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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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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