Unions Destroy American Sweets Icon

[Gary and Alla 3,694]

Firstly as Hostess management was giving themselves raises for an outdated business plan, they were complaining about workers making too much, the workers who are sole responsible for the manufacture of the product that gave these managers the wherewithal to be rich.

While the attempt is to blame unions for having several different working rules and benefits the fact that other businesses can operate profitably speaks of the likely incompetence of Hostess’ management, the management that believe themselves deserving of raises.

But I digress. It is time for us to examine worth. We have in our society those that managers and capital manipulators that we tend to give reverence to or accept that they are deserving of the income they receive. We must change our mindset. They managed Hostess but the middle class workers made it the company it use to be. It is the changes instituted by the managers, the deals made by the titans of capital that put the company at risk. Yet as usual they want workers to bare the brunt their error.

Even in the bankruptcy of Hostess, the titans of finance are likely to come out ahead as they sell off assets. And the middle class working will be left holding the bag.

The American middle class worker must reassert themselves. In doing so they must know within their soul that the worth of the guys in the head office is not more than their own worth. When one no longer worships management or those they perceive as more worthy, they will have the necessary clarity of mind to demand what is theirs and stop those above from pilfering them. To end class warfare you must win not only little battles but the war.

This is a story that repeats itself over and over again. I wrote the book “As I See It: Class Warfare The Only Resort To Right Wing Doom” that described many of these problems that are killing the middle class and to empower folks with the knowledge that will be necessary to fight it. The battle is more effectively fought if we know not only what the problems are, but how and why they came about and how they are best solved.

http://egbertowillies.com/2012/11/19/the-twinkie-story-is-yet-another-class-warfare-story-that-the-middle-class-lost/

What about just hiring illegals? No messy wage and hour laws, benefits, withholding, workers compensation.

[elmcitymaven 9,712]

UPDATE! http://www.latimes.c...0,5350938.story

There may be hope for Twinkies after all: Hostess Brands Inc. and its striking union agreed to a mediation that will forestall the company's planned liquidation for the time being.At a bankruptcy court hearing Monday in New York, 82-year-old Hostess had planned to ask permission to start shutting down its business. Instead, Judge Robert Drain urged the company and the Bakery, Confectionery, Tobacco Workers and Grain Millers International union to consider mediation.

Both sides agreed to try to work through their conflict, which would preserve more than 18,000 jobs that will otherwise disappear if the Irving, Texas-based company closes its doors. Mediation hearings will begin in private on Tuesday.

The hearing to consider Hostess' motion to wind itself down is adjourned until Wednesday morning, according to the company. Production "remains shut down," it said.

Hostess has 565 distribution centers around the country, as well as 33 bakeries and 570 bakery outlets.

On Friday, Hostess said it would go out of business, blaming a strike by members of the BCTGM union. Workers who walked out accused the company of slashing benefits and wages while rewarding managers with substantial pay raises.

Within days, a suite of suitors emerged, vying to control brands such as Ho Ho's and Ding Dongs.

"There's a whole host of huge food companies out there that have the financial wherewithal to take over the Twinkies brand and make money off of it," said Anthony Michael Sabino, a business professor at St. John's University. "There could be very spirited bidding."

Florida-based private equity firm Sun Capital Partners said it hoped to buy the company with a more union-friendly deal, according to Fortune.

Flowers Foods, parent to the Nature's Own brand, is also in the mix. The Georgia-based baking company said Monday that it has extended its loan agreements, allowing it to access more funds for "acquisition financing" and "expansion goals," among other purposes. To analysts, the move signaled that Flowers is interested in picking up Hostess.

Hurst Capital filed a letter of intent in bankruptcy court Monday to buy Hostess' assets -- including intellectual property and office supplies -- in a "multimillion dollar" offer.

Reports over the weekend also named Bimbo Group, the Mexican company that owns Sara Lee and Entenmann's.

[Love's JAA 100]

UPDATE! http://www.latimes.c...0,5350938.story

Reports over the weekend also named Bimbo Group, the Mexican company that owns Sara Lee and Entenmann's.

Well, if a group of bimbos can make it thrive, I don't know what the problem is.

Edited November 20, 2012 by Love's JAA

[james&olya 1,121]

Reports over the weekend also named Bimbo Group, the Mexican company that owns Sara Lee and Entenmann's.

Well, if a group of bimbos can make it thrive, I don't know what the problem is.

Mexican bimbos no less!

[JohnR! 5,495]

On Friday, Hostess said it would go out of business, blaming a strike by members of the BCTGM union. Workers who walked out accused the company of slashing benefits and wages while rewarding managers with substantial pay raises.

Within days, a suite of suitors emerged, vying to control brands such as Ho Ho's and Ding Dongs.

"There's a whole host of huge food companies out there that have the financial wherewithal to take over the Twinkies brand and make money off of it," said Anthony Michael Sabino, a business professor at St. John's University. "There could be very spirited bidding."

