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PostPosted: Fri Nov 16, 2012 9:31 am 
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http://www.nbcdfw.com/news/national-int ... 43161.html

I am looking forward to see how the left spins this, as Union demands and a nationwide strike causes 18,500 families to lose their jobs. I have to ask this are those families better off today? Or would they have been better off if they had they taken the lesser wages and benefits that Hostess needed in order to stay in business.
Of course on the other hand the union stood their ground and really showed the rich fat cats that they were serious. I somehow suspect that in 6 months those workers will be wishing they would have listened to the company and kept their jobs. At least now that Obama has been re-elected there is a really good chance that their unemployment checks will keep coming well beyond the normal 26 weeks that was the standard for so many decades.

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Last edited by glenfs on Fri Nov 16, 2012 4:04 pm, edited 1 time in total.

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PostPosted: Fri Nov 16, 2012 9:38 am 
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http://www.nbcdfw.com/news/national-international/NATL-Twinkies-Maker-Hostess-Going-Out-of-Business-179643161.html

I am looking forward to see how the left spins this, as Union demands and a nationwide strike causes 18,500 families to lose their jobs. I have to ask this are those families better off today? Or would they have been better off if they had they taken the lesser wages and benefits that Hostess needed in order to stay in business.
Of course on the other hand the union stood their ground and really showed the rich fat cats that they were serious. I somehow suspect that in 6 months those workers will be wishing they would have listened to the company and kept their jobs. At least now that Obama has been re-elected there is a really good chance that their unemployment checks will keep coming well beyond the normal 26 weeks that was the standard for so many decades.


Competition and consumer awareness drove Hostess into Chapter 11 in January. They are now facing a decision whether or not to go into liquidation. This is not the first time Hostess Has been through the bankruptcy cycle in the last decade. I suggest you buy up all of the Twinkies you can while they last. Add some of that nice soft Wonder bread that turns of body fat so easily. Mmmmmm .... good stuf.

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PostPosted: Fri Nov 16, 2012 9:40 am 
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I hate Wonder Bread and never cared for Twinkies, however I will miss my Suzy Q's.

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PostPosted: Fri Nov 16, 2012 9:45 am 
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I hate Wonder Bread and never cared for Twinkies, however I will miss my Suzy Q's.


Hostess depends on super market shelf space and location to move its products. Over the last decade many spermarkets have decreased or eliminated shelf space dedicated to Hostess products. Management could of revised the product line to meet changing demand, but they did not. To blame the unions for this is bad form.

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 Post subject: No more Twinkies?
PostPosted: Fri Nov 16, 2012 9:51 am 
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Quote:
Hostess Brands Inc., the bankrupt maker of Twinkies and Wonder Bread, said it had sought court permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.

Hostess said a national strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that began last week had crippled its ability to produce and deliver products at several facilities.

Hostess Chief Executive Gregory Rayburn said in an interview on CNBC Friday morning that Hostess could not avoid liquidation, even if members of its bakers' union ended their strike immediately and went back to work.

The liquidation of the company will mean that most of its 18,500 employees will lose their jobs, Hostess said on Friday.


http://www.chicagotribune.com/business/ ... 5964.story

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PostPosted: Fri Nov 16, 2012 10:21 am 
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Hostess depends on super market shelf space and location to move its products. Over the last decade many spermarkets have decreased or eliminated shelf space dedicated to Hostess products. Management could of revised the product line to meet changing demand, but they did not. To blame the unions for this is bad form.


What I'm guessing will happen is that the Hostess brand names and recipes will wind up getting bought by other companies.

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 Post subject: Re: No more Twinkies?
PostPosted: Fri Nov 16, 2012 10:21 am 
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Those Union workers really taught Hostess a lesson.

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 Post subject: Re: No more Twinkies?
PostPosted: Fri Nov 16, 2012 10:27 am 
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Forced into bankruptcy after a week? That can't be good.

Maybe workers should never be allowed to strike. Pass a law banning strikes. Good idea, glen?

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PostPosted: Fri Nov 16, 2012 10:30 am 
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What I'm guessing will happen is that the Hostess brand names and recipes will wind up getting bought by other companies.

and be produced by non-union bakers at wages much lower than the company was asking it's union bakers to take. Somebody in the union must have made a really bad mistake here and thought the company was bluffing, unless the union sold 18500 members down the river for some alterior motive.

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 Post subject: Re: No more Twinkies?
PostPosted: Fri Nov 16, 2012 10:37 am 
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Forced into bankruptcy after a week? That can't be good.

Maybe workers should never be allowed to strike. Pass a law banning strikes. Good idea, glen?


The company was having financial troubles and might not have survived even with reduced wages and benefits. They let the Union and their workforce know that without more consessions and if the Union walked out that there was no way they could continue business. The Union cost those workers any chance they had at keeping their jobs.

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 Post subject: Re: No more Twinkies?
PostPosted: Fri Nov 16, 2012 10:49 am 
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Forced into bankruptcy after a week? That can't be good.

