Skip to comments.Hostess Mediation Fails, Liquidation To Proceed; Furious Laid Off Workers Now Turn On Labor Union
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 ...
Bimbo is the largest bread manufacturer in the us and you ate bimbo bread at some point in your life
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.
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?
Come on down to Texas!
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.
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.
“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.
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.
Is Sandra Fluke their spokesperson?
Heh, “failure to represent”. Hate to see what the union contracts actually state.
“Is there any avenue for the workers who lost their jobs to sue the union?”
It’d probably be pretty silly to sue the union after their heath care is gone and then have to deal with two broken legs. But, that’s just my quick take.
On the for-real side, they joined the union and probably gave up most of their individual rights as part of the bargain.
“Bimbo is the largest bakery corporation in the World.
Is Sandra Fluke their spokesperson?”
Not yet, but I hear they are going to be getting into the condiment business. Ba da bump.
I hope these Ding Dongs laid in their supply of Twinkies. Maybe they can sell them on ebay.
Their owner is one of the richest men in the world.
They pretty much own everything, almost too many to list.
However, here are a few... Mrs. Bairds bread, Arnold's bread, Oroweat bread, Brownberry, Thomas English muffins, Thomas bagels, Dutch County bread, Sara Lee bread, Bimbo bread, Weight Watchers bread, Ball Park buns, and they also own Entenmanns.
They also make the private label bread for many companies, including Walmart.
“...AND WHO IS ON THE OTHER SIDE? ADMINISTRATORS WHO ALSO ARE PAID WITH TAXES.”
It’s even worse than that. At the federal level, the president, and at the state level, the governor—approve the bargaining position and final offer on behalf of the taxpayers. And who paid more than anyone to get this president and (most) governors elected? The unions. Talk about a massive conflict of interest.
The National Labor Relations Board would never let that happen and the Dept of “Justice” would support them.
It would never occur to them to blame themselves, they are democrats.
Look for the union label.
If they’re dumb enough to join the union, they deserve the punishment.
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