Hostess Reopening Plants, Without Union Workers

[tangent4ronpaul]

http://abcnews.go.com/Business/twink...ry?id=19043854

The bankrupt assets of Hostess Brands, Inc., the company responsible for Twinkies, Ho Ho's, Sno Balls and Ding Dongs, are being put back to work by a buyout firm. What's not being put back to work are the former Hostess unionized employees.

The unionized workers had been on strike when the company folded late last year.

The company had imposed a contract that would cut its 19,000 workers' wages — 15,000 of whom belonged to the workers from the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union (BCTGM) — by 8 percent. (The Teamsters was Hostess' largest union, followed by BCTGM.) The contract would have also cut benefits by 27 to 32 percent.

Hostess filed for Chapter 11 in January 2012. In November 2012, the company announced it would be shutting its doors for good. By that time, it had lost about $1.1 billion, largely due to bankruptcy filings.

But last month Apollo Global Management, LLC, and Metropoulos & Co., which owns Pabst Blue Ribbon and Vlasic pickles, bought the 83-year-old company for $410 million, renaming it Hostess Brands LLC. It is planning to re-open four bakeries over the next two and a half months, in Columbus, Ga.; Emporia, Kan.; Schiller Park, Ill.; and Indianapolis. It is also contemplating a fifth in Los Angeles.

According to a report in the Wall Street Journal, C. Dean Metropoulos, the company's chief executive, said that between now and September, he plans to inject $60 million in capital investments into the plants, and hopes to hire at least 1,500 workers.

But those workers won't be unionized.

"It appears that they are discharging the union contract in bankruptcy," said Matthew A. Kaufman, a labor attorney in Los Angeles who is not affiliated with the case.

While Metropoulos did not respond to interview requests from ABC News, he told the Journal that he does "not expect to be involved in the union going forward."

A spokesman for the Teamsters declined to comment. But in a November 2012 statement the Teamsters noted that the "BCTGM's leaders are putting Teamster members in a horrible position – asking them to support a strike that will put them out of a job when they haven't even asked all their members to go on strike."

A spokeswoman for the BCTGM did not return phone calls to ABC News. In a March statement, BTCGM president David Durkee said, "We share the enthusiasm, energy and passions exhibited by new ownership, and believe our highly-motivated and skilled workforce will serve as indispensable partners in the seamless re-opening of factories," he said.

But, according to the Journal, Metropoulos and his son, Daren, felt confident that they would be able to hire non-union employees near the new plants.

"We're trying to find the most qualified people in these local markets to come work for the company," Daren Metropoulos told the Journal.

*AWESOME!*

-t

[FrankRep]

Twinkies, Yes! Unions, No!

[bolil]

Good for Hostess. Looks like the unionized, that is to say exploited, pastry chef is going the way of the unionized undertaker.

[dannno]

Wow, so what if you really like unions AND pbr

[fr33]

Do NOT let them eat cake.

[bolil]

Wow, so what if you really like unions AND pbr

Beats me, beat yourself?

[tangent4ronpaul]

Wow, so what if you really like unions AND pbr

ummm... I suspect, come down to HT for a serious textual beat down and butthurt?

In general, I get the distinct impression ppl here do not like unions...

-t

[liberty2897]

In general, I get the distinct impression ppl here do not like unions...

-t

I don't like unions, but I keep my mouth shut. I also don't like getting my ass kicked or being dead.

[brushfire]

Too bad the fatcat union bosses are none the worse... LOL morons...

[tangent4ronpaul]

Too bad the fatcat union bosses are none the worse... LOL morons...

I think you just defined the Obama Administrations policy...

-t

[Carson]

On Fark the headline is;

Twinkies will return, unions won't. Ho Ho you bunch of Ding Dongs

Comments;

http://www.fark.com/comments/7720050...-of-Ding-Dongs

[sailingaway]

The bankrupt assets of Hostess Brands, Inc., the company responsible for Twinkies, Ho Ho's, Sno Balls and Ding Dongs, are being put back to work by a buyout firm. What's not being put back to work are the former Hostess unionized employees.