:rofl: :rofl:

But, but, but, but... weren't they broke?

[Gary and Alla 3,694]

:rofl: :rofl:

But, but, but, but... weren't they broke?

Yes. No one is bidding on the debt, they are bidding on making the product, probably without union labor

[JohnR! 5,495]

Yes. No one is bidding on the debt, they are bidding on making the product, probably without union labor

But if they were bankrupt, there would be no need for bidding... One should be able to snatch it on fractions of a penny on the dollar, probably with union labor.

[Gary and Alla 3,694]

But if they were bankrupt, there would be no need for bidding... One should be able to snatch it on fractions of a penny on the dollar, probably with union labor.

They have not filed bankruptcy yet and even if they did the court could auction the rights to make the product to someone else, and use the proceeds to applhy toward their debt. Bidding on the rights to the product ahve nothing to do with the solvency of Hostess or the unions.

IF Hostess sells off the rights to make this product what'dya bet a non union shop gets it? I will bet they will no longer even be made in the US. The union members will be unemployed...but still vote Democrat.

[JohnR! 5,495]

I will bet they will no longer even be made in the US.

It appears you suspect Bain is involved....

[lostinblue 1,989]

Hostess Mediation Fails, Liquidation To Proceed; Furious Laid Off Workers Now Turn On Labor Union

Hostess Brands Inc. said Tuesday night it would proceed with liquidation plans after mediation fails.

Earlier Tuesday, the head of the bakers union whose strike precipitated Hostess liquidation plans didn't attend a last-ditch mediation session and wasn't hopeful about its prospects, he said.

"I'm not too optimistic about this mediation," Frank Hurt, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, said when reached earlier Tuesday afternoon in Columbus, Ohio. He said he couldn't get to New York, where the session was taking place; instead, he said, the union's secretary-treasurer was attending.

Doug Mansky, a Hostess driver in Detroit and a member of the International Brotherhood of Teamsters, was in the process of moving to a cheaper condominium on Tuesday, after his union had agreed to an 8% pay cut that he said would shave $200 a week from his income. After Judge Drain cleared Hostess to impose the same new labor terms on the bakers union, they went on strike.

"I hope things work out. I'm going to be 49 and trying to find a job in a market that's terrible,"

They have now lost everything. And not too unexpectedly, the workers are now turning on the Union!

Some Hostess workers in another union awaiting the

mediation results criticized Mr. Hurt, the 20-year president of the

bakers union, who defended his decisions and actions during the

company's bankruptcy process.

Scott Quenneville, a Hostess truck driver represented by the Teamsters, said he feels his colleagues were misled by Mr. Hurt into believing that a buyer would swoop in for the company. Mr. Hurt on Sunday said he thought there was a good chance a buyer would emerge who would give union members their jobs back.

"Frank misled a lot of people. He was not going to settle for anything less than closing the company down, because they didn't want that 8% pay cut," said Mr. Quenneville. "If you don't want the job, leave the job. Why ruin 18,000 jobs?"

"I didn't mislead anybody on anything," Mr. Hurt said. He said he didn't tell workers preparing to strike that a buyer for Hostess was definitely waiting in the wings.

Mr. Hurt said, "I don't want anybody to think that anybody is guaranteeing anyone anything, but we did know that there were people taking a look at this company."

This would be a truly fantastic drama, if people's lives were not at stake. And no, not one former Hostess worker will retain their job at the new company: that much is certain.

As we said, if only people had a basic understanding of how bankruptcy truly worked, and what the real state of the economy was, then Hostess' workers may have had a chance and some amicable comrpomise would have been possible.

Then again, if people in America actually understood economics and simple finance, then the "Ohio outcome", and many others, would have likely been quite different.

The driver claimed that the 8% cut would cost him $200/week. 200/.08 means he makes $2500/week. Allowing for 2 weeks vacation that's $125k a year.

http://www.zerohedge.com/

[Penny Lane 8,159]

Damn Obama. Will his cruelty never end?

[Gary and Alla 3,694]

It appears you suspect Bain is involved....

No...I suspect a BRAIN is involved. If I bought Hostess I would see what they did, and do the opposite.

[Gary and Alla 3,694]

Damn Obama. Will his cruelty never end?

For Hostess it has. For any union worker that was averaging $11.35 per hour they are now going to learn about unemployment, welfare and medicaid which will be a pleasant surprise for them. They just got a big raise. Hope you and your husband get jobs soonish Evylin

[Penny Lane 8,159]

For Hostess it has. For any union worker that was averaging $11.35 per hour they are now going to learn about unemployment, welfare and medicaid which will be a pleasant surprise for them. They just got a big raise. Hope you and your husband get jobs soonish Evylin

I hope we do too. Until then, we will just show up to the offices we go to every day and pretend to work here.

[JensJrny2Ray 367]

I never realised that welfare was such a walk in the park. My mother was on welfare when I was a child, and sometimes we went hungry. I guess she was doing it wrong.