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Old 11-17-2012, 02:48 PM   #1 (permalink)
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DJW is reading this now saying WTF is this? DJW is reading this now saying WTF is this?
Can't have your twinkie and eat it too

Apparently the unemployment line is better than a job. Although the re-structure contract was approved by the Teamsters, the Bakers Union (wait - the what?) decided to kill the Hostess Company rather than take a cut in pay. (Hostess includes: Wonder bread, Dolly Madison, Drakes and Beefsteak). Result? Thousands head to the unemployment line.

While I personally won't miss the twinkies, the loss of Suzy-Qs is unforgivable. Too bad, I guess that Hostess wasn't too big too fail.

Quote:
HOSTESS BRANDS TO WIND DOWN COMPANY AFTER BCTGM UNION STRIKE CRIPPLES OPERATIONS
Friday, November 16, 2012 at 7:00AM

Irving, TX – November 16, 2012 – Hostess Brands Inc. today announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products.

The Board of Directors authorized the wind down of Hostess Brands to preserve and maximize the value of the estate after one of the Company’s largest unions, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), initiated a nationwide strike that crippled the Company’s ability to produce and deliver products at multiple facilities.

http://hostessbrands.com/Closed.aspx
Is this what they call biting off one's own twinkie to spite your face?

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Old 11-17-2012, 03:12 PM   #2 (permalink)
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Michael Psycle is reading this now saying WTF is this?
The only ones who are the winners here are the venture capitalists who bought the brand after the 2004 bankruptcy and loaded up the company with debt, and their own pockets with the fees for their restructuring of the company. Everyone else lost.
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Old 11-17-2012, 03:24 PM   #3 (permalink)
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Originally Posted by Michael Psycle View Post
The only ones who are the winners here are the venture capitalists who bought the brand after the 2004 bankruptcy and loaded up the company with debt, and their own pockets with the fees for their restructuring of the company. Everyone else lost.
So is it Bush's fault (2004) or Romney's (2012)? I'm confused
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Old 11-17-2012, 03:24 PM   #4 (permalink)
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Originally Posted by Michael Psycle View Post
The only ones who are the winners here are the venture capitalists who bought the brand after the 2004 bankruptcy and loaded up the company with debt, and their own pockets with the fees for their restructuring of the company. Everyone else lost.
Got proof of this assertion?
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Old 11-17-2012, 03:24 PM   #5 (permalink)
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And right on cue, blowhard Trumka says the problem is NOT his greedy union :

“What’s happening with Hostess Brands is a microcosm of what’s wrong with America, as Bain-style Wall Street vultures make themselves rich by making America poor,” Trumka said in a public statement. “Crony capitalism and consistently poor management drove Hostess into the ground, but its workers are paying the price.”

I thought Trumka's job was to represent the workers? So how does telling them that they no longer have a place to work represent them?

I wonder how much love is in the room now that the bakers also destroyed the Teamster's jobs?
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Old 11-17-2012, 03:34 PM   #6 (permalink)
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Old 11-17-2012, 03:40 PM   #7 (permalink)
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This is what someone posted on the web.I'm inclined to believe what they posted.Who knows?

---------------------------------------------------------------------------------------------------------
It is always the working classes fault:

Problems began in the 1990’s after the company went on an acquisition spree that more than doubled the company’s production plants and employee count.

In the late 1990’s, the company initiated a company-wide restructuring as we witnessed operating income decline, and total debt increase.

In the early 2000’s the company began to aggressively repurchase shares, puzzling investors. According to one report “rather than benefiting from this action the company is paying for it today via increased interest expense (on the debt), and balance sheet degradation.” (Nov. 6, 2003)

Those problems led the company to file for bankruptcy protection in 2004. During this bankruptcy, BCTGM union members agreed to significant concessions. According to one report, Hostess saved $110 million from the concessions of its unionized workforce. The company also closed 21 plants through the 2000’s and saw its workforce go from 35,000 employees to 18,000.

When Hostess reemerged from bankruptcy in 2009 under the new ownership of a private equity company and two hedge funds, it was still saddled with an extremely high level of debt. The company promised to invest the savings from the union concessions into technology and capital investment, but it did not do so. Because the company ignored improving its technology, both in production and in distribution, other baking companies became much more efficient than Hostess.

