Hostess is Toast

[The Mystery Machine]

I thought I heard on the news that this company took the money from the employees 401K ( I think that is what they said) that they put in weekly and it is NO where....what did they do with it...they didnt put in anything and they didnt show where the money is...
To me that is stealing...
and we belonged to a union for the last 35 and a half years...they do good things and protect the workers...so I wont say anything about unions..vs non-unions...

If this is not right..please let me know ...I believe this is what I heard...

I have no idea but if I was a long term employee paying into the pension fund I would most certainly be scared of what is going to happen.

 

[Christopher Robin]

I agree. My point is that some posters wanted workers to take concessions so the company survives, which is socialism. The company decided to shutdown instead, which points toward Capitalism (best for the company). I just want people to realize what they are advocating.

To the bolded, absolutely incorrect.

 

[Sorsha]

I feel very very bad for the workers who will be out of work, especially right before Christmas. Not good timing.

However, I will not miss the company at all. IMHO most of their products are disgusting; and super-over-processed white breads and snacks that are full of HFCS and other junk have contributed way too much to our nation's problems with obesity and diabetes.

Also, because of board rules, I will simply state that I have no sympathy with huge companies that refuse to pay their workers a living wage or give them full-time hours or benefits. If a company cannot figure out a business model that allows them to take care of their own workers and still stay financially solvent, then they don't deserve to be in business. And that's all the further I will discuss it.

 

[Princess Dolly]

To the bolded, absolutely incorrect.

I admitted to taking liberty. Again the underlying sentiment is for workers to take less for the greater good, which I don't disagree with. I just find it ironic that there are times this is considered good and expected and then there are times when this is considered very bad and everything is going to heck. And then that "S" word gets slung around when it is inappropriate.

 

[Gumbo4x4]

I thought I heard on the news that this company took the money from the employees 401K ( I think that is what they said) that they put in weekly and it is NO where....what did they do with it...they didnt put in anything and they didnt show where the money is...
To me that is stealing...
and we belonged to a union for the last 35 and a half years...they do good things and protect the workers...so I wont say anything about unions..vs non-unions...

If this is not right..please let me know ...I believe this is what I heard...

I saw something about that as well - although, I thought it was pension money, not 401k. Regardless, if it happened, it's a real issue - but a separate issue.

Unions have their pluses & minuses. Sometimes protecting the workers (being treated unfairly) is a good thing. Other times (worker is worthless), it's a bad thing. Ensuring that people who deserve a job keep it, good thing. Ensuring that their demands will bankrupt the employer, bad thing.

 

[Stitchfans]

I love their cupcakes but haven't eaten any in ages since I have to be careful with chocolate. Such a shame. All those employees is the biggest shame. I really feel sorry for them.

 

[Princess Dolly]

Interesting. Hostess is now controlled by a group of investment firms, including hedge funds Silver Point Capital and Monarch Alternative Capital.

 

[FireDancer]

Unions have their pluses & minuses.

Absolutely. These union issues always end up with the "unions are the best thing ever" crowd against the "unions are ruining the country" crowd. The reality is in the middle. There are good things about them and bad things. Sometimes they help a situation and sometimes they hurt a situation.

It appears in this situation they hurt it. I'm sure they were only one of the problems, I don't think it came down to only the baker's union, but it is better to be part of the solution than part of the problem, no?

 

[cornflake]

Interesting. Hostess is now controlled by a group of investment firms, including hedge funds Silver Point Capital and Monarch Alternative Capital.

Ok, why is that interesting? They were in bankruptcy, were they not?

 

[Cannot_Wait_4Disney]

While you don't like to see people lose their jobs, sometimes they have no one but themselves to blame for that. As a company, Hostess was in trouble. The union workers knew that, but instead of working with Hostess to try and work out a deal that would help keep Hostess open and keep people in jobs, they didn't so now there are no jobs, instead of a number of jobs at a lesser wage. I just don't get why people have a hard time understanding, a little of something is a whole lot better than nothing.

Hostess demise can be laid at the feet of way too much debt in takeover restructuring, horribly out dated products, and bad management. Seriously, their plan to save the company was
Wait for it.
Wait for it.
BOOM!!!! BANANA FLAVORED TWINKIES!!!!!