The unionized workers had been on strike when the company folded late last year.

The company had imposed a contract that would cut its 19,000 workers' wages — 15,000 of whom belonged to the workers from the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union (BCTGM) — by 8 percent. (The Teamsters was Hostess' largest union, followed by BCTGM.) The contract would have also cut benefits by 27 to 32 percent.

Hostess filed for Chapter 11 in January 2012. In November 2012, the company announced it would be shutting its doors for good. By that time, it had lost about $1.1 billion, largely due to bankruptcy filings.

But last month Apollo Global Management, LLC, and Metropoulos & Co., which owns Pabst Blue Ribbon and Vlasic pickles, bought the 83-year-old company for $410 million, renaming it Hostess Brands LLC. It is planning to re-open four bakeries over the next two and a half months, in Columbus, Ga.; Emporia, Kan.; Schiller Park, Ill.; and Indianapolis. It is also contemplating a fifth in Los Angeles.

According to a report in the Wall Street Journal, C. Dean Metropoulos, the company's chief executive, said that between now and September, he plans to inject $60 million in capital investments into the plants, and hopes to hire at least 1,500 workers.

But those workers won't be unionized.

"It appears that they are discharging the union contract in bankruptcy," said Matthew A. Kaufman, a labor attorney in Los Angeles who is not affiliated with the case.

While Metropoulos did not respond to interview requests from ABC News, he told the Journal that he does "not expect to be involved in the union going forward."

A spokesman for the Teamsters declined to comment. But in a November 2012 statement the Teamsters noted that the "BCTGM's leaders are putting Teamster members in a horrible position – asking them to support a strike that will put them out of a job when they haven't even asked all their members to go on strike."

more: http://gma.yahoo.com/twinkies-return...ews-money.html

h/t: http://weaselzippers.us/2013/04/26/a...to-bankruptcy/

[tod evans]

This comes as no surprise to me.

I'd be interested to see a list of the stockholders in the two Llc's that purchased the assets....

[DamianTV]

How big were the CEO's bonuses at Hostess again?

[KrokHead]

How big were the CEO's bonuses at Hostess again?

But big bonuses is CAPITALISM! UNION BAD!

Anyway, it's tragic that a lot of people lost their jobs, but this is a free market correction.

[ghengis86]

How big were the CEO's bonuses at Hostess again?

Enormous compared to worker salaries.

But, this was a combination of piss poor management by both Hostess and the union. I fault both equally.

[jmdrake]

You know, I have to wonder. Why is it that unions look at a situation like Hostess and say "Management is greedy and is mismanaging the company! Let's go on strike." as opposed to "Management is greedy and is mismanaging the company. Let's form our own company and compete against them!" The Teamsters union itself is big enough that it could have bought Hostess when it went into bankruptcy. Sorry, but I could care less how big the CEO bonuses were as long as they didn't get a government bailout.

[JK/SEA]

Will see. BCTG has enough clout yet to shut down all Union Bakeries in the United States and get the non-union, where applicable, to come to the table or face a loss of millions and more job losses. Its called 'negotiating'...Franz Bakery aka US Bakery in the Pacific Northwest, and Union, bought the Hostess Plant in Seattle. Still not clear what they intend to do with the land, building, and equipment.

[angelatc]

How big were the CEO's bonuses at Hostess again?

Something like .03 a worker, IIRC?

Liberal Alert: Class warfare....

[erowe1]

Too bad they're an LLC. I'd think about buying stock in them if I could.

[Cleaner44]

How big were the CEO's bonuses at Hostess again?

Something like .03 a worker, IIRC?

Liberal Alert: Class warfare....

Good call on the class warfare.

[FrankRep]

The Hostess brands website is out of date.


Hostess Brands is Closed.

We are sorry to announce that Hostess Brands, Inc. has been forced by a Bakers Union strike to shut down all operations and sell all company assets.

