Is this the end for Twinkies?
Hostess Brands said Wednesday that it will go into liquidation unless bakers striking in protest against a new contract imposed in bankruptcy court return to work by the end of the day Thursday.
"We simply do not have the financial resources to survive an ongoing national strike," Hostess CEO Greg Rayburn said in a statement.
The liquidation would result in Hostess' nearly 18,000 workers losing their jobs. The bakers' union represents around 5,000.
The union did not immediately respond to a request for comment Wednesday, but has called the concessions demanded in the new contract "outrageous."
"Our members are on strike because they have had enough," bakers' union president Frank Hurt said in a statement Tuesday. "They are not willing to take draconian wage and benefit cuts on top of the significant concessions they made in 2004 and give up their pension so that the Wall Street vulture capitalists in control of this company can walk away with millions of dollars."
Read - Hostess to liquidate if bakers' strike continues through Thursday
Previously - Stay gold, Twinkie the Kid. Stay gold. and Take my snack cakes? Over my blinded, bloated body!
One would think that the recent laws in Washington and Colorado would have given these people hope.
That aside, it's nice to see that the big corporations are fulfilling their god-given duty as job creators. ...Oh wait.
The rise and fall of the Teamsters USA.Demands after demands and big capitalist corporations that are in business like all businesses to provide a huge profit-are telling America's unions they have had enough.So-here we have a situation in which both sides have leveraged them selves out of work over who gets the bigger piece of the pie.
The ones who vested millions to build an empire on the workers backs or the workers who have pushed and clawed their way into the spotlight to get the respect and earnings they feel they deserve.
Now only those with the millions to gain or lose will have the last laugh and profit on the way out the door as 18.000 lose their jobs.Bravo to both sides! Greed has crushed the Twinkie and Hoho empires.
Ummmm, you may want to do a little reading – the Teamsters had AGREED to management terms – it was the bakers union that threw the monkey wrench into it.
Also – let me ask you a question – everyone says – we have to cut wages – we have to keep our jobs. But how far down can you go? At what point do you draw the line? Everryone I know has a floor of income they cannot go under – basically make housing payments (house or apartment), utility payments (elctricity), clothing and food. Note that I have excluded luxury items like phone, etc. To sit there and say that workers can constantly bear the brunt of management missteps is a bit ridculous.
If you don't like your wage vote with your feet. If you can't find a better paying job then maybe that's all the wage you are qualified to earn. Try improving your skill set.
trust me, even if ownership gave the laborers what they are askin for. Ownership would still have a larger slice of the pie. Love people who believe the workers are at fault in anyway. If ownership was already making let's say 10 million profit (just makin up numbers here) and they could up that by 2 mil to 12 million profit but it meant takin away all the workers benefits, having a work force unhappy and less productive with no recent pay raise to keep up with inflation they (ownership ) would do it. WHY you ask? because they are greedy vultures just like the union says. PERIOD! to all you capitalists out there ...just shut your collective faces. watch...there will be plenty of twinkies to buy...they will probably close down a while -reoped as lets say- hostess2 and rehire thousands of non skilled illegal mexicans and continue on like nothing ever happened. Par for the course. with more money comes greed. history has shown us this over and over. TRUE capitalism does not work! period!!
Winston – "Tell him about the Twinkie"
Venkman – "What about the Twinkie?"
it's not wether you like twinkies or not.......the matter here is exactly what was stated, " the wall street vulture capitalists says it all." It will be the fall of this nation in some time. Small business's disapear, only the largest survive and even eliminate each other when they already have become part of monopoly's scattered across the country. Computers are already eliminating jobs across the board ....one day the few rich will be burned at the stake ...robbed, tortured and so on...by the masses of poor created by this so called wonderful thing of ours...known as "CAPITALISM" you will see all of you....
The collective waistline of the United States of America just shrunk.
No more Twinkies!? This is an outrage! A national calamity! This can't be happening! I guess the hammer has fallen and the end has finally come! We shall forever mourn the loss of the hallowed Twinkie! Waaaaaaaaaaaaa!!!! ;op
The Mayans were right!!!! It is the end of the world as we know it! ;)
and I feel fine
OMG !! A Union will make the say for 5000, and affect 18,000 by being stinkers !!!??? WAKE UP !!!!! I believe the Union needs to think about something other than money !!!! 18,000 people out of work ??? STUPID STUPID STUPID !!!!!
