Hostess to close lay off 18,500 after crippling union fight - Triumph675.Net Forums
Stuff of interest General Off-Topic topics - anything that's on your mind. Please read the rules before posting

Thread Tools Display Modes
post #1 of 19 Old 11-16-12, 18:04 Thread Starter
Senior Member
Moeman's Avatar
Join Date: Jan 2012
Location: SW FL
Posts: 1,317
Thanks: 16
Thanked 9 Times in 7 Posts
Thumbs down Hostess to close lay off 18,500 after crippling union fight

Hostess to close, lay off 18,500 after 'crippling' union fight | Fox News

A small union's stubbornness in contract talks with Hostess is being blamed for the shutdown of one of America's snack food icons, the loss of 18,500 jobs just before the holiday season and much-needed tax revenue from hundreds of plants and shops across the country.

The privately-held company had reached a deal with the Teamsters, but a smaller union representing bakery workers refused to agree to concessions, prompting the mass layoffs and closing down of hundreds of plants, bakeries and delivery routes. That prompted harsh words from both the company and from Teamsters officials.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Chief Executive Gregory Rayburn said in a statement. "Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders."

The company said it will continue to ship out its well-known products until inventory runs out.

The national strike by members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union (BCTGM) that began last week decimated the 82-year-old company’s ability to produce and deliver products at roughly 12 of its 33 plants. The company announced earlier in the week that the ax would fall on Friday if the strikers didn’t get back to work, but the union didn’t blink. BCTGM President Frank Hurt said Thursday that the crisis was the "result of nearly a decade of financial and operational mismanagement" and charged management was scapegoating workers to allow the Wall Street investors who own Hostess to sell.

Calls seeking comment from Hurt were not returned early Friday.

Marty Zimmerman, secretary-treasurer for BCTGM Local 85, told Fox40 from a Sacramento picket line early Friday that workers had been at “wits end” with Hostess brass.

“Well, the mindset is we’re standing strong, absolutely,” Zimmerman told the station. “I mean, they’ve taken our pensions away, we’ve had seven CEOs in the last 10 years; this company has been so mismanaged. Really, we’re at our wits end and enough is enough”

The Irving, Texas-based company had already reached an agreement on pay and benefit cuts with its largest union, the International Brotherhood of Teamsters. On Thursday, Teamsters officials blasted the smaller union for not seeking a “solution” in the process or to engage in negotiations.

“The BCTGM chose a different path, as is their prerogative, to not substantively look for a solution or engage in the process,” the statement read. “BCTGM members were told there were better solutions than the final offer, although Judge Drain stated in his decision in bankruptcy court that no such solutions exist. Without complete information, BCTGM members voted by voice votes in union halls. The BCTGM reported that over 90 percent rejected the final offer and three of its units ratified the final offer.”

In a letter to employees posted on the company’s website, Rayburn said all employees would eventually lose their jobs, some sooner than others.

"Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," Rayburn’s letter read. “As you know, for many months the Company has been working with our unions, lenders and other stakeholders to reach a consensual resolution to legacy costs and labor contracts. Despite everyone’s considerable efforts to move Hostess out of its restructuring, when we began implementing the Company’s last, best and final offer, the Bakers Union chose to stage a crippling strike.”

Because the company is privately held, its financials were not available. But has struggled for several years, with some blaming America’s increasing appetite for healthier fare. The company sought concessions from employees, but instead got a costly strike that further crippled it, according to officials, who told a federal bankruptcy court it would lose up to $9.5 million from Nov. 9 to Nov. 19 in lost sales and increased costs. The company has cancelled all orders in process and said any baked goods currently in transit would be returned to shippers.

“These losses and other factors, including increased vendor payment terms contraction, have resulted in a significant weakening of the debtors’ cash position and, if continued, would soon result in the debtors completely running out of cash,” the filing read.

Hostess will now sell its popular brands like Ding Dongs, Ho Ho’s and Sno Balls, along with the closure of 565 distribution centers, 570 bakery outlet stores and roughly 5,550 delivery routes.

Lenders have agreed to allow Hostess to continue to access $75 million in financing put in place at the start of the bankruptcy cases to fund the sale and wind-down process, subject to U.S. Bankruptcy Court approval.

BCTGM workers began striking at some Hostess production facilities without notifying Teamsters officials on Nov. 9, the Teamsters said.

