Mediation Between Hostess and Unions Fail

The Hostess company failed to reach agreement with its second-biggest union today. The company will continue with a hearing tomorrow at bankruptcy court.
The AP reported:

Hostess Brands Inc. lived to die another day.

The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with its second-biggest union. As a result, Hostess plans to continue with a hearing on Wednesday in which a bankruptcy court judge in White Plains, N.Y., will decide if the company can shutter its operations.

The renewed talks between Hostess and The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union came after the company declared last week that it would move to wind down its business and start selling off its assets in bankruptcy court. The company cited a crippling strike that was started on Nov. 9 by the union, which represents 30 percent of Hostess workers.

After making its case to liquidate on Monday, the bankruptcy court judge noted that the two sides hadn’t yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences. Both sides agreed to hold mediation proceedings on Tuesday.

In a statement late Tuesday, Hostess said it would not comment on the breakdown in talks other than to say that mediation “was unsuccessful.” There was no immediate comment from the bakers union.

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  • Patty

    Thread before this one should be here: Pit bull needs to takeover Hostess, after all Twinkie is running the nation.

    Hostess Mediation Fails, Liquidation To Proceed; Furious Laid Off Workers Now Turn On Labor Union


    This would be a truly fantastic drama, if people’s lives were not at stake. And no, not one former Hostess worker will retain their job at the new company: that much is certain.

    As we said, if only people had a basic understanding of how bankruptcy truly worked, and what the real state of the economy was, then Hostess’ workers may have had a chance and some amicable comrpomise would have been possible.

    Then again, if people in America actually understood economics and simple finance, then the “Ohio outcome”, and many others, would have likely been quite different.

    Now we can only hope we were not correct about the ultimate outcome too: namely that the US government will effectively hijack the bankruptcy process, and in doing so “bailout” a junk food maker, just so 18k votes can be preserved at the expense of creditors and making yet another mockery of the bankruptcy process, and property rights in the US.

    Then again, this is precisely what the Union was likely hoping for all along, because once the government starts bailing everyone out, just where does it draw the line?

  • myohmy

    It is easy sit on a bench and pick your nose as a judge and collect his salary for the rest of his f*cking life. Running a business is hard. The judge should just buy Hostess and re-hire all these union…let us see how long he last.

  • Patty

    I miss Twinkies and I never really had them much. Can think of the last time I did. But powdered donuts, yes, and here they were Butternut company’s best seller.

  • Sasja

    It’s going to be tough for these fools to find employment that pays them anywhere near what they were earning, or would have been earning had the union agreed to concessions. Some may lose their house, move to a cheaper rental, but they’ll always have Barry-Care, food stamps, and
    unemployment compensation.
    It’s a wonderful life.

  • kato

    The bakers’ union didn’t even bother to show up in court when Hostess asked the judge to approve its restructuring plan, according to the WSJ. The other unions, including the Teamsters, went along with the plan. After the court approved the plan, the bakers went on strike.

    Unskilled labor. Unskilled union. Unskilled union lawyers.

    I would not have bought another Hostess product made by these union turds. Hostess is smart to sell its assets to a new owner. One possible buyer is the holding company that owns the Friendly’s restaurant chain.

  • donh

    The DEATH of HOSTESS at this point in time is another tribulation event brought by GOD as a sign of the unfolding Apocalypse…..Scene from Zombieland…>

  • Patty

    Killing The Goose

    All of this was obviously intended to create more jobs for the unions’ members. But the needless additional costs that these make-work rules created ended up driving the company into bankruptcy, which can cost 18,500 jobs. The union is killing the goose that laid the golden egg.

    Not only are there reasons for employers to pay their workers enough to keep them from joining unions, there are reasons why workers in the private sector have increasingly voted against joining unions. They have seen unions driving jobs away to non-union competitors at home or driving them overseas, whether with costly work rules or in other ways.

    The old-time legendary labor leader John L. Lewis called so many strikes in the coal mines that many people switched to using oil instead, because they couldn’t depend on coal deliveries. A professor of labor economics at the University of Chicago called John L. Lewis “the world’s greatest oil salesman.”

    There is no question that Lewis’ United Mine Workers Union raised the pay and other benefits for coal miners. But the higher costs of producing coal not only led many consumers to switch to oil, these costs also led coal companies to substitute machinery for labor, reducing the number of miners.

  • Patty
  • Sandy

    Maybe Twinkies can now be made in China and called Chinkies.

  • Patty



    Revised bill highlights

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    ✭ Delays notification of customers whose accounts have been accessed from 3 days to “10 business days.” This notification can be postponed by up to 360 days.

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  • Patty



  • Truth Teller

    Obama zombies sure feel empowered with their god in the White House…

    Unproductive black mobs terrorizing productive white citizens…

    Unproductive union morons sucking the life out of productive companies…

    Unproductive beware…the productive have been slow to wake, but from what I hear, they are pissed!

  • Rusty in Alaska

    The Zero Hedge article near the top: Baker loses 8% ($200 he claims) salary per week. That’s $2500 per week. Are you F’ing kidding me? A baker at a factory that requires no creativity, efficiency motivation or productivity incentive whatsoever.. and the poor slob has to move because he will only make $2300 a week? Any sympathy I might have had for these workers has completely vaporized.

  • Rusty in Alaska

    I stand corrected, he was a Teamster driver, not a Baker. But my point remains valid just the same..

  • squeaky

    “Unproductive black mobs terrorizing productive white citizens…” the unproductive mobs terrorizing productive mobs. being slugs is now and has been all inclusive.

  • squeaky

    [Bakers Union President Frank Hurt released a statement yesterday after Hostess closed all of its American plants. Hurt said the union knew Hostess could die.] a bird in the hand is worth 2 in the bush.

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  • Edward Treadway

    Twinkies going the way of the bustle.