Those unions watching out for their workers...

[PreachersWife2004]

Oh...wait...

NEW YORK (CNNMoney) -- Hostess Brands -- the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread -- announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.

The closing will result in Hostess' nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000.

In September, one of its major unions, the International Brotherhood of Teamsters, voted narrowly to accept a new contract with reduced wages and benefits. The bakers' union rejected the deal, however, prompting Hostess management to secure permission from a bankruptcy court to force a new concession contract on workers.
​

Hostess Brands closing for good due to bakers strike - Nov. 16, 2012

 

[QuiltAngel]

Why is it that people don't seem to understand that right now a job is better than no job.

 

[Rion]

They went into bankruptcy in the first place because of the union. If any of the workers weren't unionized, I feel bad for them.

 

[Touma]

They went into bankruptcy in the first place because of poor management skills. The fact that the union gave up quite a bit shows how bad it was at Hostess. The fact is that junk food is becoming less popular as eating health gains steam. Hostess thought the only way to be competitive was to cut employee pensions and benefits.

 

[PreachersWife2004]

They went into bankruptcy in the first place because of the union. If any of the workers weren't unionized, I feel bad for them.

I couldn't tell really from the article but it appeared as though the major unions represented about 5,000 workers. Maybe there were smaller unions??

18,500 people out of work.

I'm hoping something can be done here to prevent this.

 

[rambot]

Management blames workers.

Why not?

 

[PreachersWife2004]

They went into bankruptcy in the first place because of poor management skills. The fact that the union gave up quite a bit shows how bad it was at Hostess. The fact is that junk food is becoming less popular as eating health gains steam. Hostess thought the only way to be competitive was to cut employee pensions and benefits.

The Bakers union refused the contract. The Teamsters narrowly approved it. The Teamster union represents about 7,500 workers...while the baker union represented about 5,000. I don't know about the other 6,000 workers.

Did you read the article? Hostess wasn't down in sales...they just know they can't afford a STRIKE. If the workers weren't striking this wouldn't be an issue.

 

[PreachersWife2004]

Management blames workers.

Why not?

They're blaming the impending strike, not the workers. The company cannot afford a shutdown.

Even the Teamsters are a little shocked by the Bakers Union.

The contract didn't seem to be that bad...

The new contract cut salaries across the company by 8% in the first year of the five-year agreement. Salaries were then scheduled to bump up 3% in the next three years and 1% in the final year.
Hostess also reduced its pension obligations and its contribution to the employees' health care plan. In exchange, the company offered concessions, including a 25% equity stake for workers and the inclusion of two union representatives on an eight-member board of directors.
​

I see a company trying to negotiate with its workers and one union just shutting down completely.

 

[ImperialPhantom]

They went into bankruptcy in the first place because of the union. If any of the workers weren't unionized, I feel bad for them.

-1

They went bankrupt because they were losing money due to poor management and products that couldn't sell like the competition, much of which is also unionized, with enough of a profit to stay financially healthy.

 

[PreachersWife2004]

this article gives some more good insight

Hostess Closing Bakeries as Workers Won’t Cross Lines - Businessweek

 

[Touma]

The Bakers union refused the contract. The Teamsters narrowly approved it. The Teamster union represents about 7,500 workers...while the baker union represented about 5,000. I don't know about the other 6,000 workers.

Did you read the article? Hostess wasn't down in sales...they just know they can't afford a STRIKE. If the workers weren't striking this wouldn't be an issue.

I'm pretty sure they have been struggling for a while. I remember reading an article months ago about the possibility of them selling off to another company because their sales took a hit.

 

[PreachersWife2004]

I'm pretty sure they have been struggling for a while. I remember reading an article months ago about the possibility of them selling off to another company because their sales took a hit.

They have been struggling, just like every other company. But their sales aren't kaput. The contract was needed to help get them back on their feet.

If I were employed by Hostess, I'd be looking at it this way. Three days ago I had a job. I might've taken a cut in pay, but I had a job. Now, I don't have a job at all. Which is better?

 

[MachZer0]

Management blames workers.

Why not?

To be workers, they have to be working, and in this case they aren't working, thus the problem

 

[MachZer0]

They went into bankruptcy in the first place because of poor management skills. The fact that the union gave up quite a bit shows how bad it was at Hostess. The fact is that junk food is becoming less popular as eating health gains steam. Hostess thought the only way to be competitive was to cut employee pensions and benefits.

Can you tell us what some of the those poor management skills were?

 

[PreachersWife2004]

Can you tell us what some of the those poor management skills were?

I've often wondered what kind of management can actually be executed when 95%+ of your staff is unionized...

 

[whatbogsends]

Oh...wait...

NEW YORK (CNNMoney) -- Hostess Brands -- the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread -- announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.

The closing will result in Hostess' nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000.

In September, one of its major unions, the International Brotherhood of Teamsters, voted narrowly to accept a new contract with reduced wages and benefits. The bakers' union rejected the deal, however, prompting Hostess management to secure permission from a bankruptcy court to force a new concession contract on workers.
​

Hostess Brands closing for good due to bakers strike - Nov. 16, 2012

I thought Devil Dogs were Drake's?

 

[GeorgeKillen]

Now they'll get 99 weeks of unemployment followed by a lifetime of disability payments.

 

[kermit]

I've often wondered what kind of management can actually be executed when 95%+ of your staff is unionized...

How does unionization affect product offering decisions and marketing strategies? How does it affect distribution deals? etc...

 

[whatbogsends]

-1

They went bankrupt because they were losing money due to poor management and products that couldn't sell like the competition, much of which is also unionized, with enough of a profit to stay financially healthy.

Perhaps if top executives didn't get an 80% (or more, for some) pay raise last year, the 8% pay cut would have been easier to swallow for the workers.

 

[PreachersWife2004]

Perhaps if top executives didn't get an 80% (or more, for some) pay raise last year, the 8% pay cut would have been easier to swallow for the workers.

source for the 80%?