Bye Bye Hostess - Corporate Greed or Greedy Unions? Share your thoughts!

http://news.yahoo.com/bctgm-members-initiate-national-strike-hostess-brands-211700642.html

BCTGM Members Initiate National Strike at Hostess Brands

KENSINGTON, Md., Nov. 9, 2012 /PRNewswire-USNewswire/ -- In an inspiring display of courage and conviction, members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) have gone on strike against Hostess Brands beginning Friday, November 9. Workers at other Hostess plant locations are honoring picket lines established by striking local unions. More plants may strike or honor the strike in other Hostess locations within the coming days.

These workers, many of whom have worked at Hostess and its predecessor companies for decades, struck in response to the company's unilateral imposition of a horrendous contract that was rejected by 92 percent of the union's Hostess members in September.

"Hostess Brands is making a mockery of the labor relations system that has been in place for nearly 100 years. Our members are not just striking for themselves, but for all unionized workers across North America who are covered by collective bargaining agreements," states BCTGM International President Frank Hurt.

The contract calls for extreme wage and benefit cuts which amount to 27- 32% overall, with an 8% wage reduction imposed immediately. The company unilaterally ceased making contributions, required by their union contracts, to the workers' pensions in July 2011. Hostess has also imposed draconian cuts in health benefits and eliminated the eight-hour workday.

Hostess Brands is in bankruptcy for the second time in eight years. Since the first bankruptcy in 2004, BCTGM members across the country have taken dramatic wage and benefit concessions and watched as 21 Hostess plants were shut down and thousands of jobs lost. At the time of the first bankruptcy, Hostess workers were assured by management that money saved via concessions or plant closings would help make the company stronger, more vibrant, and more competitive.

Instead, helpless Hostess employees watched as money that was supposed to go towards capital investment, product development, plant improvement and new equipment went to executive bonuses and payouts to the hedge funds that own Hostess Brands. They watched as the company illegally withdrew from all Taft-Hartley pension plans, saving more than $50 million in the first five months. The BCTGM learned that the then Hostess CEO was to be awarded a 300% raise, and at least nine other top executives were to receive raises ranging between 35% and 80%.

Since the company ceased making contractually obligated payments to the Hostess workers' pensions in July 2011, it has pocketed approximately $160 million – money earned by and owed to its dedicated workforce.

Striking members know that the Wall Street investors currently in control of the company have no intention of building a world class wholesale bread and cake company. They will simply take the money from the workers' severe concessions and the sale of assets, pay themselves and then liquidate the company.

The company's business plan, when reviewed by a highly-respected financial analyst retained by the company, was determined to have little or no chance of succeeding in saving Hostess.

The current CEO, Greg Rayburn, was originally brought on as a consultant because of his expertise in corporate liquidations. He has absolutely no experience running a baking company and the Wall Street investors that own the company have absolutely no interest of rebuilding the baking business.

"Our members have fought hard for decades through the collective bargaining process to build a decent standard of living for themselves and their families. The deplorable actions taken by Hostess would take our members back to the workplace standards of the 1950's.

"Our members have now said NO to Hostess and the Wall Street investors in the only means available to them, the strike. The BCTGM International Union stands in full and uncompromising support of our striking members," concludes Hurt.

The BCTGM represents more than 80,000 workers in the baking, food processing, grain milling and tobacco industries in the United States and Canada.

I worked at Hostess for 3 weeks you are expected to go at the speed of light on the lines.

That's crazy Jamn.

It seems a lot of people are blaming the Union over this company closing. Fact is Hostess was in financial trouble back in the early 2000's due to mismanaging their money. I don't understand how a company can ask their lower paid employees to take a pay cut and cut in benefits due to the company not doing well financially, all the while giving the executives a 35% to 85% pay raise. I feel bad for those 18,000 employees who are now out of a job. Those executives and their million dollar raises will do fine and live comfy cushy lives, they will not be the ones standing in the unemployment line.

Hostess has been in a jam for awhile now,after all who needs to buy fresh twinkies when the originals last for years without deteriorating

I will miss the snowballs though I like them,the neighbour will miss the ding dongs that is her every morning breakfast.

It has been years since I've bought any hostess products. They all taste the same to me with no satisfaction.

I feel sorry for all of those who lost their jobs but I never ate much of that crap anyways. Corporate and union greed both seem responsable.

Whoops, thought the subject "Hostess" was about potato chips that's what I did when I worked there.
They should have found ways to make the twinkies etc. healthier.
Pooper your neighbour eats them for breakfast

Yorks I found a site to make your own snoballs and other hostess treats.

http://www.sheknows.com/food-and-recipes/articles/852703/dont-suffer-from-hostess-brands-financial-woes-make-your-own-twinkies

Yummy Bullet thank you

The Snowball cupcakes are the only thing I really like that hostess makes

kbullet wrote:

Yorks I found a site to make your own snoballs and other hostess treats.

http://www.sheknows.com/food-and-recipes/articles/852703/dont-suffer-from-hostess-brands-financial-woes-make-your-own-twinkies

Ooooooooooooooooh, that's dangerous.

