decades-old Sacramento, Calif. burger joint is shutting its doors for being out of compliance with the Americans with Disabilities Act because the owner says he can’t afford to bring it up to code.

Ford’s Real Hamburgers has been slinging burgers, fries and shakes for years, but was hit hard in the recession. Now, KTXL-TV is reporting that a local attorney who makes his living filing ADA cases — many on his own behalf — is suing the restaurant — and Ford‘s can’t keep up.

“We scrimped and saved and cut down the staff. I’m down to six employees,” owner Hank Vereschzagin told KTXL.

So, we have a restaurant closing, employees losing their jobs, a man losing his livelihood, all because one man makes a living suing businesses.  In what kind of reality is this possible.  People have families to feed, and one man can put them all out of work?  Can one law do this?  The answer is apparently yes.

In other words, because one man didn’t feel that he could enjoy the restaurant  no one else can either…ever!

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