Hostess Brands closing for good
Cut another notch in the handle of the union gun. Congratulations.
You beat me to it by three minutes, IAC.
I, too, would like to add my congratulations to organized labor.
You both are late...I posted about this last night under another thread..."Lay-Offs announced around the US"
I remember a story from probably 15 years ago, about an NFL quarterback who had lost his starting job, and was beginning a new season. His contract dropped him from a million bucks a year to half a million. Some bright sports reporter asked him what it was like to take a 50% pay cut... and he answered that it was MUCH better than taking a 100% pay cut!!!
I feel for the 70% of Hostess workers who had already agreed to new contracts - who will now be taking 100% pay cuts because of a union representing a minority of the employees refused to accept an 8% pay cut... and keep everyone working!
Good going, you morons! Now everyone's out of a job about a month before Christmas in an economy that absolutely sucks!!!
Yup - you stuck it to Management!
YOU SURE SHOWED THEM, DIDN'T YOU???
More jobs lost in Maine. Good work unions!
Here is a very unfortunate situation ,dumb to say the least. Although listening to one picketer on news it seems the attitude was the same here as elsewhere.
As an aside here is another business that was bought with the money from the beloved Elizabeth Noyes before selling to the national brand.
It was a grand plan to change the Washington Ave. area at foot of Munjoy Hill.
Myself I believe the downfall of the brand started when the signature product was changed by deleting the chocolate covering w the white swirl down the middle of the top!!!( chances are few will remember that)
Hostess already spent significant time and money on plans to liquidate to the highest bidder. This is a company that wants to liquidate. The strike wasn't the only reason this company fell. It has been in bankruptcy twice in 10 years. They have been preparing to liquidate, the strike just accelerated the timeline. Its assets are now more attractive. Now a new company can buy the assets without having to deal with paying old pensions. Shutting down is actually the perfect plan from a corporate point of view.
Shoes were never going to made overseas.
Paper was never going to be made overseas.
People were never going to stop eating ,
Ho Ho 's
matt . I think you are correct as sad as it is for the people.
I wonder if they hadn't moved into a new building (expensive) if the outcome would have been the same ?
A lot of the candy and convenience items in grocery and convenience stores are already being made out of the United States. Lots of donuts/patries are made in Canada. Much of the candy Americans buy is made in Mexico and various countries in South America. Twinkies from Brazil? Could be our future.
What will become of the "Twinkie defense"?
Where's Billings when we need him?
A lot of candy production moved north into Canada, where costs were lower because of the sugar tariffs the companies were paying in the US. There was an attempt to get rid of these tariffs as part of the recent Farm Bill, but many on both sides of the aisle in the Senate, including Marco Rubio, vetoed that effort, no doubt to satisfy the sugar industry of the Southeastern US.
It's probably happened already ... Has anyone heard Democrats, or their wholly owned subsidiary, the US media, spin this as an evil profit-making corporation taking advantage of down-trodden workers?
Has anyone heard Democrats, or their wholly owned subsidiary, the US media, spin this as an evil profit-making corporation taking advantage of down-trodden workers?
Yep... there's plenty of that over on Democratic Underground. There is ONE guy who gets it and has correctly called it what it is - union suicide. Not surprisingly, he keeps getting shouted down.
... there's plenty of that over on Democratic Underground.
I'm not surprised. My stomach is not steady enough to look at that cesspool.
It does require some intestinal fortitude, that's for sure.
The idea that this might be the ultimate brinkmanship occurred to me, the Teamsters would also get to take down a rival.
ANY chance that the strikers will go back to work at this point, and Hostess continue, or is this the opportunity the corporate bigwigs have been waiting for?
Outside the gates of the Hostess bakery on Precourt Street in Biddeford, about 150 workers counted down to the 5 p.m. deadline. They cheered and chanted "shut it down, shut it down" as the deadline passed. The Biddeford plant employs 370, including 300 workers represented by the bakery union.
500 Maine workers face layoffs in Hostess bakery liquidation
Looks like they'll get their wish.
Jeff Jordan, union spokesman:
"Hopefully other companies will come in and buy the brands and the facilities. If not, we'll be getting our workers retrained and back out in the community. We believe several dozen facilities will be picked up right away. "
I re-read this a few times and still can't believe it. These people live in a bubble.
We don't know about this one but we're hopeful and we've done our best to present a skilled workforce.
Really?! They've made themselves completely radioactive to a potential employer.
Well, they're going to get a big dose of reality now.
The Biddeford workers will continue picketing throughout the weekend to ensure that Hostess is really going to shut down and not try to reopen with replacement workers.
Hostess to close, cites nationwide worker strike
Now, there's a "WTF?" moment for you.
The union leaders are all Obama voters. At least when the employees go on food stamps they'll be reliable votes.
Fools, every one.
