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Unions Force Hostess to Go Out of Business Over 8% Pay Cut


Hostess Brands — the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread — announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.

The closing will result in Hostess’ nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide. The bakers’ union represents around 5,000.

Hostess will move to sell its assets to the highest bidder. That could mean new life for some of its most popular products, which could be scooped up at auction and attached to products from other companies.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said CEO Gregory Rayburn in a statement.




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Posted in Business, Labor Unions
61 comments on “Unions Force Hostess to Go Out of Business Over 8% Pay Cut
  1. J10 says:

    Great more of Obama’s and his union friends crap to wreck the USA. They can all go on food stamps. The more the merrier for the Democrats and their getting more votes.

  2. kbcab says:

    Hey Obama , more jobs lost , that you can blame on someone else , but actually you really don’t give a s**t , do you?

    • Ronnie says:

      Well the trash of the nation got what they wanted, who will feed you now once all the rest of the jobs have dried up. Maybe your President (NOT MINE) will support you out of his own pocket, HA HA HA!

    • mathis1689 says:

      Why should he? He’s living higher on the hog than the Queen of England so what does he care about anybody who actually works for a living.

  3. Oldman says:

    As a Union Member from a closed shop,in other words you can’t have the job unless you belong to the Union. This is what happens when the Union officials are out of touch with reality of those they represent. It sad when the “union ” does more harm to it’s brothers and sisters. I’m sure the the President of BC&T will be very proud of himself. As usual the little people get it pack up their back sides.

  4. kbcab says:

    when over half the country is out of work and no taxes being stolen from them , where will the money come from to support welfare and food stamps , just saying…

    • Penguin9penguin says:

      This a case of trickle down poverty. We will all come down a peg or two…..but as less and less money coming into the coffers…all of the freeloaders will be living like the earthguake victims in Haiti. Or the slums of India. And they will only have themselves to thank. Grow up. Get. A job and. Become a productive member of society

  5. +The Union that was to help and assist the workers have caused a business to go away.I think it’s good, those that say we are for the workers, have just shown the truth, we want is the real issue, and Hostess is the winner, the union lost as it’s workers are out of a job. Funny isn’t it.

  6. rick lab says:

    people that already have great job benifits & good pay should be happy that they have a job & be willing to make the sacrifice to help save the company they work for. the unions need to butt out or start giving their members better advice

  7. Sandi says:

    Is there anything more stupid than to bite the hand that feeds you? Guess they would rather lose 100% than 8%. Unions are past doing anything goosd for anyone except the union bosses.

    • Gale says:

      The only thing the unions are good for are to protect their members from companies that won’t pay a fair wage. That was the intent of the unions in the first place. I think they(the unions) have oversteped their jobs.

      • Tommy Ge says:

        Gale, you “think” unions have “overstepped their jobs.” Unions have far outlived their usefulness. Unions are lead by corrupt thugs who are in it for themselves. While the useful idiots stand and picket and lose pay, the union fatcats are dining on their fine wine and prime rib, living in the nice expensive homes in gated communities. It’s all about power and the Democrat party handing them taxpayers money. It is time to get rid of all unions in this country. Their is ZERO use or purpose for them.

    • AndrewJerome says:

      If the unions were so great they would make up that 8 % and let the workers keep their jobs. Now everyone loses. Just freakin’ great.

  8. disgusted demacrat says:

    Now the union bakers can apply to the candle stick makers union for a job.LOL!!

  9. ELBY says:

    It’s all part of the master plan!

  10. kbcab says:

    Man , The Unions are really taking care of their people aren’t they , they just lost 18 k Jobs for some of their members because of their stupidity…

  11. Sandy Kelley says:

    The Dumb Pucks can now go on welfare. Obama’s plan all along.

  12. flyovercindy says:

    Hopefully, Twinkies will live on under new management, and become bigger and better! Just like GM might have…

  13. Sandy Kelley says:

    The company shouldn’t go out of business….there are plenty of people who would work for that money. Union members are fools and idiots. Glad they are out of a job.

    • AndrewJerome says:

      You’re right, Sandy, they shouldn’t have to go out of business. Another union failure to protect their members.Anyone remember the “Air Traffic Controller” fiasco? Reagan fired them all and hired new personnel. I wonder if Hostess thought of that or just thought “screw them all, unions included”?

      • flyovercindy says:

        I believe that Hostess has been in bankruptcy status for much longer than just this particular union contract negotiation, so this was probably just the straw that broke Hostess’ back in their attempts to remain profitable. What I am praying for is for some other company or investors to snatch up the Hostess names and recipes, and make an enormous success of the “new” Hostess – it would show Obama and his ilk how it’s done. I still think that GM could be a phoenix rising from the ashes if it REALLY had gone through bankruptcy, changed ownership, management and vision – instead of being ransacked, propped up and controlled by a government that hates and discourages “profit”.

  14. Dr. D. says:

    Unions are to a large extent based on entitlement mentality. They believe they are entitled to pay and benefits regardless of the state of the company’s health, or that of the market. The begrudgingly accept measures that are insufficient for the company to sustain operations that will lead to survival, or much less growth. Unions are also a political tool Democrats use to divide the country. This is not to say that some unions are not beneficial to both company and employee, but this seems to be an exception.

  15. Dick Grace says:

    Absolutely brilliant strategy on the part of the unions!