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Hostess Mediation Fails, Liquidation To Proceed; Furious Laid Off Workers Now Turn On Labor Union
Zero Hedge ^ | 11/20/12 | Tyler Durden

Posted on 11/20/2012 7:49:57 PM PST by Nachum

Last week, when discussing the next steps for the company, and specifically the hope that mediation may resolve the epic animosity between management and workers, we stated that "What makes a mediation improbable is that the antagonism between the feuding sides has certainly hit a level of no return: "Several unions also objected to the company's plans, saying they made "a mockery" of laws protecting collective bargaining agreements in bankruptcy. The Teamsters, which represents 7,900 Hostess workers, said the company's plan would improperly cut the ability of remaining workers to use sick days and vacation." Sure enough, moments ago we learned that mediation has now failed and the liquidation may proceed. And since in America nobody understands that proper sequence of events involved in a bankruptcy liquidation, where the valuable parts always end up being acquired by someone, in this case the Twinkie brand and recipe, let the pointless Ebay bidding wars over twinkies continue. As for what really happens next, if indeed Bimbo is prohibited from acquiring the assets in the Stalking Horse auction due to anti-trust limitations, then the buyer will almost certainly be a "financial", i.e., another PE firm, whose coming means the end of any hopes and dreams of preserving union status at fresh start Hostess, or whatever the new firm will be named.

From the WSJ:

Hostess Brands Inc. said Tuesday night it would proceed with liquidation plans after mediation fails.

Earlier Tuesday, the head

(Excerpt) Read more at zerohedge.com ...


TOPICS: Front Page News; News/Current Events
KEYWORDS: hostess; labor; mediation; schadenfreude; union
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Hope the union brothers treat their hack leader to a little brotherly justice
1 posted on 11/20/2012 7:50:01 PM PST by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, Ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 11/20/2012 7:51:45 PM PST by Nachum (The List is off the Google blacklist- www.nachumlist.com)
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To: Nachum

3 posted on 11/20/2012 7:53:02 PM PST by null and void (America - Abducted by Aliens...)
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To: Nachum

The fruits of greed and corruption. This is how commrades of the communist unions operate. Hate, lies and destruction.


4 posted on 11/20/2012 7:54:34 PM PST by Armaggedon
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To: Nachum

18,500 American jobs headed to MEHico and the union declares a great victory! Way to go knuckledraggers!!! Party hard!


5 posted on 11/20/2012 7:54:57 PM PST by FlingWingFlyer (Amnesty - Obama's bailout of Mexico. Barry sticks it to America again!)
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To: Nachum

Red on red.


6 posted on 11/20/2012 7:56:34 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: Nachum

BTTT.


7 posted on 11/20/2012 7:57:06 PM PST by OddLane
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To: Nachum
I hope they sell it to Mexico and maybe some of the “illegals” will move home and do the jobs American union workers wont do...
8 posted on 11/20/2012 7:58:30 PM PST by M-cubed
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To: Nachum

any investor would be a fool to buy Hostess - the unions make this an impossible buy.


9 posted on 11/20/2012 7:59:58 PM PST by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-hereQaeda" and its allies.)
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To: Nachum

Perhaps a little blanket meeting in the parking lot is in order.


10 posted on 11/20/2012 8:01:02 PM PST by brewcrew
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To: Nachum
Doug Mansky, a Hostess driver in Detroit and a member of the International Brotherhood of Teamsters, was in the process of moving to a cheaper condominium on Tuesday, after his union had agreed to an 8% pay cut that he said would shave $200 a week from his income.

This driver made $130K a year. Hostess needed it cut to $120K. This guy makes the UAW look like a bunch of paupers.

11 posted on 11/20/2012 8:01:42 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: elpadre

Makes more sense to buy the patents, the distriburting rights and teh euipment.

Pack it all up and ship it to a right to work state. Start again there.


12 posted on 11/20/2012 8:02:16 PM PST by BenLurkin (This is not a statement of fact. ItClimate change! is either opinion or satire; or both)
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To: elpadre

Makes more sense to buy the patents, the distriburting rights and teh euipment.

Pack it all up and ship it to a right to work state. Start again there.


