Well folks, you can all say goodbye to your beloved Twinkies because they're now a piece of history. Why you ask? Well it's because North Texas-based Hostess Brands, Inc. has decided to go out of business and to liquidate its assets after failing to win back striking union workers. Ah, unions, don't you just love 'em. "We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike," CEO Gregory F. Rayburn says. About one-third of the company's workers are union members who are unhappy about the company's cutbacks during its bankruptcy reorganization. But problems with several unions, including the Bakery, Confectionery, and Tobacco workers and the Grain Millers International Union, have prevented the company from moving forward.
Hostess, the maker of Twinkies, Ding Dongs and Wonder Bread, has now essentially been forced into going out of business after striking union 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," Mr. 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 earlier 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. Hostess suspended bakery operations at all its factories and said its stores will remain open for several days to sell already-baked products. 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.
NBC bimbo, Savannah Guthrie, took time to read some stupid statement on "Today" from the bakers' union making the claim that it was in no way responsible for Hostess going out of business. This statement said: "Despite Greg Rayburn’s insulting and disingenuous statements of the last several months, the truth is that Hostess workers and the union have absolutely no responsibility for the failure of this company. That responsibility rests squarely on the shoulders of the company’s decision makers." In an interview with Fox Business, Mr. 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. Hostess said that production at about a dozen of the company's 33 plants had been seriously affected by the strike.
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 next Tuesday. "Most employees who lose their jobs should be eligible for government-provided unemployment benefits," Hostess said. I hope they're all very happy.
So once again it's union employees who insist upon biting their nose to spite their face. I can only assume that they must see having no job as being better than having a job, albeit at a little less pay. I don't know, sometimes I think unions have really outlived what usefulness they may have once had. These days it seems to be less about the workers and more about the politics of it all. I think it really sucks that those non-union workers will be made to suffer this close to Christmas all because of these unionized malcontents. But hey, I suppose to the union leadership it's all about sacrifices having to be made for the greater good and to further the ability to move "Forward." I wonder how much more it's going to take before enough people maybe start questioning the practicality of the unions and begin to see them for the evil that they are.
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