hostess is closing due to strikes ?

[sneakerd]

Hope all those now-unemployed union workers are happy now!!

[merl]

no worries. someone will buy the brand and start pumping out all your favorite treats under a new recipe. mmmm, sawdust

[josh7328]

THIS is why the Mayans predicted the end of the world in 2012. No more sweet, never-expiring, artery-clogging treats. We're doomed.

[JohnTRourke]

the whole story is quite interesting. Hostess was hugely in debt, partially because they had to make the multi-company payments to the different union pension fundsand partially because they way over expanded and was bought by basically hedge funds. They had a deal with all the unions and esp. the teamsters (who represented the most) last fall, then the baker's union which only represents 5000 workers (of however many 10's of 1000's they have) goes on strike. The teamsters are furious, pretty much all the other employees are furious and now the hedgies are going to shut the company down. But they will still have the assets and the names and the recipes. So, they shut the company down, sell off some of the assets to pay the debt the hedgies own and form a new company with most of the existing bakeries, none of the existing contracts, routes, unions and etc and still have the name recognition. Union busting writ large. I gaurantee the new company will be started with a ton of debt, as none of the hediges will have to put up any money.

the baker's union is stupid though. I would not want to be on the bad side of the teamsters.

[SuperiorDG]

Hope all those now-unemployed union workers are happy now!!

Hell yea their happy, they get unemployment for the next four years. Why do you think they had no insensitive to give in Hostess' demands.

[dwalker460]

the whole story is quite interesting. Hostess was hugely in debt, partially because they had to make the multi-company payments to the different union pension fundsand partially because they way over expanded and was bought by basically hedge funds. They had a deal with all the unions and esp. the teamsters (who represented the most) last fall, then the baker's union which only represents 5000 workers (of however many 10's of 1000's they have) goes on strike. The teamsters are furious, pretty much all the other employees are furious and now the hedgies are going to shut the company down. But they will still have the assets and the names and the recipes. So, they shut the company down, sell off some of the assets to pay the debt the hedgies own and form a new company with most of the existing bakeries, none of the existing contracts, routes, unions and etc and still have the name recognition. Union busting writ large. I gaurantee the new company will be started with a ton of debt, as none of the hediges will have to put up any money.

the baker's union is stupid though. I would not want to be on the bad side of the teamsters.

THIS!^^^

The new Hostess will come out in debt, but be lean and mean and non-Union, and instead of payouts to the Unions they will be able to use their revenue to pay down debt and regain marketshare. Sounds like a familiar strategy... wonder where I heard it proposed before...

[MarkCO]

We will see lots of this in the next few years. One of my major clients just told me they are closing 3 of the 4 offices nationwide in the division that sends me work. This division will see about a 65% reduction in employees in that division as well. While they won't say it directly, due to the economy, regulations and Obamacare. This company is a MAJOR company with whom a lot of you probably do business, and your premiums WILL be going up as a result.

[soldier-of-the-apocalypse]

Does this mean the plant at 72nd and hwy85 will close

[Byte Stryke]

THIS!^^^

The new Hostess will come out in debt, but be lean and mean and non-Union, and instead of payouts to the Unions they will be able to use their revenue to pay down debt and regain marketshare. Sounds like a familiar strategy... wonder where I heard it proposed before...

I see what you did there...



when fewer are forced to pay for more, it becomes as self destructive cycle as more of the fewer collapse and become the burden.

[DD977GM2]

hghclsswhitetrsh
This was going to be my reply to your post concerning your pro union stance.

I do blame the union because the union leadership are probably those encouraging the workers to "take a stand", knowing it won't hurt the union's bottom line the way it hurts the workers and they can use this incident for more propaganda to rally donations and support behind the union. AFL-CIO and other unions have frequently encouraged strikes that actually hurt the workers knowing the strikes would end up hurting the individual workers' bottom line.