13 posted on 11/20/2012 8:02:16 PM PST by BenLurkin (This is not a statement of fact. ItClimate change! is either opinion or satire; or both)
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To: Nachum

An 8% cut would shave $200 a week off the employee’s income? Let’s see...that means 1% would be $25.... So times one hundred....carry the seven.....why......that’s like $2500 a week!.....$10,000 a month.....$120,000 a year!....what if that’s net?......Ho-Ho indeed!


14 posted on 11/20/2012 8:03:18 PM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: elpadre

Someone may buy the name, recipes, and trademarks, but I seriously doubt anyone is buying the company as currently structured.


15 posted on 11/20/2012 8:03:22 PM PST by CatOwner
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To: elpadre

Bet that Thanksgiving dinner will be a sad occasion for 18,000 families.


16 posted on 11/20/2012 8:03:38 PM PST by Ciexyz
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To: elpadre
any investor would be a fool to buy Hostess - the unions make this an impossible buy.

The beauty of liquidations is that union contracts are torn up, and there's no obligation to hire a single union worker or even buy the existing plants. Bimbo could make everything in Mexico.

17 posted on 11/20/2012 8:03:55 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: elpadre

If they buy the assets and not the corporation they won’t be stuck with the unions.


18 posted on 11/20/2012 8:05:00 PM PST by Aria ( 2008 & 2012 weren't elections - both were a coup d'etat.)
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To: elpadre

Not saying you’re wrong but what legal lever can unions use to do that? If there is a law that says you may not close a business then we are already have a fascist dictatorship.

I suppose there are pensions. I wonder if they are fully funded?


19 posted on 11/20/2012 8:06:03 PM PST by DManA ( you)
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To: FlingWingFlyer

“18,500 American jobs headed to MEHico and the union declares a great victory! Way to go knuckledraggers!!! Party hard!”

Maybe not! Did you read the bit about the anti-trust laws that may well scuttle the Bimbo bid? A perfect world here would be for a non-union bakery to buy Hostess’ assets and leave these morons sitting on their front porches!


20 posted on 11/20/2012 8:06:56 PM PST by vette6387
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To: BenLurkin

” - - - Pack it all up and ship it to - - - “ CHINA, naturally.


21 posted on 11/20/2012 8:09:10 PM PST by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
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To: Nachum


22 posted on 11/20/2012 8:09:44 PM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Nachum

Cool! The new company will be free of the evil union! Maybe most can keep their jobs?


23 posted on 11/20/2012 8:09:44 PM PST by fabian (" And a new day will dawn for those who stand long, and the forests will echo in laughter")
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To: Nachum

Way to Go, you Idjits!!!


24 posted on 11/20/2012 8:11:06 PM PST by meadsjn
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To: Nachum

Am I the only one who finds glee in crashing and burning of these union-run companies? I hope all union run companies go bankrupt so that these “workers” get a taste of their own medicine when they have to COMPETE and IMPROVE to keep their deadend jobs.


25 posted on 11/20/2012 8:13:58 PM PST by sagar
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To: blueunicorn6

“An 8% cut would shave $200 a week off the employee’s income? Let’s see...that means 1% would be $25.... So times one hundred....carry the seven.....why......that’s like $2500 a week!.....$10,000 a month.....$120,000 a year!....what if that’s net?......Ho-Ho indeed!”

And then there are the “work rules,” which probably require that this guy just drive the truck, and have a ride along “helper” to move the product from the truck to the store while good old Doug sits on his ass in the truck playing with his iPad (or maybe himself)! He’s 49. I hope the rest of his life is spent in an unsuccessful search for another job! Payback should be a bitch! It’s going to be “interesting” when all the RATs “feelings” about things hit hard up against the “realities” of economics.


26 posted on 11/20/2012 8:15:10 PM PST by vette6387
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To: FlingWingFlyer

Do you really think that all Bimbo bread is made in Mexico? I happen to know there are bakeries all over the United States and even in Europe. How could Bimbo make everything in Mexico and get it all over the United States by 3:00 AM every morning?


27 posted on 11/20/2012 8:15:29 PM PST by MondoQueen
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To: blueunicorn6

More than I made as a Corporate Vice President / Logistics Manager responsible for a $22 Million Dollar Yearly Budget overseeing a four State territory. We had 24/7 operations with my butt on the line if any Vendor ever screwed up.

