Originally Posted by
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.