Maybe workers should never be allowed to strike. Pass a law banning strikes. Good idea, glen?


Hostess filed for Chapter 11 in January. This is a duplicate thread, BTW. I just returned from my local Albersons. Hostess products there have the lowest allocation of shelf space compared to competing products. The assistant store manager was on the floor so I asked him what was up with Hostess. He said that Hostess products have seen a decline in demand for several years and they maintain a small section for a few loyal customers. Otherwise, the shelf space would have been allocated to competing brands with a much higher inventory turnover ratio.

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 Post subject: Re: No more Twinkies?
PostPosted: Fri Nov 16, 2012 10:51 am 
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Hostess filed for Chapter 11 in January. This is a duplicate thread, BTW. I just returned from my local Albersons. Hostess products there have the lowest allocation of shelf space compared to competing products. The assistant store manager was on the floor so I asked him what was up with Hostess. He said that Hostess products have seen a decline in demand for several years and they maintain a small section for a few loyal customers. Otherwise, the shelf space would have been allocated to competing brands with a much higher inventory turnover ratio.


Companies pay the stores for shelf space and for shelf location. The companies with more space and better location pay Albertson's for that area in the store as they do with every other retailer they do business with.

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PostPosted: Fri Nov 16, 2012 10:55 am 
As much as I hate to admit to it, Hostess Chocolate Pies are my vice. I know they are gross, but damn I cannot help myself


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 Post subject: Re: No more Twinkies?
PostPosted: Fri Nov 16, 2012 11:02 am 
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Companies pay the stores for shelf space and for shelf location. The companies with more space and better location pay Albertson's for that area in the store as they do with every other retailer they do business with.


In the end, it is a bit more complicated than that. In the case here it is not Hostess buying shelf space but the distributor. Distibutors carry competing brands and they decide how to use shelf space. This happened to me with one of my favoririte brands of iced coffeee. The distributor (Pepsi) carried Starbucks and Seattles Best. The later was my favorite but was dropped by Pepsi six months ago based on low turnover ratio.

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PostPosted: Fri Nov 16, 2012 11:14 am 
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and be produced by non-union bakers at wages much lower than the company was asking it's union bakers to take. Somebody in the union must have made a really bad mistake here and thought the company was bluffing, unless the union sold 18500 members down the river for some alterior motive.


'Alterior' is not a word.

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PostPosted: Fri Nov 16, 2012 11:26 am 
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As much as I hate to admit to it, Hostess Chocolate Pies are my vice. I know they are gross, but damn I cannot help myself


Possibly due to the sugar content? So far the skyrocketing costs of sugar have not been mentioned as a part of the demise of Hostess products. Pity, huh?

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PostPosted: Fri Nov 16, 2012 11:37 am 
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For decades, Hostess has relied on high sugar content to make their products sell. Increased consumer awareness concerning the dangers involved in elevated sugar consumption helped in the demise of Hostess.

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PostPosted: Fri Nov 16, 2012 12:05 pm 
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Let's look at the headline to the link glen provided.

Quote:
Twinkies Maker Hostess Going Out of Business, CEO Blames Union Strike


That sounds like the biggest line of horseshit.

If you read further into the article....

Quote:
NBC's Savannah Guthrie read a statement on "Today" from the bakers' union that said: “Despite Greg Rayburn’s insulting and disingenuous statements of the last several months, the truth is that Hostess workers and the union have absolutely no responsibility for the failure of this company. That responsibility rests squarely on the shoulders of the company’s decision makers.”

Rayburn responded that he had been “pretty straightforward in all the town hall meetings I’ve done at our plants to say that in this situation I think there is blame that goes around for everyone.”

He denied that the decision to shut down could be a last ditch negotiation tactic to get the union back to the table.

“It’s over,” he said. “This is it.”

Rayburn, who first joined Hostess earlier this year as a restructuring expert, had earlier said that many workers crossed picket lines this week to go back to work despite warnings by union leadership that they'd be fined.

"The problem is we don't have enough crossing those lines to maintain normal production," Rayburn told Fox Business.

Hostess said that production at about a dozen of the company's 33 plants had been seriously affected by the strike. Three plants were closed earlier this week.

The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess had argued that workers must make concessions for it to exit bankruptcy and improve its financial position.

The company, founded in 1930, was fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.

If the motion is granted, Hostess would begin closing operations as early as Tuesday.

"Most employees who lose their jobs should be eligible for government-provided unemployment benefits," Hostess said


Second trip through bankruptcy in a decade?

The title of this post (like 99.999999999999999999999999999999% of glen's other anti-union posts) is a lie.

  • Competition in the snack space
  • Americans are increasingly conscious about healthy eating

So, if "workers making concessions" was the key, how many concessions did the upper management make? Did they take pay cuts?

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PostPosted: Fri Nov 16, 2012 12:34 pm 
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and be produced by non-union bakers at wages much lower than the company was asking it's union bakers to take. Somebody in the union must have made a really bad mistake here and thought the company was bluffing, unless the union sold 18500 members down the river for some alterior motive.


