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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
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  • Kattie 2012/11/17 04:33:27
    Kattie
    +57
    Yes, 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.

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  • Ron Burgundy "Gentlemanly L... 2013/01/26 11:30:51
    Ron Burgundy "Gentlemanly Lover"
    great,and i liked that company too. thanks unions! not!
  • nerak611 2012/11/21 23:15:04
  • Shinimegami 2012/11/18 19:41:21
    Shinimegami
    CEO Gregory Rayburn mismanaged the company & gave himself huge raises. That's the real problem.
  • askmike Shinime... 2012/11/19 04:32:49
    askmike
    +1
    That is knee slapping funny! Tell us another funny story.
  • Shinime... askmike 2012/11/20 03:06:19
    Shinimegami
    You think it's funny when an incompetent CEO ruins his company and gives himself a raise for it?
  • askmike Shinime... 2012/11/20 03:13:32
    askmike
    Har, har, har. Another knee slapper. Keep them coming!
  • Shinime... askmike 2012/11/21 00:10:20
    Shinimegami
    You're seriously disturbed if you think reality is funny.
  • askmike Shinime... 2012/11/21 00:24:56
    askmike
    Yes, it is funny. It is funny that you claim his raise brought the company into bankruptcy. It is funny because you have ignored the fact the Board of Directors gave him the raise and the Board of Directors were satisfied with his performance. With your business acumen I am surprised you are not on the boards of a dozen corporations.
  • Shinime... askmike 2012/12/02 04:37:43
    Shinimegami
    The board of directors were obviously just as incompetent.
  • askmike 2012/11/18 19:37:17
    askmike
    Eastern Air Lines folded because the unions cut the head off their golden goose. The unions could have kept tens of thousands of employees employed had they lowered their demands and the unions knew the straits of the company. Virtually all US airlines today have sought court ordered restructuring of their contracts and today every US airline has ridded theselves of pension plans that date to the mid 20th century. American taxpayers support those pensions that are now administered by the Federal Pension Benefit Corporation.
  • Christine/Rest in peace Pet... 2012/11/18 18:51:24
    Christine/Rest in peace Peter Br
    +2
    I have seen unions do this before, and bring down companies when they would not use a little common sense. I lived where Werehouser closed down a lumber mill because of the same thing. Werehouser even opened their books to the unions so that they could see they were struggling, but the unions claimed it was all a gimmick. My neighbors bought the union song and went on strike, and the mill closed down. My neighbors lost their jobs, the highest paying jobs in the city, and the town suffered and people lost homes and jobs.

    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.
  • derek 2012/11/18 17:21:00
    derek
    +3
    Well done Obama supporters. . Well done. Don't stop here though! There are millions more jobs you can destroy! my work here is done
  • Mike Smith 2012/11/18 15:33:49
    Mike Smith
    +2
    This is their second bankruptcy in 8 years. The top 9 in the company or Hostess (Including the CEO) gave themselves $6+ Million dollars in raises this year as a reward for doing such a poor job, AFTER cutting employees benefits (pensions, healthcare, etc.) And you are really suggesting it is all because of unions? You make me laugh, sir. LOL
  • JFos Mike Smith 2012/11/19 02:07:33
    JFos
    My point exactly. well said.
  • ComeOnNow 2012/11/18 15:20:21
    ComeOnNow
    +4
    Unions kill icon after icon.
  • BifDaddy 2012/11/18 13:44:37
    BifDaddy
    +1
    Perfect example of the Union mentality.

    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.
  • $$*gat*... BifDaddy 2012/11/18 14:10:07
    $$*gat*$$ BL39
    Check this hypocrisy out,...
    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@@
  • BifDaddy $$*gat*... 2012/11/18 15:08:19
    BifDaddy
    No doubt my friend.
  • Christi... BifDaddy 2012/11/18 18:53:17
    Christine/Rest in peace Peter Br
    +2
    And when they went on strike against Hostess, knowing the company was expericing finacial toruble, it was all the fault of the compnay and mismangement. Stiking a troubled company takes a lot of common sense
  • Andrew 2012/11/18 12:02:26
    Andrew
    +2
    I wonder when the union membership will learn that their leadership has a different agenda than they do? Even the Coal Miners Unions failed their membership by refusing to back Mitt Romney for President when he would have protected coal miners futures by actually supporting the responsible use of coal for electrical power generation. The coal miners themselves failed to get on board soon enough and force their leadership to take a strong stand. Now they, along with those in the bakers unions will pay the price for allowing the union leadership to speak for them without learning the facts!
  • $$*gat*... Andrew 2012/11/18 14:11:23
    $$*gat*$$ BL39
    +2
    The unions have not cared for workers for decades,, they are not needed,, and just an arm of the socialist dems
  • ☆The Rock☆ * AFCL* The Sheriff!!
    +2
    A very sad day in history and a great American company destroyed by unions!!
  • $$*gat*... ☆The Ro... 2012/11/18 14:12:08
    $$*gat*$$ BL39
    +2
    Hell hell yes, but the saddest day was nov 08
  • ☆The Ro... $$*gat*... 2012/11/18 14:52:11
  • ღ♥ღ ℒea ღ♥ღ 2012/11/18 08:40:19
    ღ♥ღ ℒea ღ♥ღ
    +2
    I would really love to hear the reaction of the workers that just lost all of their jobs. And the head of that union turning down recent offers to end the strike. I want to know they are happy with their decision or if their jaw hit the floor when the announcement was made. If anyone has any links to those reactions, please share.
  • nonnonsenseguy 2012/11/18 06:28:19
    nonnonsenseguy
    +2
    Over reaching unions....over reaching government.....the hell with them both.
  • CUDDLY BUT STILL CRABBY 2012/11/18 02:55:30
    CUDDLY BUT STILL CRABBY
    +3
    Workers voting for a union are like chickens voting for Colonel Sanders.