Hostess again approached its unionized workers to accept another round of concessions, this time much, much worse than during the first bankruptcy – benefit cuts totaling between 27-32%. And yet, while simultaneously asking its workers to take a sizable pay-cut and say goodbye to their pensions they earned, company
executives gave themselves lavish raises. The CEO was to see his pay increase 300% while at least nine other top executives were to see their pay increase
between 35%-80%.

After the Company entered bankruptcy for the second time in January 2012, the BCTGM had an independent financial consultant look at the company’s viability and it was ascertained that they could not survive unless they made major changes to their business structure.

The only change the company wanted to make in bankruptcy was for its unionized employees to agree to major concessions. They had no viable business plan.



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Last edited by autoworker; 11-17-2012 at 03:44 PM.
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Old 11-17-2012, 03:45 PM   #8 (permalink)
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Quote:
Originally Posted by autoworker View Post
This is what someone posted on the web.I'm inclined to believe what they posted.Who knows?

---------------------------------------------------------------------------------------------------------
It is always the working classes fault:

Problems began in the 1990’s after the company went on an acquisition spree that more than doubled the company’s production plants and employee count.

In the late 1990’s, the company initiated a company-wide restructuring as we witnessed operating income decline, and total debt increase.

In the early 2000’s the company began to aggressively repurchase shares, puzzling investors. According to one report “rather than benefiting from this action the company is paying for it today via increased interest expense (on the debt), and balance sheet degradation.” (Nov. 6, 2003)

Those problems led the company to file for bankruptcy protection in 2004. During this bankruptcy, BCTGM union members agreed to significant concessions. According to one report, Hostess saved $110 million from the concessions of its unionized workforce. The company also closed 21 plants through the 2000’s and saw its workforce go from 35,000 employees to 18,000.

When Hostess reemerged from bankruptcy in 2009 under the new ownership of a private equity company and two hedge funds, it was still saddled with an extremely high level of debt. The company promised to invest the savings from the union concessions into technology and capital investment, but it did not do so. Because the company ignored improving its technology, both in production and in distribution, other baking companies became much more efficient than Hostess.

Hostess again approached its unionized workers to accept another round of concessions, this time much, much worse than during the first bankruptcy – benefit cuts totaling between 27-32%. And yet, while simultaneously asking its workers to take a sizable pay-cut and say goodbye to their pensions they earned, company
executives gave themselves lavish raises. The CEO was to see his pay increase 300% while at least nine other top executives were to see their pay increase
between 35%-80%.

After the Company entered bankruptcy for the second time in January 2012, the BCTGM had an independent financial consultant look at the company’s viability and it was ascertained that they could not survive unless they made major changes to their business structure.

The only change the company wanted to make in bankruptcy was for its unionized employees to agree to major concessions. They had no viable business plan.

http://www.v-twinforum.com/forums/im...s/confused.gif
The Teamsters reportedly looked at Hostess' finances and agreed that a strike would kill the company. Other bakery companies are reporting excess production capacity and down sales in light of lower consumer demand.
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Old 11-17-2012, 04:10 PM   #9 (permalink)
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Originally Posted by DJW View Post
Is this what they call biting off one's own twinkie to spite your face?
I know I'd never want to by off my twinkie!!
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Old 11-17-2012, 04:12 PM   #10 (permalink)
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Quote:
Originally Posted by autoworker View Post
This is what someone posted on the web.I'm inclined to believe what they posted.Who knows?

---------------------------------------------------------------------------------------------------------
It is always the working classes fault:

Problems began in the 1990’s after the company went on an acquisition spree that more than doubled the company’s production plants and employee count.

In the late 1990’s, the company initiated a company-wide restructuring as we witnessed operating income decline, and total debt increase.

In the early 2000’s the company began to aggressively repurchase shares, puzzling investors. According to one report “rather than benefiting from this action the company is paying for it today via increased interest expense (on the debt), and balance sheet degradation.” (Nov. 6, 2003)

Those problems led the company to file for bankruptcy protection in 2004. During this bankruptcy, BCTGM union members agreed to significant concessions. According to one report, Hostess saved $110 million from the concessions of its unionized workforce. The company also closed 21 plants through the 2000’s and saw its workforce go from 35,000 employees to 18,000.