And even as the company was crumbling under the weight of too much debt and slagging sales, and even as the unions that many are going to blame for all this were making concession after concession, the CEO got a 300% raise and the next top 4 executives received pay increases averaging 80%. If you want to actually build a baking business, you put someone with experience in charge. If you want to extract what you can out of a baking business regardless of the impact on the company itself, it's creditors or workers, you put "restructuring experts" and third tier managers with no experience in the industry in charge. And that's just what they did. Hostess could have survived if it had developed new products and marketed them. But nobody was put in charge that knew how to do that or even cared because there was no desire to do that. If the unions made any mistake it's that they actually thought the other side was bargaining in good faith when all along, they were not. The union could have caved on everything and it wouldn't have changed a thing. And at this point, there is no way the workers can even trust that management would have even kept to any contract they agreed to. They've broken them in the past. And now the union and the strike is being used for cover.

 

[donaldlovesdaisy]

I feel very very bad for the workers who will be out of work, especially right before Christmas. Not good timing.

However, I will not miss the company at all. IMHO most of their products are disgusting; and super-over-processed white breads and snacks that are full of HFCS and other junk have contributed way too much to our nation's problems with obesity and diabetes.

Also, because of board rules, I will simply state that I have no sympathy with huge companies that refuse to pay their workers a living wage or give them full-time hours or benefits. If a company cannot figure out a business model that allows them to take care of their own workers and still stay financially solvent, then they don't deserve to be in business. And that's all the further I will discuss it.

Really I assuming from this post you have run many successful businesses?

 

[Christine]

Hostess demise can be laid at the feet of way too much debt in takeover restructuring, horribly out dated products, and bad management. Seriously, their plan to save the company was
Wait for it.
Wait for it.
BOOM!!!! BANANA FLAVORED TWINKIES!!!!!

And even as the company was crumbling under the weight of too much debt and slagging sales, and even as the unions that the usual suspects are going to blame for all this were making concession after concession, the CEO got a 300% raise and the next top 4 executives received pay increases averaging 80%. If the unions made any mistake it's that they actually thought the other side was bargaining in good faith. They weren't. Even if the union caved in on everything it wouldn't have changed a thing. And at this point, there is no way the workers can even trust that management would have even kept to any contract they agreed to. They've broken them in the past. Liquidation was the plan all along. The strike had nothing to do with it other than management playing CYA by blaming it for the company's demise which was coming anyway.

I just don't get how this happens.

 

[SaraJayne]

Hostess demise can be laid at the feet of way too much debt in takeover restructuring, horribly out dated products, and bad management. Seriously, their plan to save the company was
Wait for it.
Wait for it.
BOOM!!!! BANANA FLAVORED TWINKIES!!!!!

And even as the company was crumbling under the weight of too much debt and slagging sales, and even as the unions that the usual suspects are going to blame for all this were making concession after concession, the CEO got a 300% raise and the next top 4 executives received pay increases averaging 80%. If the unions made any mistake it's that they actually thought the other side was bargaining in good faith. They weren't. Even if the union caved in on everything it wouldn't have changed a thing. And at this point, there is no way the workers can even trust that management would have even kept to any contract they agreed to. They've broken them in the past. Liquidation was the plan all along. The strike had nothing to do with it other than management playing CYA by blaming it for the company's demise which was coming anyway.

 

[Gumbo4x4]

I just don't get how this happens.

Doesn't make a lot of sense. From a practical standpoint however, $1 an hour for 18,000 people is a lot more expensive than a 300% raise for the boss. Not arguing right or wrong, just trying to put it in perspective.

And if liquidation was indeed the company's plans all along, I still say the unions shot themselves in the foot by standing firm. At this point, it matter not if they trusted Hostess or thought they'd get robbed again down the road. If you're on a sinking ship, and you know it's sinking, you can try your hardest to keep it afloat long enough for a lifeboat to come by. Or, you can jump into shark infested waters and swim for it. Personally, I'm afraid of sharks.

 

[goofyintoronto]

Just want to start off by saying i didnt read any of the previous posts....

