Topic: Unions Killed the Twinkie

[J Mack]

Hostess Brands Inc., the maker of Twinkies and Wonder Bread, is seeking bankruptcy protection, blaming its pension and medical benefits obligations, increased competition and tough economic conditions.

The Chapter 11 filing comes just two years after a predecessor company emerged from bankruptcy proceedings.

That company, called Interstate Bakeries and based in Kansas City, Mo., filed for bankruptcy protection in 2004. It emerged in February 2009.

But Hostess said that its previous efforts to produce incremental change, including the prior Chapter 11 case, were insufficient.

In its filing with the U.S. Bankruptcy Court for the Southern District of New York, Hostess disclosed that its biggest unsecured creditor is the Bakery & Confectionary Union & Industry International Pension Fund, to which it owes approximately $944.2 million.

Its second-largest unsecured creditor, Central States, Southeast and Southwest Areas Pension Plan is owed far less, about $11.8 million.

Hostess President and CEO Brian Driscoll said in a statement that the company is working to reach a consensual agreement with its unions to modify its collective bargaining agreements. The company said that its current cost structure is not competitive mostly because of legacy pension and medical benefits obligations and restrictive work rules.

Hostess said those issues, coupled with more competition and the difficult economic conditions, created a worsening liquidity situation that drove its need to reorganize.

In its bankruptcy filing, Hostess also listed its estimated assets between $500 million and $1 billion and its estimated liabilities at more than $1 billion.

The privately held Irving, Texas-based company said that it will be able to maintain routine operations thanks to a $75 million financing commitment from a group of lenders led by Silver Point Capital LP.

Reports had surfaced earlier in the week that the bakery company was planning to make such a filing.

Hostess said that it will look to restructure into a “strong, competitive” company. It will continue to run bakeries, outlet stores and distribution centres, and deliver its goods during the process. The company said it does not anticipate any disruptions in the making of or delivery of its breads or cake products and reassured that its popular brands, which also include Drake’s, Ding Dongs and Ho Hos, will still be available.

Hostess said that it is looking to “create a sustainable cost structure with competitive employee benefit plans.” It also hopes to modernize its systems, fleets and plants to keep pace with customer needs.

“This company has tremendous potential if we can remove the barriers to success,” Driscoll said.

Hostess has about 19,000 employees and operates in 49 states. Annual sales are about $2 billion, according to the company’s website.
Phillip Wilson of the Labor Relations Institute breaks down why Hostess filed for Chapter 11 bankruptcy protection.

http://video.foxbusiness.com/v/1383561509001/unions-killed-the-twinkie/

Now I'm pissed!

[Havanagunner]

I guess I don't understand just what you are pissed about.

1. The fact that Hostess sat across a table and said yes to what the workers asked for. (No gun was held to their head when they said yes).
 
2. The fact that the hopes and dreams of American families who worked hard for a retirement where they can enjoy the fruits of their labor, is stolen by the misuse of agreedupon pensions and retirement funds.

3. The fact that Hostess can now claim Chapter 11 and never pay the people for the work they did in good faith.

4. Or the fact that Corporate Hostess will never loose their high paying jobs and because of their mismanagement of their company can now pay the American workers less than a living wage.

I saw an interesting segment on the news a while back. It was a program where Donald Trump and some others had joined together to set up apprenticeships for up to 1000 young people. Funny when the Unions were strong in this country, they set up 100's of thousands of apprenticeships every year and America had the greatest work force of any nation anywhere. Now that the unions have been reduced to a very small portion of the American work force, and most apprenticeships have been weakened or destroyed it is feasible for corporate to go over seas to get their labor at a cheaper cost. The last job I worked in Washington State we were constantly threatened that if we didn't run faster, take more safety risks and cut corners we would be replaced with a Korean work force. It has happened, and Is happening all over this country as we speak. I feel for the young worker of today. I have retired with my three pension funds and the insurance I paid for every week of my working life (Social Security). And if managed properly I should be able to keep my home and die in a respectable manner. But if I mismanage my money like hostess did,I most likely will die in the gutter.

 

[emathey]

What's fair is fair!  I bet twinkles have killed many of over eaters.

 

[Evergreen]

Emathey you beat me to it.. How many people have twinkies killed.. 

But, I will sure miss those strawberry/vanilla creme twinkies I use to enjoy so much as a kid... 

Maybe, this is a good time to stock up on as many twinkies as we can..  I hear they never go bad, so who knows, you may get a premium for them a decade down the road.

[J Mack]

I guess I don't understand just what you are pissed about.

I most likely will die in the gutter.

Well that sure took a nasty turn. I’m glad you were able to vent.

Me, I’m not really pissed about the Twinkies as much as I’m disappointed that our future generations won’t be able to enjoy the delicious little yellow cakes with the cream filling my generation called Twinkies!

I guess on a positive note we no longer will have attorneys trying the "Twinkie defense"

[Kcboats]

  :rofl2:all I can think of is Woody Harelson in Zombieland...man is he gonna be pissed!!! LMAO!!!!

[High Wall]

Twinkies are nasty.  I don't understand how people can put them down their necks.  Seconds after eating one, you can feel the grease from them oozing from your skin.  Whatever they put in the goddam things goes through you faster than DMSO.

[J Mack]

Whatever they put in the goddam things goes through you faster than DMSO.

Looks and sounds healthy to me.


Enriched Bleached Wheat Flour [Flour, Reduced Iron, B Vitamins (Niacin, Thiamine Mononitrate (B1), Riboflavin (B2), Folic Acid)], Corn Syrup, Sugar, High Fructose Corn Syrup, Water, Partially Hydrogenated Vegetable and/or Animal Shortening (Soybean, Cottonseed and/or Canola Oil, Beef Fat), Whole Eggs, Dextrose. Contains 2% or Less of: Modified Corn Starch, Glucose, Leavenings (Sodium Acid Pyrophosphate, Baking Soda, Monocalcium Phosphate), Sweet Dairy Whey, Soy Protein Isolate, Calcium and Sodium Caseinate, Salt, Mono and Diglycerides, Polysorbate 60, Soy Lecithin, Soy Flour, Cornstarch, Cellulose Gum, Sodium Stearoyl Lactylate, Natural and Artificial Flavors, Sorbic Acid (to Retain Freshness), Yellow 5, Red 40.