If you have to run to bankruptcy court, not once but twice, and can't keep a business running successfully, then you can't afford million dollar bonuses to your already greedy and rich executives. Plus these executives just had a huge million dollar bonus not that long ago. SMDH!

http://www.washingtonpost.com/business/hostess-moves-to-liquidate-as-us-seeks-trustee-control/2012/11/19/46e98922-326d-11e2-92f0-496af208bf23_story.html

Hostess, maker of Twinkies, seeks permission to pay manager bonuses



By Dawn McCarty, David McLaughlin and Phil Milford,

Updated: Monday, November 19, 1:01 PM



Nov. 19 (Bloomberg) -- Hostess Brands Inc., the bankrupt baker of Twinkies and Wonder bread, is seeking permission to pay bonuses to key managers while closing operations that will leave most of its 18,500 workers unemployed as it begins a liquidation that may attract bids from private-equity firms and rivals.

U.S. Bankruptcy Judge Robert Drain is to consider Hostess’s request to close its distribution centers and 36 bakeries at a hearing today in White Plains, New York. Hostess said Nov. 16 that it would shut down, claiming that a weeklong strike by its bakers’ union forced liquidation. The union blamed management’s concession demands, while some employees blamed both sides.

The U.S. trustee, a Justice Department official responsible for protecting creditors, today asked Drain to take control of the liquidation away from the company. U.S. Trustee Tracy Hope Davis asked the judge to convert the case to a Chapter 7 from Chapter 11 bankruptcy, based partly on the company’s intent to pay bonuses, and appoint a trustee to supervise the wind-down.

Hostess officials “have not demonstrated that the insider bonuses are permissible,” Davis wrote in a court filing.

In seeking court permission for its demise, Hostess said it wants to pay as much as $1.75 million in incentive bonuses to 19 senior managers during the liquidation. Hostess is asking the judge to approve its plan -- which would result in the firing of thousands of employees -- to shut down 36 bakeries, 242 depots, 216 retail stores, and 311 hybrid depot-store facilities, according to court filings. There are 58 other leased or owned sites used for storage, warehousing of products or parking.

‘Intensive’ Planning

The process requires “intensive” planning, staffing and funding, the company said. A fire-sale liquidation would damage equipment and result in improper disposal of waste materials.

It’s “not a simple matter of turning off the lights and shutting the doors,” Hostess said in court papers.

The baker estimated that shutting the plants will cost $17.6 million in the next three months. The plants have about $29 million worth of excess product ingredients, Hostess said.

About $6.9 million will be spent to close depots, while $8.8 million will be used to idle retail stores and $8.1 million will go to shutting corporate offices, according to a court filing. Perishable baked goods at retail stores will be sold at going-out-of-business sales, donated to charity or destroyed, Hostess said.

‘Iconic Brands’

Potential bidder C. Dean Metropoulos & Co., owner of Pabst Brewing Co., said it may seek to purchase Hostess’s “iconic brands,” which include Dolly Madison, Drake’s, Merita and Butternut. Flowers Foods Inc., maker of Nature’s Own bread and Tastykake snacks, also may pursue some of its rival’s assets, wrote William Chappell, an analyst with SunTrust Robinson Humphrey, in a note to investors last week.

Flowers is “one of the most eligible acquirers” of Hostess assets and brands, Amit Sharma, an analyst at BMO Capital Markets Corp. in New York, said in a separate note, citing Flowers’ management, acquisitions and “relatively small” overlap with Hostess’s major markets and products. Keith Hancock, a spokesman for Thomasville, Georgia-based Flowers, didn’t say whether it would bid.

Someone on FB posted that she was buying a buttload of twinkies and stashing them in the freezer...I mean really? They are just twinkies..junk.

Tell her she can store them on her pantry because those suckers never expire...

kbullet wrote:

Tell her she can store them on her pantry because those suckers never expire...

lol..someone already did.

Looks like they aren't closing after all seems another company is interested in the business and wants to save the damn Twinkie

yorkiemom wrote:

Looks like they aren't closing after all seems another company is interested in the business and wants to save the damn Twinkie

That's a good thing. I would hate to see 18,000 employees lose their jobs over this. Your neighbour will now not have to go through Hostess withdrawal.

I think she would truely die if she didn't have her ding dong for breakfast every morning. It has been her routine for 20 years

Get her one of these:



She can have a ding dong everytime someone comes over.

It appears Hostess is closing after all, they couldn't come to an agreement.

According to the news tonight they will let 18,000 employess go but they will sell the name to other companies. Not sure how selling the name helps the people who are jobless

There's one company who said that they will purchase Hostess and keep the 18,000 employees but is not willing to pay the asking price Hostess is asking for to sell the company. They want it for much much less.

I just hope that someone buys it and keeps these people employed