OMG I couldnt agree more. The company warned employees that if they go on strike, the company might not survive. Well they went on strike anyway and guess what? All you people are out of a job. You gambled and thought the company was bluffing about closing down? Well now all you suckers are out of a job. What good came out of the strike? NOTHING! No sympathy from me either.

And now no one has a job who works there!! Guess the strike was not what they were hoping for. Sorry for those who did not strike and stuck around to work hopefully something good will come out of this for them but the strikers not an ounce of sympathy from me they walked out on their job so they are responsible for their unemployment now.

Totally agree. I'd rather see small bakeries succeed.

Hopefully this will be good news for small, locally owned bakeries. I'd much rather see them succeed than any big food manufacturing conglomerate which is at least partially responsible for this nation's current state of health.

I dont eat twinkies etc anymore, but im still sad to see them go. Such a shame.



EDIT: Just read the below. I didnt know all that. Interesting. Thanks for posting.

And even as the company was crumbling under the weight of too much debt and slagging sales, and even as the unions that the usual suspects are going to blame for all this were making concession after concession, the CEO got a 300% raise and the next top 4 executives received pay increases averaging 80%. If the unions made any mistake it's that they actually thought the other side was bargaining in good faith. They weren't. Even if the union caved in on everything it wouldn't have changed a thing. And at this point, there is no way the workers can even trust that management would have even kept to any contract they agreed to. They've broken them in the past. Liquidation was the plan all along. The strike had nothing to do with it other than management playing CYA by blaming it for the company's demise which was coming anyway.

 

[Princess Dolly]

Hostess demise can be laid at the feet of way too much debt in takeover restructuring, horribly out dated products, and bad management. Seriously, their plan to save the company was
Wait for it.
Wait for it.
BOOM!!!! BANANA FLAVORED TWINKIES!!!!!

And even as the company was crumbling under the weight of too much debt and slagging sales, and even as the unions that the usual suspects are going to blame for all this were making concession after concession, the CEO got a 300% raise and the next top 4 executives received pay increases averaging 80%. If the unions made any mistake it's that they actually thought the other side was bargaining in good faith. They weren't. Even if the union caved in on everything it wouldn't have changed a thing. And at this point, there is no way the workers can even trust that management would have even kept to any contract they agreed to. They've broken them in the past. Liquidation was the plan all along. The strike had nothing to do with it other than management playing CYA by blaming it for the company's demise which was coming anyway.

Corporate greed? I am shocked! And yes when you have hedge funds involved you know the liquidation is coming.

 

[dsneprincess]

While you don't like to see people lose their jobs, sometimes they have no one but themselves to blame for that. As a company, Hostess was in trouble. The union workers knew that, but instead of working with Hostess to try and work out a deal that would help keep Hostess open and keep people in jobs, they didn't so now there are no jobs, instead of a number of jobs at a lesser wage.

I just don't get why people have a hard time understanding, a little of something is a whole lot better than nothing.

This exactly!! I feel no sympathy for these people that walked out on their jobs. They made their beds, let'em lie in it.

I do feel bad for the rest of us that will miss Hostess products & be forced to take care of a whole bunch more people with economic handouts. I personally don't think they should see a dime, but most will end up better off not working. Sad, what this country has become.

 

[JoiseyMom]

I am thinking there is a good chance some of these products will be bought by other companies. Hostess owned lots of brands, not just junk either. THey made Natures pride breads, and those had good ingredients, I really liked them.

I can see Nabisco or someother company at least buying recipes. I can't see no more Twinkies (I havent eaten them in decades) or Yodels or devil dogs. I see them being made elsewhere.

But the little ppl lose their jobs, and the hedgefund rich guys sell the company by the recipe and walk away even richer.

 

[usnuzuloose]

Who knows it may make an increase for Little Debbie and make more jobs. It is hard when you work for a union. The top people of Hostess should have taken a decrease in the wages and bonuses. I have seen so many corporate top people get bonuses that are huge. And the workers wages never got an increase. I hope they all find jobs.

 

[Christine]

I personally don't think they should see a dime, but most will end up better off not working. Sad, what this country has become.

I seriously doubt that someone make a decent wage with decent healthcare benefits is going to be "better off not working."