To the Hostess Company:You meant business with the bakers' union: you said your recent contract offer was your last offer. They said No and continued striking. Now you're liquidating your assets, filing for bankruptcy, and 18,000 employees will take their last walk. 2 of your plants are 65 miles from me in Indy. I'm sorry to see you go. I'm sorry that 33 bakeries, 565 distribution centers, and 570 outlet stores will be no more.I haven't had Wonder Bread, a Twinkie, a HoHo, a Ding Dong, or one of your cupcakes in years. I'm diabetic, and I have to walk past your stuff now. Besides job losses, I think I regret most losing an American icon. You never claimed you were "healthy" for us. As a kid, I didn't care if your bread "built strong bodies 12 ways" or not, but it was magnifique with a gob of PB & J on it. Then you got in trouble when you said that the calcium you later added made a 13th benefit by improving kids' brain function and memory. The FTC said, "Hey, got any scientific proof for that?" Ouch. In 2002, you had to go back to the time-honored 12 ways. I ate gobs of Hostess as a kid. Now, it's like a tiny piece of childhood going to its grave. RIP, sadly.
Besides job losses, I think I regret most losing an American icon.And one less thing on a stick at the WI State Fair....MOI
I ate gobs of Hostess as a kid. Now, it's like a tiny piece of childhood going to its grave. RIP, sadly.Don't worry. Buy some Twinkies. They'll keep.ForeverCheersQazulight
In Germany, I understand that union reps are on the boards of the companies whose workers they represent. That gives them a "heads up" on how the business is going.. Apparently these union workers had no way to know that the company wasn't bluffing in negotiation. I heard on the news that they have been doing badly for some time as buyers went to more healthy snacks. I don't understand why they didn't move their product line in that direction. my 2¢Hetep
Notice the gourmet cupcakes in the urban trendy areas and resort towns: Hostess did not change with the times.And the economic strain is worse on folks who are looking for cheap baked goods.Seems to this non-businesswoman that this is an example of the creative destruction for free enterprise capitalism
Apparently these union workers had no way to know that the company wasn't bluffing in negotiation.I heard from a collegue that the AFL-CIO had approved the offer from Hostess, but the local reps refused it. I think they just got greedy and didn't want to know that the company wasn't bluffing.BTW: all may not be lost. As I called it last week on FB, it looks like Bimbo may make another offer to buy the company. They were turned down with a previous offer of $580M, now Hostess is only worth about $1235M, so it could be a bargain for them. They bought out Mrs. Bairds a few years ago and the quality and taste of the products has remained the same.LWW
I heard from a collegue that the AFL-CIO had approved the offer from Hostess, but the local reps refused it. I think they just got greedy and didn't want to know that the company wasn't bluffing.AFL-CIO was not involved in this; it was the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that called the strike.Ishtar
AFL-CIO was not involved in this; it was the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that called the strike.The BCTGM is affiliated with the AFL-CIO. AFL-CIO is even on the bottom of their seal/logo.MOI
ah, you're right, but that doesn't mean the parent organization had the negotiating power.Ishtar
but that doesn't mean the parent organization had the negotiating power.They didn't, but if the giant union organization says that a strike is a bad idea, that usually means that it really is a bad idea.I suspect the parent organization knew how bad things were and were trying to keep the company alive.Nancy
So, let's say they didn't strike.The company was already limping, having declared bankruptcy and restructured not all that long ago and still didn't do much to recapture the lost market share.How much longer would it have lasted?Ishtar
How much longer would it have lasted?Very likely not long, but probably past Christmas. And they might have been able to negotiate a merger that might have kept some jobs going.Several decades ago the auto unions struck a deal with the major auto companies that essentially said that the unions would never be forced to accept givebacks, and if the auto companies did ask for a giveback they would open the books to the union and allow the union a seat on the board of directors.So when Lee Iacocca became head of Chrysler while the company was desperately trying to stay afloat, he realized that givebacks were the only way to keep the company operating. So they had to open the books and put a union guy on the board.The union thus felt that they were being dealt with fairly. I don't know if opening the books to the union is something companies do, but in some cases it might help.As I said elsewhere, plenty of blame on both sides.Nancy
it looks like Bimbo may make another offer to buy the company.Yay me! I guessed this and told my husband it today, without hearing any media about it whatsoever. Would certainly prefer a somewhat local company (Bimbo es de Mexico, si?)to some other place.joycets
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