Tuesday, November 20, 2012
Hostess Cakes End Of An Era. Or Is It?
When I heard the news this morning that Hostess Brand Incorporated would be shutting its plants in the United States I said, Oh No! I was remembering my Aunt who worked at the Hostess plant in Sacramento. Whenever she came to San Jose, she would bring us Twinkies, Cup Cakes, Ding Dongs, Ho Ho’s, Snow Balls and Donettes. Hostess has been around for almost a century, they opened their doors in 1930 in Irving Texas. Hostess filed for bankruptcy in 2004 and their reason was that, the company was saddled with costs related to its unionized workforce. The company had been contributing $100 million a year in pension costs for workers. Hostess said the new contract offer would've slash up to 25 million dollars a year. Now in 2012, less than a decade here they go again. The reason this time is nearly a dozen executives received pay hikes of up to 80 percent last year with the company struggling. Then thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike. They rejected the company's latest contract offer. The Bakers Union represents about 30 percent of the company's workforce. When the company finely reached a contract agreement with the union, it was not enough. Hostess decided to suspend operations and filed bankruptcy on November 16, 2012. Hostess will be letting go nearly 18,500 workers, shut down 33 bakeries, 565 distribution centers nationwide and 570 outlet stores.
People are going a crazy. In San Jose where I live, I was at the grocery store the other day and I could not believe the Hostess cake shelves were nearly bare. This one man had at least 20 boxes of Twinkies and Ding Dong. On Ebay a box of Twinkies are going for 3 million dollars a box. That is insane!!! What in the heck are people doing? With the holidays upon us this money could be put to better use. Like helping people in need! It is too bad that management and the employees could not come to an agreement. I feel that it was greed on both sides, now everyone is out of a job.
NEWS FLASH! Hostess management and unions agree to mediation. Judge pushes parties toward mediation to save more than 18,500 jobs. Keep coming back for updates