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
LM
No comments:
Post a Comment