I doubt it's what corporate bigwigs have been waiting for. They could have liquidated the company a long time ago if they wanted it to fold, and in liquidation most of them will lose their jobs, too.
The goal moving forward will be to... well, liquidate. There is value in the Hostess, Drakes and Wonderbread brands; there is value in the physical plants. So my guess is that we'll see those brands return at some point, under new ownership.
That new ownership, by the way, will be under no obligation whatsoever to hire back the workers who went out on strike, and those workers, if they are hired, will have absolutely no leverage to bargain for wages and benefits other than their own negotiating skills, such as they may be. They could certainly organize at some point in the future, but my guess is that the morons who were unwilling to take an 8% pay cut on roughly $40,000 per year with a pension will decide a year or two hence that $30,000 with a 401K looks pretty good.
That's if anyone actually wants the Biddeford facility.
I know that Branniff and Eastern Airlines were essentially taken down by their unions... anyone got any other good examples of companies shut down by union spite and ignorance?
There is virually NO value in the physical plants. Technology advances so quickly that all of the machinery is obsolete and any manufacturer would use new equipment instead. The old brick-and-mortar and space metal buildings are a liability due to their tear-down value. Vacant used factory, warehouse and office space in Maine? Virtually worthless.
Until the day they die, these union leaders, who brought ruin to the thousands of families they made promises to, and took dues from, will blame "corporate greed" for the failures caused by thier own greed. Liberals lack a conscience or sense of responsibility.
Why no rejoicing from the anti-obesity crowd?
Ban soda, down with twinkies, it's not your fault you eat too much!
It seems unfathomable that the union would kill the company they work for. But all they think about is what they want - they want what they want and the rest of the world be damned.
This happened with Volkswagen at their Westmoreland, PA factory in the 1980s.
They were the first "transplant"** car maker in the modern era to build a new factory in the US. By the time the first five-year contract with the UAW ended, other "transplants" opened factories here. When they had UAW contracts, there were work rule and wage concessions given to Toyota, Nissan, Subaru, etc. that VW did not have.
Volkswagen wanted the same kind of deal.
The UAW said NO.
Volkswagen said they'd close the factory.
UAW said WE DARE YOU!
Volkswagen said they were serious - not kidding around.
UAW said OH YEAH GO AHEAD AND CLOSE IT.
Volkswagen shuttered the plant, moved the tooling to Mexico and has been working there ever since.
VW has since opened a new plant in the US in the last year or two - but it's down south... with NO union.
** BONUS POINTS: Which was the first foreign auto maker to build a factory in the U.S.? (Hint: It was in Springfield, MA)
Sorry kids, the union democrats took away your twinkies.....
It seems unfathomable that the union would kill the company they work for.
The union leaders don't care if their charges are collecting unemployment and living on food stamps. Nor does our Fearless Leader.
Just more loyal Democrap voters.
Well I think there's a real opportunity here to preserve jobs and keep the doors open..... all the union membership has to do is buy the company ... then as "owners' they can run it exactly like they please and pay themselves exactly what they are worth......... I'm sure that there must be some of those strikers who want to step up into those cushy management jobs.... hell everyone know those guys don't DO anything but order people around and get big pay, no heavy lifting there ............and then the union folks really have control of making that bottom line black......look how successful GM is.....
Why no rejoicing from the anti-obesity crowd?
There's some of that on Democratic Underground, too.
I'll be in a food-induced coma until noon next Friday, at which point I plan to drive over to Walmart to see what the union goons are up to. I hear they will try to use the non-union down-trodden to kill off more jobs.
The union didn't want to take a pay decrease...now the employees don't get paid at all. What good did that do? Thousands out of work... ugh.
The total employment numbers being cited are 18,500+ of which many are NOT union employees. Alternatively, the other unions already accepted a concession deal. So, the Bakery union, which represents 5,000 workers., is putting themselves and 13,500 fellow employees out of a job. Then we include all the suppliers, mechanics, and smaller vendors who serviced the larger companies, and the stores that formerly sold the products.
Nice job, union workers! No unemployment, no job, no pension, no health benefits, and probably a minimum of state benefits, if these folks have any assets. There go the toys, the nice house, and the security of a regular paycheck. Wait until you find out what life is like out here in Real Job Land.
The union represents the bakers, a small fraction of the workers. They dug their heels in, like the donkeys they are, and, instead of an 8% pay cut for a few, thousands get a 100% pay cut. Ugh indeed. Everything about today's unions is ugly.
Let us not forget that the memebers voted to not accept the cuts
Here's a comment from the company CEO:
"The union hadn't returned the company's calls for the past month."
You drove your employer right out of business!!!
No unemployment, no job, no pension, no health benefits, and probably a minimum of state benefits, if these folks have any assets.
I don't think this is correct. They will get unemployment, and whatever they might have in there vested pensions they will get to keep. Health benefits - COBRA, or if they can't afford that, many will qualify for Medicaid.