November 16, 2012

Goodbuy to Twinkies - union causes Hostess Bakery to close

From FOX News:
Hostess to close, lay off 18,500 after 'crippling' union fight
A small union's stubbornness in contract talks with Hostess is being blamed for the shutdown of one of America's snack food icons, the loss of 18,500 jobs just before the holiday season and much-needed tax revenue from hundreds of plants and shops across the country.

The privately-held company had reached a deal with the Teamsters, but a smaller union representing bakery workers refused to agree to concessions, prompting the mass layoffs and closing down of hundreds of plants, bakeries and delivery routes. That prompted harsh words from both the company and from Teamsters officials.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Chief Executive Gregory Rayburn said in a statement. "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."

The company said it will continue to ship out its well-known products until inventory runs out.
The smaller union was the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union -- very big name, very small brains. Here is the Wikipedia entry for this union. Here is the home page for this union -- it keeps giving me Bandwidth Exceeded errors through. Heh. Hostess snack cakes are a favorite food of hackers and you do not want to piss off a bunch of hackers... Posted by DaveH at November 16, 2012 3:48 PM