Boy oh boy, did I make the wrong choice of careers, but with my sweet tooth I would be a three hundred pound Diabetic by now if I was a Hostess driver.


28 posted on 11/20/2012 8:16:13 PM PST by Kickass Conservative (Life is just a bowl of Low Information Voters.)
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To: MondoQueen
How could Bimbo make everything in Mexico and get it all over the United States by 3:00 AM every morning?


29 posted on 11/20/2012 8:16:48 PM PST by dfwgator
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To: Nachum

OUTSTANDING post, Nachum! Thanks. Thanks to Tyler Durden and the great posters at zerohedge.

HOORAY Hostess! Prepare. Persevere. Liquidate (when necessary).


30 posted on 11/20/2012 8:24:37 PM PST by PGalt
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To: MondoQueen

Don’t know. I never ate any Bimbo bread. Is it fresh?


31 posted on 11/20/2012 8:27:53 PM PST by FlingWingFlyer (Amnesty - Obama's bailout of Mexico. Barry sticks it to America again!)
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To: MondoQueen

I used to walk past the Bimbo Bakery warehouse in El Paso nearly every day on my way to Juarez for lunch. It was just two blocks from the border on the US side. Nice friendly people inside where you could buy products for very low prices. Often there were little old Mexican ladies there buying many loaves of bread and sometimes I would carry their bags and walk them back over the bridge.


32 posted on 11/20/2012 8:27:53 PM PST by Bobalu (It is not obama we are fighting, it is the media.)
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To: sagar
I think the fact that the Obama loving Union Thugs are crashing and burning while they run the show is adding to your glee.

I wish no ill on anyone, but when the same people wish me and my Family nothing but misery because we stand up for our Constitutional Republic, my sympathy is waning.

In another time we would all sympathize watching a Company failing, especially when that same Company touched our lives from childhood to adulthood. I was apoplectic when the Helms Truck stopped coming through our Neighborhood, but I was a kid when that happened.

Payback is a bitch. As Rush said, he hoped Obama failed. Well, it looks like Obama is fulfilling Rush's prophecy.

33 posted on 11/20/2012 8:27:53 PM PST by Kickass Conservative (Life is just a bowl of Low Information Voters.)
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To: sagar
Am I the only one who finds glee in crashing and burning of these union-run companies? I hope all union run companies go bankrupt so that these “workers” get a taste of their own medicine when they have to COMPETE and IMPROVE to keep their deadend jobs.

Yes, I too am enjoying it. But I am less interested in whatever these private sector union thugs do one way or another. I don't care if the company closes down or the courts make them stay open.

THE UNIONS I WANT SHUT DOWN BY ANY MEANS NECESSARY ARE THE PUBLIC SECTOR UNIONS - THEY SIT ACROSS FROM THE BARGAINING TABLE AND WHO IS ON THE OTHER SIDE? ADMINISTRATORS WHO ALSO ARE PAID WITH TAXES. THE UNIONS MAKE THEIR OUTRAGEOUS DEMANDS AND WHAT IS THE TAX PAYER TO DO? NOT ONE SINGLE PERSON AT THE NEGOTIATIONS IS LOOKING OUT FOR THE TAXPAYER. The negotiations in a private sector scenario pit the union against the stockholders. The Public sector negotiations do not even have the folk making the payments present at the negotiation. FOR ONCE I AM IN AGREEMENT WITH FRANKLIN DELANO ROOSEVELT - PUBLIC SECTORS SHOULE BE ILLEGAL.
34 posted on 11/20/2012 8:30:00 PM PST by Cheerio (Barry Hussein Soetoro-0bama=The Complete Destruction of American Capitalism)
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To: Nachum

Now the Union workers don’t have to worry about sick leave and vacation.

Stupid, Just plain stupid.Thousands of people out of work because of hard headed BS.


35 posted on 11/20/2012 8:31:37 PM PST by Venturer
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To: Kickass Conservative

Well, they bought Mrs. Bairds. It is in Texas.

Probably in most other states.