    Stupid, stupid people.
  • mac9 2012/11/18 02:43:59
    mac9
    +3
    Ding dong your jobs at Hostess are gone. Thanks to Obama's beloved unions.
  • Pissed off contractor 2012/11/18 02:13:46
    Pissed off contractor
    +2
    Saddly I fear that this is only the beginning of a large number of lay offs and companies closing. The unions care about their bosses only and could care less about the workers. The Obama administration doesn't care about weather or not an employer can still turn a profit with all of the government regulation especially the horror show called Obamacare. This country is on an express train to hell, the last stop was November 6th. and the majority decided to keep going. We will be a third world country in another 4 years. Hold on to your hat. It is going to be a rough ride.
  • $$*gat*... Pissed ... 2012/11/18 04:13:33
    $$*gat*$$ BL39
    +2
    We lost 78,000 jobs since zero was reelected,, yes, the ride will be rough
  • Pissed ... $$*gat*... 2012/11/18 12:00:38
    Pissed off contractor
    +1
    And we will continue to loose jobs in record numbers then the next wave of foreclosures will come when people can't aford their houses not to mention cars and revolving debt. The banks will tighten up even more which will cut funding for the remaining companies and more jobs will be lost. this is going to snowball until the unemployed outnumber the working. I don't know what these people who voted for obama were thinking. We are doomed.
  • $$*gat*... Pissed ... 2012/11/18 14:21:58
    $$*gat*$$ BL39
    +1
    Had to take my gran to hospital other day.. They had MSNBC blasting all over.. The propaganda was vile..the dummies have no clue.. They r only tools
  • Pissed ... $$*gat*... 2012/11/18 23:09:50
    Pissed off contractor
    MSNBC is the voice of the left. They watch it like it is Obama himself. They are clueless but they will find out soon enough what they voted for because at some point other peoples money runs out. At least we have a work ethic and are able to provide for ourselves. I know it is going to be tough but we are going to be better off then them when the sh** hits the fan. Can you see them getting up in the morning and actually doing something to earn their keep?
  • JFos 2012/11/18 01:51:12
    JFos
    +1
    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. It is every one's God given rihgt to collective bargaining. I have proudly worked union for 30 yrs of my life. The hole story is probably not being told just yet. I wonder what the CEOs made last year?
  • $$*gat*... JFos 2012/11/18 04:14:25 (edited)
    $$*gat*$$ BL39
    +1
    Explain why US lost 78,00 since zero stole stole election
  • JFos $$*gat*... 2012/11/18 07:39:47
    JFos
    +1
    Simple- Corporate Greed. These union workers ALL took concesions to keep their jobs- The CEOs still took their bonuses. This seems to be the way of corporations these days- Run it into the ground- Squeeze every penny out of it- Fix nothing- then shut it down for a quick sale. This has nothing to do with who is President. They could have done what Romney did with his company- Instead of shutting it down, move it and the jobs to China and Taiwan. Don't get me wrong- I'm no fan of Obama or Romney,neither are right for the highest office of our land. If the GOP would have ran a candidate worth having- he would have won with little resistance.
  • $$*gat*... JFos 2012/11/18 14:23:02
    $$*gat*$$ BL39
    U mean union greed... That is why kids are now leaving a lousy collage w 200,000 debt, n cant get a job
    Bureaucrats Paid $250,000 Feed Outcry Over College Costs
  • JFos $$*gat*... 2012/11/19 01:55:30
    JFos
    No- i mean corporate greed. College grads for the most part will take corporate jobs, not hourly or union jobs. The kids leaving the colleges should try and major in something other than PE or english studies. Do your homework.
  • realityjunkie 2012/11/18 01:39:20
    realityjunkie
    +3
    Please. It is mismanagement that has caused their demise. They have been through two bankruptcies, debt, and sells are declining because people are making healthier choices. They forced these big bad unions workers to take lower wages and huge pension cuts. The wealthy top executives are the ones to blame. Not the union.
  • $$*gat*... reality... 2012/11/18 01:46:50
    $$*gat*$$ BL39
    So have many companies,,, the unions did not care
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