Well-There Goes Another 18,500 Jobs

[13BVET]

Hostess is done, and 18,500 jobs with it.

http://www.nbcdfw.com/news/national-international/NATL-Twinkies-Maker-Hostess-Going-Out-of-Business-179643161.html

Edited November 16, 2012 by 13BVET

[Elmo]

Union got a little too greedy...now, instead of getting a raise, they're out of a job.

On a side note, the comsumer base has changed in the last 10 years as people are starting to become more health conscience but Hostess hasn't adjusted one bit to meet these changes. To be honest, I can't remember the last time I bought a Hostess product.

[WNYBuckHunter]

You do realize its not just the Hostess brand. The company owns quite a few others. Wonder bread, Natures Best and some others that are now out of buisiness too. This is what union thugs do, feed at the trough until its run dry.

[DTG3k]

Announcing a shutdown seems like a real good way to bring the Union back to the table with lowered demands. Lets see if that is what is happening

[oneidacountyhunter]

Man I sure am gonna miss them twinkies, hope the same thing doesn't happen to my girl Little Debbie. Then I will have no choice but to loss weight!

[Elmo]

I stopped buying Wonderbread as well. Quality has really gone down hill. Every loaf I was buying was dry. Almost like school cafeteria bread. Now I buy Martin's Potatoe Bread and if not, then Pepper Ridge Farms.

Edited November 17, 2012 by Elmo

[GreeneHunter]

Are Twinkies on Ebay yet ?

[WNYBuckHunter]

[ELMER J. FUDD]

Who cares it's hunting season!

Sent from my BlackBerry 9630 using Tapatalk

[WNYBuckHunter]

Elmer, you didnt like the Zombieland reference?

[Dan92]

SNOBALLS!.. WHERE ARE THE TWINKIES!

[ELMER J. FUDD]

Oh no that's funny, I was kind of making a general reference to all political posts. although I have to admit I'm not privy to zombieland.

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[WNYBuckHunter]

Oh man, you gotta watch itI

[ants]

They're still gonna make Zingers.....right????!!!

[cmeontv32]

With any luck BIMBO (actual name of the company) bakeries will buy and continue to make Twinkies. Bimbo is huge in Central and South America and I think (not sure) is the largest bakery in the world.

[fasteddie]

If they ever stop making Moon Pies , the South will rebel !

[Sogaard]

http://www.huffingtonpost.com/2012/11/29/hostess-executive-bonuses_n_2210515.html

[Danny]

Union got a little too greedy...now, instead of getting a raise, they're out of a job.

On a side note, the comsumer base has changed in the last 10 years as people are starting to become more health conscience but Hostess hasn't adjusted one bit to meet these changes. To be honest, I can't remember the last time I bought a Hostess product.

Union got greedy??

to my knowledge the top 10 employees of Hostess account for 45% of the total salaries, but yes the other 18,490 employees were greedy... lol

[Culvercreek hunt club]

The top 10 didn't go on strike. They got what they deserve,.

[Sogaard]

Yeah, the union had some crazy demands, like not wanting an 8% pay cut.

[Culvercreek hunt club]

Now they have a 100% pay cut.....how did that work for them?

[Elmo]

Union got greedy??

to my knowledge the top 10 employees of Hostess account for 45% of the total salaries, but yes the other 18,490 employees were greedy... lol

So now instead they're out of work.

[Sogaard]

If you can't afford to live with an 8% pay cut, the difference between 8% and 100% is irrelevant, you have to get an new job either way.

The exec's also voted themselves raises during the same period.

[Elmo]

If I took a 8% pay cut, my friends and family will be getting some really cheap gift this year. If I took a 100% pay cut I'll be out in the streets.

Keep in mind, I'm not saying the top execs are innocent either. The reason Hostess has gotten into this whole mess has been decades of poor management and the inability to adapt to the changing market.

Edited November 29, 2012 by Elmo

[Sogaard]

Congratulations on being able to absorb such a hit with only minor setbacks. Some people aren't as fortunate. We are talking about ~$16 an hour jobs. We aren't talking about plumber or electrician unions here.

After eight months, the Teamsters eventually reached an agreement with the company. The union agreed to a contract that cut pay by 8 percent immediately — with that cut shrinking to 5 percent next year. The Teamster workers, most of whom drive trucks for Hostess, average about $20 an hour; the bakery union workers, $16 an hour.

The Teamsters contract reduced the company’s health contributions by 17 percent and suspended its pension contributions until 2015. The company had originally insisted on freezing the pension plan permanently and ceasing all contributions.

The Teamsters insisted on numerous concessions from management. The company eventually agreed to give Hostess’s unions two seats on its board, a 25 percent share of company stock and a $100 million claim in bankruptcy. Last March, the Teamsters helped push out Hostess’s former chief executive after the board proposed tripling his salary even as he was demanding steep concessions from the workers.

In September, the Teamsters members voted narrowly to approve the deal, 53 percent to 47 percent.

The bakery workers union took a far more adversarial stance.

After Hostess’s unions had agreed to more than $100 million in annual cost concessions during Hostess’s previous bankruptcy, the bakery union thought it made little sense to agree to further cuts. It feared a deal would pull down wages and benefits throughout the industry, without saving Hostess.

“Our consultant said the debt load on the company was too heavy, and that we would be back in bankruptcy and facing liquidation in 12 to 16 months from now, even if we took more concessions,” David B. Durkee, the union’s secretary-treasurer, said.

The company folded because it was poorly run, the Bakers Union's stance may have been the final straw, but it was far from the cause Hostess' problems.

EDIT: Elmo - you edited your post and added that last bit while I was writing mine.

Edited November 29, 2012 by Sogaard