Sad news this morning. Hostess Brands is closing its doors after the bakers union went on strike. The Twinkie is no more, along with some 18,500 jobs.
Hostess has been trying to save its self for some time now, but the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union had refused the contract offer. Rather than take some cuts, these morons decided to kill the company. Here are some details from CNN Money:
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.
Once again, we see the results of greedy unions. They refuse to see that business is bad and continue with their demands for higher wages and benefits.
The closing will result in Hostess’ nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide. The bakers’ union represents around 5,000.
I read that the other union, the Teamsters, did approve the new contract, barely. I guess Teamsters members are a bit more intelligent then the bakers union. Probably due to them nor spending the day snorting flour and sugar.
The company had given a 5 p.m. ET deadline (November 15, 2012) for the bakers to return to work or face a shutdown of the company. The unions at Hostess could not be reached immediately for comment on the decision.
Why am I not surprised? Here we are, moving into the holiday season, (Thanksgiving and Christmas), and all these people have just been tossed on to the unemployment line. I have a feeling that the workers who had agreed to the cuts are going to be a might peeved at the bakers union.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said CEO Gregory Rayburn in a statement.
Hostess has been on life support for some time now. They filed for bankruptcy in January of this year and tried to reorganize the company. Of course, since they were a union company, their chances were rather small that they could pull it off. This is one of the reasons having a union in a company is so bad these days. A unionized company prevents management from doing things to streamline the business. Sometimes they have to close down plants and lay people off. It isn’t good and certainly isn’t fun. Still, a few people losing their jobs, with the chance of getting them back if things improve is far better then what has just happened with the workers at Hostess. Now, they get to enjoy Funemployment. With the way the economy is starting to crater since Obama managed to get reelected, these people will probably not find any new jobs.
When I first heard about the problems with Hostess, I saw a list of plants and distribution centers around the country. I noticed that several were in California. As I mentioned the other day, California is in the process of destroying its self. Without a doubt, Hostess would have closed most, if not all their facilities in California. Of course, they would have needed permission from the unions and we all know that wouldn’t have happened. Now, instead of 1000-3000 people out of work, all of them are.
Hostess will move to sell its assets to the highest bidder. That could mean new life for some of its most popular products, which could be scooped up at auction and attached to products from other companies.
And you can bet that the odds of those bakers getting their jobs back is slim to none. I would also suspect that any company buying the brand names won’t be unionized and a lot more nimble and able to respond to the markets. There’s a reason private sector unions are going the way of the dinosaur, and the death of Hostess is a good example.
Now what is Tallahassee going to do? His beloved Twinkie is no more. Maybe he will start hunting Union zombies.
~The Angry Webmaster~