Hostess was going under anyways. They were trying to steal the union pension fund.
Not to worry ! you can buy all the twinkies out want on EBAY ! they are only $100 bucks
No They are a million dollars now lol
If I am going to give my kids a sugar bomb, I would rather feed my kids a couple of fresh baked Timbits. But anyhow, lets talk more about the number of CEOs at Hostess in the last decade and exactly how much those CEOs earned and what kinds of golden parachutes they received while the company continued to decline and while workers were continually squeezed for the survival of the company.
And what do the union officers, like the union president make? And are they out of a job?
Yes the CEO received a pay increase from 750,000 to 2,500,000 in the past year... However that 2,500,000 a year for a CEO of a major company is still kind of a joke. It also wasn't going to account for saving the company had the CEO not gotten that raise.
I'm going to buy some Twinkies and give them to my twelve-year-old grandson, so he can give them to his grandkids. With all the preservatives in them, they'll survive the next Ice Age.
July 6, 2347: Archaeologists unearthed the ruins of an underground dwelling in the area formerly called "The Midwest." What appeared to be booby-traps guarding a large cabinet had long rusted away. In the cabinet were 700 small yellow "cakes" filled with a white substance. One of the archeologists took a risk and bit into one of the cakes, and reported that it still was fluffy and tasted good. Scientists are puzzled.
I knew some science graduate students that had a tradition of giving a new lab member a twinkie to keep when they joined the group. They had to eat it when they got their PhD several years later. It was great motivation to stay on track with your research and get your thesis written in a timely fashion....
I agree. They should fossilize nicely. I imagine people of the far future opening a time capsule filled with fossil twinkies. I wonder if they'll know what they were used for? Imagine all the theories that will crop up to try to describe what those little yellow rock hard twinkie thingies were for? ;oD
August 12, 2351: Scientists report they have finally deduced the purpose of the mysterious "Yellow Cakes With White Filling" which were unearthed several years ago in "The Midwest." Fragments of contemporaneous records, coordinated with the ultra-high security surrounding the objects, make it obvious they were part of an elaborate religious ritual.
It's already happening, I stopped by the store this morning and all of the boxes of Twinkies were gone. They had a few boxes of the chocolate filled Twinkies but to me, those are not true Twinkies.
The last time I had one I was 12, playing outside daily and delivering newspapers. Now I am almost 40, and the thought of eating one makes me want to throw up.
Apparently legalization of marijuana came too late to save Hostess..
LOL...good one. :)
Oh, cruel Fate... How you mock me!
. They probably have enough preservatives to last 10 years... Buy cases of 'em...
10 CEOs in 10 years and people still trying to blame the unions ?
Have they seriously had that many CEOs in such a short amount of time? Unbelievable.
...so the unions have had enough of the draconian wages? Well guess what, unions? Now your 18,000 members have NO WAGES AND NO JOBS!!!!! See what unions do to people? They just added 18,000 more employees to the unemployment lines and they'll get far less money than they were getting working for "draconian wages"......
Do you ever see how much hostess products fill shopping carts every weekend ? The union was not the problem with this company,the problem lied with mismanagemnt of the company.
Lisa//"Now your 18,000 members have NO WAGES AND NO JOBS!!!!! See what unions do to people?"
To be precise, now the 5,000 Baker's Union members have no wages and no jobs.
And because of that union's decision not to follow the court-directed contract, neither do the other 13,000 employees from other unions that DID agree.
Fine. Management screwed things up.
But 28% of the workforce STILL decided that 100% should become unemployeed, when they ALL could still have a job. That was one union's decision. Not a management decision.
Right, but isn't this hypocritical. A CEO and/or Board of directors (less than 1% of the company) can make decisions that cut jobs or even sell or close the company, yet you are complaining that 28% of the workers came together to affect company decision.
This scenario is way more balanced than a few making the call for all.
