Hostess Dies Again, 18,500 out of Work: Bonus Twinkie Recipe!

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While I was at work yesterday, a court ordered mediation failed to produce an agreement that would save Hostess from the liquidation chopping block.   So, once again, Hostess is dead.  Michelle Malkin has more…

It didn’t happen:

Hostess Brands lived to die another day.

The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with its second biggest union. As a result, Hostess plans to continue with a hearing on Wednesday in which a bankruptcy court judge will decide if the company can shutter its operations.

The renewed talks between Hostess and The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union came after the company declared last week that it would move to wind down its business and start selling off its assets in bankruptcy court. The company cited a crippling strike that was started on Nov. 9 by the union, which represents 30 percent of Hostess workers.

Once again, Hostess has died.  And, to repeat, I hope that the people that buy the company, or the rights to the specific products move to a right-to-work state, and leave the union goons standing in the wreckage that they created.

Since a Thanksgiving is tomorrow, here is a Twinkie Recipe…

 

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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.

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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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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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