36 posted on 11/20/2012 8:32:06 PM PST by berdie
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To: Nachum

The greedy union punks are reapiing what they have sown. May they harvest in the fullest measure.


37 posted on 11/20/2012 8:33:17 PM PST by Lion Den Dan
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To: Nachum

38 posted on 11/20/2012 8:36:51 PM PST by KentTrappedInLiberalSeattle ("If you're not fiscally AND socially conservative, you're not conservative!" - Jim Robinson, 9-1-10)
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To: Cheerio

HOSTESS SHRUGGED


39 posted on 11/20/2012 8:36:51 PM PST by windsorknot
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To: FlingWingFlyer

I’m not just talking about the Bimbo brand. I’ve never tried it either. But that is not all they sell. They sell Brownberry Bread and Arnold’s Thins and Thomas English muffins, among other brands. And I know they have bakeries in the Chicago area.


40 posted on 11/20/2012 8:38:00 PM PST by MondoQueen
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To: FlingWingFlyer

Bimbo is the largest bread manufacturer in the us and you ate bimbo bread at some point in your life


41 posted on 11/20/2012 8:41:04 PM PST by kvanbrunt2
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To: elpadre
any investor would be a fool to buy Hostess - the unions make this an impossible buy>

Once it goes into bankruptcy and liquidation the union contract is null and void as it will be a new entity that will be Hostess thus a very good buy. To buy the present Hostess and the union contract that goes with it, would be an act of financial insanity.

42 posted on 11/20/2012 8:43:29 PM PST by cpdiii (Deckhand, Roughneck, Mud Man, Geologist, Pilot, Pharmacist. THE CONSTITUTION IS WORTH DYING FOR!)
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To: Nachum

Ok you legal eagles out there. Is there any avenue for the workers who lost their jobs to sue the union? Blame their striking for the cause of the company’s demise and seek to recover lost pensions, vacation, etc?


43 posted on 11/20/2012 8:45:16 PM PST by taxcontrol
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To: BenLurkin
Makes more sense to buy the patents, the distributing rights and the equipment. Pack it all up and ship it to a right to work state. Start again there.

Come on down to Texas!

44 posted on 11/20/2012 8:47:52 PM PST by cpdiii (Deckhand, Roughneck, Mud Man, Geologist, Pilot, Pharmacist. THE CONSTITUTION IS WORTH DYING FOR!)
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To: Nachum
"Brotherhood of Teamsters, was in the process of moving to a cheaper condominium on Tuesday, after his union had agreed to an 8% pay cut that he said would shave $200 a week from his income."

If my Math is correct he was getting paid about $11000 a month or $132000 a year to drive a delivery truck? Plus full a fully paid medical and pension plan? No wonder they went under.

45 posted on 11/20/2012 8:49:29 PM PST by TruthWillWin (The problem with socialism is that you eventually run out of other peoples money.)
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To: elpadre

You really don’t have to buy much. If your already a bakery like Bimbo all you need is the recipe. That could be e-mailed after payment.


46 posted on 11/20/2012 8:51:13 PM PST by cableguymn (The founding fathers would be shooting by now..)
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To: Kickass Conservative

“More than I made as a Corporate Vice President / Logistics Manager...”

...and more than any troop under the rank of O-6 makes while deployed in Afghanistan (even with all the allowances, combat pay and tax-exempt pay provisions).

...at least the driver isn’t getting his a$$ blown up by IEDs...poor thing.


47 posted on 11/20/2012 8:53:45 PM PST by castlebrew (Gun Control means hitting where you're aiming!))
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To: vette6387

Bimbo wouldn’t necessarly move Hostess to Mexico, they have a lot of bakeries in the US which are non union!

A lot of the bread we buy is Bimbo, you have to look at the fine print on the wrapper to find it.

Bimbo is the largest bakery corporation in the World.


48 posted on 11/20/2012 8:55:01 PM PST by dalereed
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To: dalereed
Bimbo is the largest bakery corporation in the World.

Is Sandra Fluke their spokesperson?

49 posted on 11/20/2012 8:55:53 PM PST by dfwgator
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To: Nachum

Heh, “failure to represent”. Hate to see what the union contracts actually state.


50 posted on 11/20/2012 8:55:56 PM PST by Olog-hai
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