[sailingaway]

The Hostess brands website is out of date.


Hostess Brands is Closed.

We are sorry to announce that Hostess Brands, Inc. has been forced by a Bakers Union strike to shut down all operations and sell all company assets.

Well, it isn't open yet, they just closed the deal, they have to hire and open bakeries, they have three planned with potentially a fourth in Los Angeles. My twinkies would be fresh if I ate twinkies! (Ding Dongs aren't half bad, however, if they find their way into my life to begin with...)

[LibForestPaul]

Its wonderful how the Just Us system work. Discharging debt and obligations for those thay deem worthy.

[Weston White]

Wow, enough people still each this artificially crafted GMO gunk to churn out a profit?

I forecast that they will fall short again and ultimately fail; they were unable to sustain a workforce before when paying competitive salaries to pimp out their cruddy junk foods. Truthfully, who really wants to be eating products being mass-produced by a subset of employees earning around minimum wage and without benefits to boot? Sort of like eating at MacDonald’s, Taco Bell, et al—your better off just playing the Lotto instead, at then you could use your potential winnings to purchase truly whole foods, while avoiding debilitating sicknesses and obesity.

Oh yummiez tem’ Twinkies sound soo good, don’t tey nowz:

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.

[erowe1]

Wow, enough people still each this artificially crafted GMO gunk to churn out a profit?

I forecast that they will fall short again and ultimately fail; they were unable to sustain a workforce before when paying competitive salaries to pimp out their cruddy junk foods. Truthfully, who really wants to be eating products being mass-produced by a subset of employees earning around minimum wage and without benefits to boot? Sort of like eating at MacDonald’s, Taco Bell, et al—your better off just playing the Lotto instead, at then you could use your potential winnings to purchase truly whole foods, while avoiding debilitating sicknesses and obesity.

Oh yummiez tem’ Twinkies sound soo good, don’t tey nowz:

Yeah. The new Hostess is doomed to fail like McDonald's.

[Weston White]

Yeah. The new Hostess is doomed to fail like McDonald's.

No, sadly, cheap and fast fake-foods have become America’s core food staple—it is how the average American family spends “quality” time together. Come on in for a visit, bring your entire family, and don't forget to bring your EBT Card with you!

[tod evans]

Most of America doesn't place nutritional value above flavor and convenience, and it's even a smaller group that even acknowledges the genetic make-up of their food.

Now this EBT/food-stamp BS is something I'd like to see ended yesterday!

Wow, enough people still each this artificially crafted GMO gunk to churn out a profit?

I forecast that they will fall short again and ultimately fail; they were unable to sustain a workforce before when paying competitive salaries to pimp out their cruddy junk foods. Truthfully, who really wants to be eating products being mass-produced by a subset of employees earning around minimum wage and without benefits to boot? Sort of like eating at MacDonald’s, Taco Bell, et al—your better off just playing the Lotto instead, at then you could use your potential winnings to purchase truly whole foods, while avoiding debilitating sicknesses and obesity.

Oh yummiez tem’ Twinkies sound soo good, don’t tey nowz:

[Natural Citizen]

Many trade groups are actually overseen by the USDA. Is a revolving door with some who are one year employed and serve the USDA and the next they are using their power of influence working and representing some of these companies. This is a conflict of interest when at one minute they represent the interests of the fast food/junk industry and then the next minute they are representing the nutritional interest of Americans.

It is possible that this will be the first generation in history to have a shorter life span than their parents. Business is apparently boomin. Growth versus survival. Two entirely different models of existence that contradict one another when we lose our sense of definition relevant to citizenship, personhood and subsequently representatuion of, by and for. These are essentially government controlled markets givin the above model of the revolving door.

Given the fact that this generation may very well be the first to have a shorter life span than their parents the model does appear that growth trumps survival. Humans need to eat. Inc's that deal in poisoning the human body just grow. Killing everything in it's path that relies upon survival. Business as usual.