Hostess Brands Says It Will Liquidate

[Valmy]

We have a good friend who worked at one of their plants. The union simply refused to negotiate. Word is they were willing to sacrifice their Hostess employees to strengthen their position elsewhere.

Also apparently the teamsters were crossing the picket lines.

We do?

You couldn't have asked him this question in person?

We do!

Uh oh

[merithyn]

We do?

You couldn't have asked him this question in person?

I'm at work; he's at school. So no.

We do!

Uh oh

Well, I thought it was sad when I heard about it, but I didn't realize that it was the same company that our friend has been talking about on FB. The situation is ugly, and the union is completely and totally to blame for this whole mess. I'm not generally anti-union, but in this case, yeah, they should rot in hell.

[11B4V]

Fucking unions. 

Damn straight.

Fuck the Unions

[Valmy]

Man talk about a raw deal.  You pay a bunch of dues to an organization that then sacrifices your job for leverage elsewhere.

[Ed Anger]

Uh oh. The twins favorite snack food in danger. They will not be pleased when no twinkies are available.

Pray for me.

[DGuller]

Uh oh. The twins favorite snack food in danger. They will not be pleased when no twinkies are available.

Pray for me.

And pray for the twins if they do remain available.

[Ed Anger]

They are part of a balanced lunch.

[Eddie Teach]

Twinkies and valium?

[CountDeMoney]

Man talk about a raw deal.  You pay a bunch of dues to an organization that then sacrifices your job for leverage elsewhere.

Hostess has been on the ropes for a decade, and this isn't the first time it's had to file for bankruptcy.

But go ahead, blame the union for a company that's not publicly traded.  It's easier that way.

[merithyn]

Hostess has been on the ropes for a decade, and this isn't the first time it's had to file for bankruptcy.

But go ahead, blame the union for a company that's not publicly traded.  It's easier that way.

In this case, it's the truth. The employees were ready to deal months ago, but the union refused to do it. Now, the union is throwing Hostess down the river in order to protect their interests elsewhere.

[CountDeMoney]

In this case, it's the truth. The employees were ready to deal months ago, but the union refused to do it. Now, the union is throwing Hostess down the river in order to protect their interests elsewhere.

They started the strike in November.  The company filed for Chapter 11 in January.  Hostess had a lot more systemic issues in its model than the Teamsters.

[Ed Anger]

Twinkies and valium?

Sutafed.

[Legbiter]

Thinner Americans then?

[merithyn]

They started the strike in November.  The company filed for Chapter 11 in January.  Hostess had a lot more systemic issues in its model than the Teamsters.

Yes, but the employees were willing to do what they could to prevent complete closure. The union wouldn't let them. On top of that, though the strike started in November, the union and company owners have been discussing this stuff for over a year.

When the employees are willing to take a drastic pay-cut with even more drastic cuts to benefits in order to at least have a job but the union won't let them, well, yeah, I blame the union.

[CountDeMoney]

When the employees are willing to take a drastic pay-cut with even more drastic cuts to benefits in order to at least have a job but the union won't let them, well, yeah, I blame the union.

5,000 employees spread out over multiple states out of 18,000+ employees does not break a company: the "private equity" firm that came in after Hostess' leadership hauled ass and filed does.
An 8% salary cut, cutting healthcare and retirement contributions?  On top of the concessions from the last time?

But no, management still gets theirs:

he company is also seeking permission to pay a group of 19 managers bonuses ranging from 25% to 75% of their annual base compensation. Those payments would total up to $1.75 million, the company said. In addition, it wants to pay 3,200 employees bonuses equal to 25% of what they will earn from Friday until their wind-down-related duties are completed. Those payments would total $4.36 million.

19 managers share $1.75M.  But they need 8% salary cut.  You should've voted for Romney, after all; you support the model.  Sucker.