No more Twinkies, Snowballs, Ho-Hos or Ding Dongs

Discussion in 'Politics and Current Affairs' started by 350X, Nov 16, 2012.

  1. No more Twinkies, Snowballs, Ho-Hos or Ding Dongs

    Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.

    The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.

    Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn't return to normal levels by Thursday evening.

    The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.

    Hostess, based in Irving, Texas, has 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, Hostess CEO Gregory Rayburn said many workers have 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 says that production at about a dozen of the company's 33 plants has been seriously affected by the strike. Three plants were closed earlier this week.

    A representative for the bakery-workers union did not respond to request for comment. The Teamsters meanwhile are urging the smaller union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company's books, the Teamsters say that Hostess' warning of liquidation is "not an empty threat or a negotiating tactic" but a certain outcome if workers continue striking.

    The Teamsters also noted that the strike put its union members in the "horrible position" of deciding whether to cross picket lines.

    Hostess, a 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 has argued that workers must make concessions for it to exit bankruptcy and improve its financial position.

    The company, founded in 1930, is 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.
     

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  2. Biaviian

    Biaviian Well-Known Member
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    Gotta love unions!

    No worries though, companies will buy the product lines and they will be continued.
     
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  3. BigCiX

    BigCiX Well-Known Member
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    Just sell their Chocolate Zingers to Quaker Oats and I'll be happy. Everything else can go.
     
  4. Prinny

    Prinny Resident Linux Nutcase
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    Hostess also makes Wonder Bread. So that will be off the shelves, as well.

    It's kind if depressing, actually. It's snacks that I grew up with as a kid. So more of my childhood is vanishing.
     
  5. It
     
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  6. AntimonyER

    AntimonyER AF Addict
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    Maybe this will finally induce my Grocery store to carry something else besides hostess brand... Like Merita.
     
  7. zuben el genub

    zuben el genub Well-Known Member
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    Wonder Bread isn't even cooked! You can make pellets out of it, dry them and they work pretty well with a large elastic finger type slingshot, or a larger straw rather than spitballs.

    The Vulcan would have been devastated years ago. He grew up on the stuff. My mother baked or bought hard ethnic bread from a bakery. Having to chew that hard stuff was supposed to be good for you.
     
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  8. Biaviian

    Biaviian Well-Known Member
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    You mean baked? It certainly is baked.
     
  9. mikedt

    mikedt 你好
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    I bet Kraft will buy the brands. Twinkies, Snowballs, Ho-Hos or Ding Dongs will still be available, main difference is, they'll be made in China from now on.
     
  10. HomePride wheat bread is the best, I could eat a whole loaf as is.
     
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  12. Kamau

    Kamau Well-Known Member
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    Can't blame the union on this one. They took a reduction in pay the last go round. Gotta look at the CEO who just got a huge bonus, or the pay raises of the executives got.
    It funny, when a product is doing well, the executives take all the credit. But when there are problems, blame the workers and the union.

    Teamster Forever!
     
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  13. AntimonyER

    AntimonyER AF Addict
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    Credit to the Teamsters, they agreed to the new contract, recognizing there was no other option. It was the Bakers union who rejected it. In fact the Teamsters put out a statement saying the concessions were necessary, and they were disappointed other stakeholders (Bakers union but didn't call them by name) were unwilling to cooperate. Plus it was a court-ordered contract, the executives had nothing to do with it.
     
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  14. Biaviian

    Biaviian Well-Known Member
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    Absolutely you can. If they hadn't gone on strike then they wouldn't be in this mess.
     
  15. Kamau

    Kamau Well-Known Member
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    I'd they hadn't gone on strike, that would have been accepting things as they were. At some point, you have to say "enough is enough". You get tired of working your ass off, watching a company grow & prosper, while you struggle to make ends meet, all the while watching the upper management executives get huge salaries & bonuses.
    Tell those in those top offices to give back 8% of their wages, and see how they'll react. That's just American greed at its finest.
     
  16. Steven58

    Steven58 Reformed PH
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    Good for nutrition for our kids. Bad for American business and workers.
     
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  17. AntimonyER

    AntimonyER AF Addict
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    Especially right before the Holidays. :(
     
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  18. Chex Remix

    Chex Remix Well-Known Member
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    I haven't had any Hostess cakes in ages... Kind of sad to see them go, though. They were one of my favorite childhood snack companies.
     
  19. Biaviian

    Biaviian Well-Known Member
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    If they don't like it then they can leave. Nobody is entitled to a job or a certain wage (other then minimum wage). People these days feel like they are entitled to make the same amount as others. That is the type of thinking that gets us into trouble.

    The fact that the strike caused this mess is indisputable; it is a fact. You may feel the strike is warranted and blame others for the strike but the fact remains that the strike caused it. It was one union covering only 30% of the employees that caused this mess.
     
  20. Plaigh

    Plaigh Well-Known Member
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    WOW - I just heard the news say - The picketers crippled the already bankrupt company because the refused the 8% or 18% pay cut (whatever it was) ... Hmmmm, "They'd rather be unemployed than to take a pay cut??? THAT really showed Hostess now didn't it.


    I'm gonna have to disagree with you ... I think Hillbilly Bread is the best thing since sliced bread :p
     
  21. olbriar

    olbriar  
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    No more Suzy Q's OMG. And to think.. they once saved my life.
     
  22. Steven58

    Steven58 Reformed PH
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    sad about the jobs.
     
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  23. Metroid Prime

    Metroid Prime Oil Can!!! Oil Can!!!
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    This... is... MONSTROUS!
     
  24. Gmash

    Gmash Well-Known Member
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    neither Here nor There
    :questionmark: care to elaborate on that?
     
  25. Kamau

    Kamau Well-Known Member
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    I think it's a plot to destabilize western cultures. I mean a world without twinkies is just unsettling. Governments will fall, chaos rule, the masses will riot, cats & dogs will start living together...... Anarchy. Pure Anarchy.
     

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