“This unannounced action put Teamster members in the difficult position of facing picket lines without knowing their right to honor such a line without being disciplined,” the statement continued.
Moeman is offline  
Sponsored Links
post #2 of 19 Old 11-16-12, 18:10
Senior Member
louie3's Avatar
Join Date: Dec 2008
Location: atlanta
Posts: 3,521
Thanks: 0
Thanked 0 Times in 0 Posts
Wrong section.

come join TheClymb

"Life is all about maximizing experiences and minimizing regrets, and the last thing you want is to regret the experiences you didn't have." -MadMel
louie3 is offline  
post #3 of 19 Old 11-16-12, 18:20 Thread Starter
Senior Member
Threadstarter Threadstarter
Moeman's Avatar
Join Date: Jan 2012
Location: SW FL
Posts: 1,317
Thanks: 16
Thanked 9 Times in 7 Posts
I am sorry I thought general forum would be sufficent
Moeman is offline  
post #4 of 19 Old 11-16-12, 19:10
BOTM Winner
Nastybutler's Avatar
Join Date: May 2012
Location: Seward's Folly
Posts: 2,683
Thanks: 259
Thanked 105 Times in 97 Posts
Let the Twinkie hording begin!

2012 Street Triple (Trinity) - Phantom Black
2014 Audi A5 - Scuba Blue

Trinity's Build Thread
Nastybutler is offline  
post #5 of 19 Old 11-16-12, 20:57
Junior Member
Mounivong's Avatar
Join Date: Aug 2012
Location: Salina, KS
Posts: 127
Thanks: 0
Thanked 0 Times in 0 Posts
The guy from zombie land would be so pissed
Mounivong is offline  
post #6 of 19 Old 11-16-12, 21:13
Ranger Jay
Junior Member
Ranger Jay's Avatar
Join Date: Dec 2011
Location: Dallas, TX
Posts: 18
Thanks: 0
Thanked 0 Times in 0 Posts
The executives for the company gave themselves huge raises. The CEO went from $750,000 a year to $2,500,000. Nine others got raises around $400,000 or so. Yet, they raided the employee pension fund and demanded an 8% pay cut for the rank and file. They blame things on the "union." Welcome to American labor in the 21st century...

Sent from my iPhone using App
Ranger Jay is offline  
post #7 of 19 Old 11-16-12, 22:35
Senior Member
OKStriple's Avatar
Join Date: Aug 2010
Location: Norman, OK
Posts: 2,288
Thanks: 76
Thanked 55 Times in 38 Posts
But according to the article, even the Teamsters union blamed the other union (BCTGM) for holding a strike without notifying the Teamsters (leaving the teamsters workers not knowing if they were required to honor the picket line or not) and said that the BCTGM refused to negotiate when the Teamsters DID come to an agreement. Based on the article and what the Teamsters were saying, the BCTGM was driving them into the ground.

As for the CEO, I don't know how much longer he had planned to work, but if he stayed for 10 years (assuming no new raises or bonuses) he would have made 7,500,000. Instead he walks out with 2,500,000. It looks to me like even management would have been better off staying open and they had a proposal that would allow them to stay open. One union worked with them, one union didn't

In another article on this, I read
"Kenneth McGregor, a shipper for Hostess in East Windsor, Conn., arrived at the plant Friday morning and said he was told he was laid off immediately.

He blamed the bakery workers union for rejecting a proposed contract.

"They screwed us big time," he said."
So it looks like the employees are blaming the union also

2009 Matte Graphite Street Triple R. Arrow Slip on's, TecSpecs, GB Racing Protection bundle, CRG Lane Split Mirrors, on Michelin Pilot Road III

7643 posts behind MacBandit and getting further behind each day
OKStriple is offline  
post #8 of 19 Old 11-16-12, 22:57
Senior Member
Hokie's Avatar
Join Date: Sep 2009
Location: Seattle, WA
Posts: 6,591
Thanks: 19
Thanked 155 Times in 123 Posts
Originally Posted by Moeman View Post
I am sorry I thought general forum would be sufficent
Um, no. This has nothing to do with Daytona 675's or Street Triples.
Hokie is offline  
post #9 of 19 Old 11-16-12, 23:33
Polystigma's Avatar
Join Date: Oct 2010
Location: Los Angeles, CA
Posts: 563
Thanks: 2
Thanked 2 Times in 2 Posts
I almost want to engage in this...

However, I will refrain. This is a motorcycle forum. Plenty of politics forums on the net.

Mods, please delete this thread.

Polystigma is offline  
post #10 of 19 Old 11-24-12, 16:19
Noob Hazer
TwoWheeledWonder's Avatar
Join Date: Sep 2010
Location: KC,MO
Posts: 12,051
Thanks: 73
Thanked 240 Times in 181 Posts
Originally Posted by Ranger Jay View Post
The executives for the company gave themselves huge raises. The CEO went from $750,000 a year to $2,500,000. Nine others got raises around $400,000 or so. Yet, they raided the employee pension fund and demanded an 8% pay cut for the rank and file. They blame things on the "union." Welcome to American labor in the 21st century...

Sent from my iPhone using App
Welcome to America. The $ runs this country, but really if you eat Twinkies or the likes you should be more disappointed in yourself.

2010 TornadoRed D675 Trackbike
TwoWheeledWonder is offline  
Sponsored Links


Quick Reply

Register Now

In order to be able to post messages on the Triumph675.Net Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Forum Jump

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

For the best viewing experience please update your browser to Google Chrome