When Hostess reemerged from bankruptcy in 2009 under the new ownership of a private equity company and two hedge funds, it was still saddled with an extremely high level of debt. The company promised to invest the savings from the union concessions into technology and capital investment, but it did not do so. Because the company ignored improving its technology, both in production and in distribution, other baking companies became much more efficient than Hostess.

Hostess again approached its unionized workers to accept another round of concessions, this time much, much worse than during the first bankruptcy – benefit cuts totaling between 27-32%. And yet, while simultaneously asking its workers to take a sizable pay-cut and say goodbye to their pensions they earned, company
executives gave themselves lavish raises. The CEO was to see his pay increase 300% while at least nine other top executives were to see their pay increase
between 35%-80%.

After the Company entered bankruptcy for the second time in January 2012, the BCTGM had an independent financial consultant look at the company’s viability and it was ascertained that they could not survive unless they made major changes to their business structure.

The only change the company wanted to make in bankruptcy was for its unionized employees to agree to major concessions. They had no viable business plan.



If this is in fact true, the company was doomed and more concessions may have been useless. I'm okay with management being paid well so long as the do their job well, a standard the rest of us are held to.
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Old 11-17-2012, 04:43 PM   #11 (permalink)
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DJW is reading this now saying WTF is this? DJW is reading this now saying WTF is this?
Quote:
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The Teamsters reportedly looked at Hostess' finances and agreed that a strike would kill the company. Other bakery companies are reporting excess production capacity and down sales in light of lower consumer demand.
Correct. A capital investment firm makes it's money by investing in weak companies and making them profitable, as was the case in 2004. It gains nothing by going into bankruptcy.

Reality is that the company was not profitable, and the workers preferred unemployment over pay-cuts.

Quote:
...Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brands’ debt.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

In addition to dozens of baking and distribution facilities around the country, Hostess Brands will sell its popular brands, including Hostess®, Drakes® and Dolly Madison®, which make iconic cake products such as Twinkies®, CupCakes, Ding Dongs®, Ho Ho’s®, Sno Balls® and Donettes®. Bread brands to be sold include Wonder®, Nature’s Pride ®, Merita®, Home Pride®, Butternut®, and Beefsteak®, among others.
The same thing happened here at Magna. The unions refused concessions and now the massive plant remains empty, the employees long since moved on to something and somewhere else.

The bakers union only represented about 5,000 of the employees, but sent the other 13,500 employees off to an uncertain future in a broken Obameconomy. I wish them well. I am sure there a thousands of jobs for highly skilled factory bakers in America to choose from.

Meanwhile the parts and pieces of the Hostess companies will be sold off to the highest bidder. You can expect that your next twinkie will likely be made in Mexico or Taiwan.
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Last edited by DJW; 11-17-2012 at 04:49 PM.
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Old 11-17-2012, 04:51 PM   #12 (permalink)
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is there a story of a union saving a company?
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Old 11-17-2012, 04:52 PM   #13 (permalink)
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DJW is reading this now saying WTF is this? DJW is reading this now saying WTF is this?
PS.

I am about tired of my efforts as well.(Not the fault of my employees) But I'm tired of working 2-shifts, missing holidays, birthdays, anniversaries, living on the road. For what? To help support those who refuse to support themselves?

This "atlas" is about at the shrug level too. Let them eat twinkies.
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Old 11-17-2012, 04:58 PM   #14 (permalink)
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DJW is reading this now saying WTF is this? DJW is reading this now saying WTF is this?
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is there a story of a union saving a company?
I know that a Management-Union deal saved the Steel industry in our area back in the 80s when we were on the verge of losing the steel industry in America entirely. It continues to pound out steel to this day.

http://www.crucible.com/history.aspx
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Old 11-17-2012, 06:06 PM   #15 (permalink)
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Lefty is reading this now saying WTF is this?
No management union deal could save Hostess. Steel is still a viable product. The demand for the likes of twinkies, snoballs, and wonder bread has diminished considerably. This reality has no effect on ideological rants however.


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