After the Bakery, Confectionary, Tobacco Workers and Gran Millers International Union attempted to extort Hostess out of unfair and expensive concessions, union workers will be left out of jobs as twinkies return to production.
NBCNEWS.COM reports that “Twinkies are coming back—but under a new management that vows to use nonunion workers.”
A third of Hostess’ production was union labor, but after union members struck, the manufacturer had no choice but to close and reorganize.
Business experts like Alan James of Pace University say, “Unions have been very good in the past making sure we have benefits like maternity leave, but their leadership continues to think only of themselves and not their members.”
Doubting the value of unions, James continued saying “Why should I pay dues when I don’t see any positive results?’
History professor Daniel Opler feels that the Hostess showdown showed the weakness of unions.
“There’s no question the bakers union that rejected a settlement made a tactical error here,” he said.
Unions have pushed several showdowns in recent years. Often asking for concessions that would leave companies unable to compete.
States are empowering workers to ditch expensive union dues by enacting right-to-work laws and workers are supporting them in ever increasing numbers.
Business analyst James Alan said feels that low membership rates could indicate that unions are weakening.
No need to test the longevity of your Twinkies purchased pre company breakup, your favorite snack may be back on the shelves as soon as July!
A Columbus, Georgia Dolly Madison plant is scheduled to be up and running by July. The reformulated Hostess Brands expects the most popular products to be back on the shelves this summer.
In a bankruptcy forced liquidation Hostess due in part to a lengthy impasse by striking workers, the brand and five of the bakeries were bought in a joint venture by two private equity companies.
The Dolly Madison plant in Columbus, Ga., will be the first to reopen. The ‘new’ bakery is inviting former workers to apply for positions. There has been no talk of unions in the new company.
In its new iteration, the company will hire 200 workers for jobs starting this summer. Another 100 jobs will follow. Columbus Mayor Teresa Tomlinson said her town is better off with the opportunities — whether they’re union or not.
“I think we’re very happy to have the jobs back; 300 jobs is better than zero jobs,” she said.
Read more at CNN Money.
The buyout firms Apollo Global Management, LLC and Metropoulos & Co. have agreed to purchase the Hostess and Dolly Madison cake brands, including Twinkies. Recall that after the Hostess company closed its plants and declared bankruptcy after its unions went on strike in November.
The proposed buyout includes the brands, bakeries and some of the equipment but requires bankruptcy court approval before the sale will be final.
The new buyers promise to bring back the popular Hostess products including Twinkies, Ding Dongs, and HoHos. They also state that they will be providing jobs around the country. However, it is unknown how many of the 18,500 former Hostess workers will find work as the buyers plan to outsource distribution and produce snacks in existing bakeries causing union promises of replacement jobs to be in question.
Read more at ABC.com.
Picture courtesy Wikimedia
This could be it. The end of the Hostess Twinkie. Of course, those still in their packages may last forever, but it’s possible there will be no more Twinkies.
The Bakery, Confectionery, Tobacco Workers and Grain Millers union (BCTGM) has gone on strike against manufacturer Hostess. The company announced today they will file for liquidation if striking employees do not return to work by the end of the day. According to Hostess:
“We simply do not have the financial resources to survive an ongoing national strike,” said Gregory F. Rayburn, the Company’s Chairman and CEO. “Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire Company, which will result in the loss of nearly 18,000 jobs. It is now up to Hostess’ BCTGM represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this Company, or cause massive financial harm to thousands of employees and their families.”
The BCTGM response claims that Hostess has had significant mismanagement from the top down claiming that the six CEO’s in the past eight years have had no bread and cake baking industry experience. According to the union website the workers and their union have ‘absolutely no responsibility for the failure of this company.’
“I am sure that our members would be agreeable to return to work as soon as the company rescinds the implementation of the horrendous wage and benefit reductions, including pension, and the restoration of the cuts that have already taken place.”
One has to wonder how much better off the Hostess workers will be filing for unemployment next week? Is no job better than a salary reduction? Across the country many industry workers have taken sizable cuts rather than losing their job. Is the union forcing workers to ‘cut off their nose to spite their face?’