Twinkies to Return, Made by Non-Union Labor

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It seems that the union priced themselves out of the market.

New maker of Twinkies: Non-union workers will be used to restart plants

As happens so often, unions shops go under, and are replaced by non-union labor.  Of course, that often happens somewhere else, so the whole areas suffer for the union boss’s greed.

I expect thuggery.


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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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Is it Twinkie The Kid’s Last Roundup? Hostess Unions May Vote Themselves out of Their Jobs

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A few months ago, we covered that Hostess, the  company that makes Twinkies, Ding Dongs, and the like, was headed towards bankruptcy, and the worker’s unions were a large part of the problem.  Basically, the company needs to re-do it’s labor contracts, or it’s goodbye Wonder  Bread.  It’s apparently not going so well, as Labor Union Report is claiming…

Hostess Chief Executive Gregory Rayburn last week told Dow Jones that the iconic maker of Wonder bread and Ho Hos will shut down its operations and sell off its brands, plants and other assets immediately if members of the two biggest unions don’t ratify the new contracts. At Tuesday’s court hearing, Hostess attorney Heather Lennox stressed that the company’s future is still hanging in the balance.

The officers of the two primary unions involved, the Teamsters and the Bakery, Confectionery and Tobacco Workers have given their members the right to vote on the offers, a move University of California, Berkeley, Prof. Harley Shaiken, says unions are usually reluctant to do.

“They’re giving it to the workers and essentially saying, ‘Look, this is likely the best we can do.”

Unfortunately, while the Teamsters’ leaders have stayed neutral while putting it to a vote, it appears the bosses at the bakers’ union are not.

Via the New York Post:

With the new, lower-cost contracts in hand, Hostess would have an easier time getting its reorganization plan approved, saving the company.

The Teamsters, like the bakers union, which together represent 17,000 Hostess workers, will start counting votes on the contract proposal as soon as tomorrow, sources said.

The bakers union locals each act independently. In a voice vote, 24 of 25 plants so far have rejected the proposed pact, sources said.

Voting in that manner, a source said, shows that the Bakery leadership is interested in rallying the troops against the deal. “Once I knew it was a voice vote, I knew they were going to reject.”

The proposed labor pact calls for an 8 percent first-year salary and commission cut, sources said.

Bakery union President Frank Hurt has come out against the proposal.

“I would never sign this piece of crap,” he wrote in a union publication a few weeks back, speaking of the Hostess labor proposal. [Emphasis added.]

The first thing that jumped out at me is that the Union bosses had to give the workers the right to vote?  Is that “what democracy looks like?”  Given that unions are communist organizations, yes it is.  In a communist state, the government has to give permission for anything to happen.  In a union, apparently, workers only have the  right to vote when the bosses permit it.  You know, because that’s “what democracy looks like!”

Then, we see that the workers are likely to reject the contract proposals, thereby voting themselves out of a job.  So then, the union bosses will still have their jobs, and power.  But, the workers will have nothing.

Come to think of it, that’s yet another comparison to a communist state.

In the end, the union are just a microcosm of a communist state.  The bosses assign rights, and when the poo hits the fan, the workers lose.

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Hostess Files for Bankruptcy: Unions Part of the Problem

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After Kodak declared bankruptcy last month, another iconic American company has filed for bankruptcy protection.  Hostess, the makers of Twinkies, Ho-Ho’s, and Wonderbread, has filed for protection.  Here is some more from WSJ.

The privately held Irving, Texas, company’s move marks the second significant court restructuring in the past several years. In a statement, Hostess said the current cost structure “is not competitive, primarily due to legacy pension and medical benefit obligations and restrictive work rules.” It said it would be able to maintain operations thanks to a $75 million financing commitment from a group of lenders. In bankruptcy, Hostess said it plans to continue negotiating with 12 unions to modify the collective-bargaining agreements governing the employment of its union workers, who comprise 83% of its approximately 19,000 employees.

So, once again, we see organized labor increasing costs until they threaten to kill the host (no pun intended).

The majority—nearly 92%—of Hostess’ union employees belong to one of two unions: the International Brotherhood of Teamsters or the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union. “While no agreement has been reached to date, the Teamsters Union remains committed to working with all stakeholders during the bankruptcy to find a mutually agreeable solution, if possible,” said Dennis Raymond, director of the Teamsters Bakery and Laundry Conference, in a statement.

The “if possible” in the last paragraph is kind of alarming.  If it not possible, 19,000 people might lose their jobs.  But, as I have said repeatedly, the union bosses looks out for their own power and if that means that some members are sacrificed for that, so be it. Hopefully, the folks at Hostess will still have their jobs.  I can’t bash them, as most of them really didn’t have a choice as to whether or not to join the union.

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