Unions Killed the Twinkie

[patric]

Saw them out front of the Wonder Bread factory on 11th on my way in this morning.  Was going to ask but don't need to now.  Signs essentially say "Say NO to pay cuts".  Appeared to be about thirty people.

Did they look like employees, or homeless stand-ins hired by a union?

[guido911]

Looks like I will be heading over to the Hostess shop soon and drop some money. And I do not even eat that stuff.

[Gaspar]

Done!
Union wins.  18,500 to be unemployed.


"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said Gregory F. Rayburn, chief executive officer. "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."

Read more: http://www.myfoxdfw.com/story/20115859/hostess-going-out-of-business-nearly-18000-to-be-laid-off#ixzz2COJNUGe6

[nathanm]

Yes, the unions are going to be real happy about all the money they're getting stiffed. And they're the ones that made the decision to load the company down with debt, too. Funny how management bears no responsibility for the situation in your mind.

[Ed W]

Anyone want to speculate about Hostess becoming a brand new maquiladora just across the border?  Their US workers wouldn't accept Mexican wages and benefits, but I'll bet real Mexicans will.

[RecycleMichael]

Hostess was taken over by venture capital firms Silver Point Capital and Monarch Alternative Capital.

They are closing the company and selling off the assets.

Got to love the venture capitalists. 

[Ed W]

But the name is still worth something, Michael, just like the Schwinn name was worth purchasing and applying to some cheaply made imports.  I wouldn't expect 'Hostess' to go away.

[carltonplace]

They will be sold and the factories opened with minimum wage jobs.

[Hoss]

Hostess was taken over by venture capital firms Silver Point Capital and Monarch Alternative Capital.

They are closing the company and selling off the assets.

Got to love the venture capitalists. 

Cue erfzombie in 3...2...1

[Gaspar]

Probably Bush's fault.

[Hoss]

But the name is still worth something, Michael, just like the Schwinn name was worth purchasing and applying to some cheaply made imports.  I wouldn't expect 'Hostess' to go away.

I'm hearing rumblings of Morita (sp?) stepping in.

Cue stupid "Happy Days" references in 3...2....1

[swake]

They interviewed an employee here in Tulsa on the radio this morning and he wasn't upset over being unemployed, he said the new deal was so bad that employees felt better off finding another job.

[Conan71]

They interviewed an employee here in Tulsa on the radio this morning and he wasn't upset over being unemployed, he said the new deal was so bad that employees felt better off finding another job.

I hope they are able to.  In Tulsa that shouldn't be too hard.  Other cities, probably not as easy to find something similar.  I'm curious what pay range these jobs were in, does anyone know?  The sticky issue seems to be the 8% pay cut and 30% cut in benefits. 

U/E pays what, 75% of wages up to a certain amount?  Looks like a lot of those folks just got a 25% pay cut and no benefits.

[carltonplace]

http://www.glassdoor.com/Salary/Hostess-Brands-Salary-E329177_P2.htm

Line workers are listed at $38K to $41K

$41K is about $19 per hour.

[zstyles]

19.00 An hour to bake cupcakes...not a bad gig, I think they will see the grass isn't greener on the other side...