When the 99% hold the same responsibilities as the 1%...you know, little things like running the operations of a large company, keeping all vendors and creditors paid, dealing with the mountains of red tape caused by government and unions, well then, just maybe your statement would make an ounce of sense. The problem is people who have never run a company always just think the people at the top are lining their pockets and they never deserve what they make. In the meantime, they think they should dictate how much the employees should because they know better. People keep referencing minimum wage on here...I highly doubt that these employees were asked to reduce their pay to minimum wage with no benefits. Many, many employees have had to do more for less in the last 4 years. If you don't like it, go find another job and see what you can find.
"A CEO and/or Board of directors (less than 1% of the company) can make decisions that cut jobs or even sell or close the company, yet you are complaining that 28% of the workers came together to affect company decision."
As @mkdb pointed out, the JOB of that 1% is to make those kind of decisions. That the 28% made such a decision that affected their PEERS is a problem. Happy now?
See my response to you a little further below Fiftyfive
The employees have had enough of the mismanagement and want the company to be sold off to a company that knows how to manage it's finances responsibly. The hedge fund companies that own it don't care about the jobs, they only care about the profits over it's people.
Ummmm.....classic example of cutting off one's nose to spite their face.
From the CNN Money article: "But even if those brands are bought and restarted, the Hostess workers will not get their jobs back."
A few points:
1. The new contract was court ordered, and all unions, except the Baker's agreed (less than 1/3 of the workforce)
2. The details were: 9% cut for the next year. Then 3% back each of the next three years, followed by a 1% increase. So after 4 years they'll be making more than today (granted, with no consideration for inflation), with another 1% guaranteed the year after that.
3. So the union thinks it's better to be unemployed (with the rate at 7.9%), than have jobs that the company and the court are trying to keep viable.
4. Screw the other employees. The bakers just fired them.
Unions ruin businesses in modern day America...and are basically legal organized crime. Also...with all of the struggling out of work Americans dying for a job...shame on those idiot workers just like shame on those idiot teachers earlier in the year. So you want to strike? Good, enjoy being unemployed now....morons....In a real job...if you don't want to show up, you get replaced...only in a Union do you get paid to sit around, bitch, and not go to work.
Put your money where your big mouth is and work for minmum wage which you seem to want others to do,what a dolt.
at least with a minimum wage, NON-UNION job, you would HAVE A JOB!!!!!!! Unlike these new 18,000 unemployed union workers!!!!!!
Do you realize unemployment pays more than many jobs today ? Do you,as an American,think that is good for our country or are you just another exec with insatiable greed ?
As a recent college graduate, I have worked all of the hourly positions and questioned how one can survive on the money made per week. Hell, I was working two of them at nearly 65 hours a week while at college full time. I am fortunate to have a great position, and everyone quick to point the finger at unions most likely has a good paying job. People settling for what the company wanted to pay would end up unable to keep their family afloat, and would then turn to other means of making money and cause a whole heck of a lot more trouble than if this company had any meaningful way of making money without resorting to cutting pay. It was a time bomb ticking from what I read, and this is not a third world country where peasants are eager to make a few dollars a day. I wish the best of luck for the ones who lost their job and hope they find something that appreciates them very soon.
It did not take a zombie apocalypse to bring about the end of the Twinkie. The company could not make enough money to keep going. Until another company purchases the Twinkie name and recipe there will be no more Twinkies. This is partly because the owners and workers could not make the place operate efficiently enough, and partly because of the changing diets of their potential customers. I remember eating these things often as a kid, but relatively rarely as an adult do I indulge in one of these treats. Still I will miss them, although maybe not as much as Woodie Harrelson's character in Zombieland (Woody Harrelson in real life doesn't eat them and an interesting fact is that the ones he stuffed his face with in the movie were specially made from corn meal)
Thank goodness... I was hoping someone would drop that movie reference.
I went to a few stores in Chicago Friday night to find some, but alas, they were all already gone from every place I checked. I felt a bit like Woody's character, but none were to be found. I had to settle for a Suzie Q and a Sno-ball, neither of which I had tasted in years.
The Twinkie you hold is the Twinkie that holds you down.
Easy fix. The current regime should bail out the 18,000 laborers by paying the difference they'll lose with the new contract. "Twinkies are to big to Fail".
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