Twinkies Maker Hostess Going Out of Business Unions did it again, 18,000 unemployed
$$*gat*$$ BL39
2012/11/16 13:30:09
I think it is important that we consistently blog n expose the underbelly of this very corrupt gov. The Dems n Unions are bed buddies, lots of $$$$ for political favors..Dirty $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$...
flows though the underground rivers in DC, making polis very rich as the people perish. Business are throwing in the towel, they see the graphics on the wall.. Obama n Dems want to destroy Capitalism..
We keep telling ppl, Obama, the Dem-rat party will the destroy the poor and middle class ..
The rich will be fine..
Please post links to new unemployment n buisness closing around the USA..
God speed Patriots
Hostess, 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.
In an interview with Fox Business, CEO Gregory Rayburn said many workers had already crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined.
"The problem is we don't have enough crossing those lines to maintain normal production," said Rayburn, who first joined Hostess earlier this year as a restructuring expert.
Hostess said that production at about a dozen of the company's 33 plants had been seriously affected by the strike. Three plants were closed earlier this week.
The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess had argued that workers must make concessions for it to exit bankruptcy and improve its financial position.
The company, founded in 1930, was fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.
If the motion is granted, Hostess would begin closing operations as early as Tuesday.
"Most employees who lose their jobs should be eligible for government-provided unemployment benefits," Hostess said.
Copyright Associated Press / NBC 5 Dallas-Fort Worth
flows though the underground rivers in DC, making polis very rich as the people perish. Business are throwing in the towel, they see the graphics on the wall.. Obama n Dems want to destroy Capitalism..
We keep telling ppl, Obama, the Dem-rat party will the destroy the poor and middle class ..
The rich will be fine..
Please post links to new unemployment n buisness closing around the USA..
God speed Patriots
Hostess, 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.
In an interview with Fox Business, CEO Gregory Rayburn said many workers had already crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined.
"The problem is we don't have enough crossing those lines to maintain normal production," said Rayburn, who first joined Hostess earlier this year as a restructuring expert.
Hostess said that production at about a dozen of the company's 33 plants had been seriously affected by the strike. Three plants were closed earlier this week.
The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess had argued that workers must make concessions for it to exit bankruptcy and improve its financial position.
The company, founded in 1930, was fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.
If the motion is granted, Hostess would begin closing operations as early as Tuesday.
"Most employees who lose their jobs should be eligible for government-provided unemployment benefits," Hostess said.
Copyright Associated Press / NBC 5 Dallas-Fort Worth
Top Opinion
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Kattie 2012/11/17 04:33:27
+57Yes, and the layoff bomb has not even come yet. Sad thing is, this was totally avoidable. BCTGM decided to hold the line, even when the Teamsters told the subsidiary union to back off, and warned that the threat of liquidation was NOT an empty threat or a negotiation tactic, but a certain outcome if the workers continued their strike. It's not just Twinkies that are going away, it will also be Wonder Bread, Drake's Cakes, Nature's Pride, and my favorite, Dolly Madison Ice Cream. They had plants and facilities all over our "once" (before 2008) great country. Also lost will be Delivery Jobs, and the retail profits. There were workers willing to cross the picket line for an 8% wage cut, and a contribution to healthcare and pension. A spokesperson for the Teamsters said that he would totally understand this. It all goes back to me what my father said about union membership, and that is once you sign away control of your economic liberty to a union, you are going to learn the lesson of forced paternity. That is what a union is. Now 18,000+ are going to lose their job while the union bosses will keep theirs.
The port in Tacoma same thing.
Fish packaging plant in Mn same thing.
What makes no sense is striking for wages and benefits when you KNOW the company is in trouble. I do not understand the mentality of those people, except that through union contracts many union members are supposed to have a years salary is they lose their jobs because of being on strike. However, those that make it though the rigourous process of trying to get that income usually find it an empty promise because the union funds are usually dry.
Unions have been the downfall of many businesses. I have watched first hand as grocery stores and other businesess were unionized, and within a year or two the businesses were forced to close.
Receive nothing opposed to working for something.
18,000 less dues paying members to collect from.
Take a number for the welfare and food stamp line.
No wonder why they support Obama.
Bureaucrats Paid $250,000 Feed Outcry Over College Costs
The more on welfare the more of an army he has.. Until they turn on his a@@
Stupid, stupid people.
Bureaucrats Paid $250,000 Feed Outcry Over College Costs