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Hostess Unions Resist New Rules And Equity

From the New York Post:

Hostess’ labor woes starting to Sno-Ball

By JOSH KOSMAN
January 16, 2012

Talks to restructure Hostess, the maker of Twinkies and Wonder Bread, are expected to start distastefully, The Post has learned.

The company, which filed for Chapter 11 protection Jan. 11 due in part to high labor costs, will ask its 20,000 mostly unionized workers to accept stiff concessions, which may include new rules that will force drivers to load their own trucks, adding a couple of hours to the work day and having workers pay more for health insurance.

Those concessions don’t seem to be too "stiff" if it is that or have no job.

There could also be demands for thousands of layoffs, including some in the New York metro area.

How many will be laid off forever if the company folds?

A person close to the situation who would like to see the union members accept serious concessions says he believes there is only a 50 percent chance that they will. The unions did not accept a somewhat similar proposal last year from Hostess — prompting last week’s bankruptcy filing

They sure showed management!

The company, since emerging from bankruptcy in 2009, has burned through about $250 million in cash, it said in a Bankruptcy Court filing.

If the unions agree to concessions, the Teamsters and Bakery, Confectionery, Tobacco Workers and Grain Millers International Union will get the chance for significant equity in the business, the insider said.

So Hostess is even offering the union employees ownership in the company. And yet they are still probably going to reject the deal:

A union member said, “It is clear that any significant concessions demanded from route people will be overwhelmingly rejected.”

Hostess could be broken up and sold off this summer if the unions do not agree to major concessions, The Post has learned

Get that wicked Bain Capital on the phone.

This article was posted by Steve Gilbert on Tuesday, January 17th, 2012. Comments are currently closed.

13 Responses to “Hostess Unions Resist New Rules And Equity”

  1. GetBackJack

    When I first read the headline with Hostess in it, my immediate thought was holy crap, SEIU has organized the infamous Hostess Clubs of Asia?

    Because pimps and whores know each other on sight.

  2. proreason

    Steve is right. This appears to be a marriage made in heaven between the unions and Bain.

    Bring it on.

  3. P. Aaron

    Little kids’ snacks, the victim of union greed.

  4. Petronius

    Hostess is organized by twelve unions.

    It has been bankrupt twice in the last three years.

    Enuff said.

    • tranquil.night

      So, what, are twinkies going to be made in China now? That’s very unsettling.

    • proreason

      If Twinkies fall, there is no barrier to the sea.

    • Petronius

      We must not allow a Twinkies gap.

      Hopefully Kraft, Sara Lee, Kellogg’s or somebody will rescue the Hostess’ brands from the clutches of the unions.

      If all else fails, we’ll plug the hole with Moon Pies, RC Colas, and deep-fried Mars bars.

  5. yadayada

    sssoooo…..
    this must be a dilemma of astronomical proportions for the o’bammies
    – to side with the union,
    – or to help eliminate those evil child obesity pellets known as twinkies…….
    also, remember – the gay rights faction heavily supports Twinkie the Kid

  6. sticks

    I worked briefly at Hostess, hated the job, the union bosses were tyrants their rules were insane, productivity was against the law, three people assigned to do one man’s work. If you tried to be productive it was because you were mean and selfish, trying to take someone elses work away. Unions always manage to leave a bad taste in my mouth.

    • Helena

      There’s a wonderful British comedy from the late ’50s “I’m Alright, Jack” with Peter Sellers (came out in 1960), in which a new factory employee naively tries to do his job in an efficient and energetic way and causes union riots and a walkout. Sellers is hilarious as the union shop steward. It was made before the British elite went completely socialist as in: “The Rise and Rise of Michael Rimmer” 1970, with Peter Cook and John Cleese). Very interesting cultural history lessons.

  7. JohnMG

    …..”So Hostess is even offering the union employees ownership in the company. And yet they are still probably going to reject the deal:…..”

    The unions aren’t stupid. Why should they want to be owners of a company that’s been bankrupt twice and going there again? Nosiree Bob. They want to own healthy companies……..like Chrysler and GM. You know, the ones they helped build into industrial giants. /s/

  8. Mithrandir

    So they are asking ROTTEN EMPLOYEES to become ROTTEN PART-OWNERS? –I have a feeling this is not going to end well.

    As I have always said about union people, PROSPERITY NOW (over-demanding pay / working conditions / health care, pensions) AUSTERITY LATER (when they bankrupt the system, and all their bennies disappear).

    “Prosperity Now, Austerity Later.” –Mithrandir.

  9. wirenut

    Send in Walker, Wisconsin Ranger! See Scott kick the snot out of union thugs and left-overtures.
    Why, at high-noon, he made 14 wannabe marxists outta state to lay low in Chi-town. Said one taxpayer.
    Yet, another taxpayer was quoted as saying, He rode into town and opened up a can of whoop-ash on those heathen scum union bigshots, end quote. While Wisconsin struggles with union contracts, a recall election with “NO” opponent is coming. Just, “keep paying your taxes” plan by the unions. This is coming to a town near you. So saddle up, ride hard and talk straight. I’m all for Twinkies, but if I wanted a Ho-Ho,
    I’d call the Whitehouse.
    .


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