Sorry Glen. Hostess Wonderbread has not been aviailable in my neighborhood for more than two years. They lost the market to Sara Lee, which is also unionized.

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PostPosted: Fri Nov 16, 2012 12:36 pm 
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Company gone under and it's the union's fault as usual? Interesting how it's always the union to blame. they're always the "greedy" ones that gosh oh golly is if they had only been satisfied with lower paychecks. Of course nobody says anything about the people making a whole shitload of money, they're never the greedy ones and anybody who accuses them of being greedy is engaging in class warfare

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PostPosted: Fri Nov 16, 2012 12:40 pm 
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and be produced by non-union bakers at wages much lower than the company was asking it's union bakers to take. Somebody in the union must have made a really bad mistake here and thought the company was bluffing, unless the union sold 18500 members down the river for some alterior motive.


Look glen...they made crap. Wonderbread is crap. The Hostess line of products is mega-crap. Previous posts suggesting that there is less room for crap on supermarket shelves is a bit hit and miss. There is still pretty much as much room for crap on the shelves as there has ever been. But not for Hostess type blatant crap. The crap getting shelf space is crap that smart management makes...crap that now looks like somewhat healthy crap. Fruit filled crap and such. Not sugar filled crap that Hostess has been pumping out and into the guts of fat American kids and fat American adults who never grew up, for a half-century. The company is/was a dinosaur. The best union deal that anybody ever got was not going to save Hostess, it's dinosaur product line, and it's dinosaur management.

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PostPosted: Fri Nov 16, 2012 12:45 pm 
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A copy of interesting reviews on glassdoor.com

“do not work here,unfair”
Current Driver in La Crosse, WI – Reviewed 4 weeks ago
Pros – work by your self
no fun,use to be good pay
Cons – lots of hours,first start out 70 ours a week

Going down the toilet”
Current RSP in Mankato, MN – Reviewed 5 days ago – New
Pros – My customers are the only good things. Pretty much left alone unless there is a problem. Pay is OK except it's not what it use to be
Cons – No support. The management don't have any real knowledge of the business. The manage feels that they can run everything from behind the desk
Advice to Senior Management – Some one needs to be in direct contact with store management . The rsp doesn't have the time to stand around.

“What a Joke”
Current Inside Worker in Chicago, IL – Reviewed 3 weeks ago
Pros – It was a good job before they took nearly 1/4th of the salary away Depends on what position you have for how many hours you work. Inside workers are 40/45, route sales are 60+
Cons – Poor management. Use of cardboard that is thrown away after one use; there is money for that, but not to pay your workers. real nice. Terrible hours, wage reductions do not make me wanna work any harder
Advice to Senior Management – Be a manager, do not run routes. Your job is to manage people and sell our brand. Not be vacation relief

“Run as fast as you can for this company”
Current RSR in Phoenix, AZ – Reviewed Sep 19, 2012
Pros – None that I can think of. Pays ok, but they are cutting that, benefits were good, but they are cutting those also.
Cons – To many to list,
Long Long thankless hours, split days (nights) off, working weekends, no life/work balance at all.
Lazy, incompetent managers that hide in the office and send emails.
Advice to Senior Management – Hire some management that can actually do the job, sell the company to someone else

“hostess brands”
Current Finishing in Emporia, KS – Reviewed Sep 9, 2012
Pros – right now you get 40 hrs and overtime and paid vacations
Cons – they took our pension and is in bankruptcy

“Not bad, be better if it was more stable”
Current District Manager in Saint Louis, MO – Reviewed Aug 3, 2012
Pros – pay, benefits and expenses. Vacation is good too. I have enjoyed my territory as well.
Cons – unstable- Everyone in mid/senior leadership is there because of time on job and not knowledge, There is a lot of waste that goes in the trash that could be additional GP.
Advice to Senior Management – sell to a capable owner

“What Happened to this Company”
Current Route Sales in Chickasaw, AL – Reviewed Aug 18, 2012
Pros – Always Hiring, good benefits, good guys to work with on the average
Cons – I have seen this company change drastically. I guess I am old Now, I made great money here 20 years ago. Now, things are ran by greedy, dishonest , unexperienced uppermanagement, who have NO BAKERY distribution training. This IS ASHAME FOR SURE. DM's hide behind emails and texts, never go out on the market, demanding things that they have NO CLUE about. A real Bread Man build a report with their customers. I could go on and ON , its sad. so much waste.
Advice to Senior Management – RECRUIT SOME OLDTIMERS, WHO UNDERSTAND DISTRIBUTION, this is not a soda delivivery company. GET SOME EXPERIENCE IN HERE. STOP THE GREED, STOP THE WASTE, NO WONDER YOU ALL LOOSE MONEY, GET OUT OF YOUR OFFICES AND GO CHECK OUT THE MARKET..OR IS IT TOO HOT??

“work life of a salesman”
Current Route Sales Representative in Columbus, OH – Reviewed Aug 13, 2012
Pros – Good people to work with. The pay is fairly good. The benefits (for now) are alright. Immediate supervision is decent.
Cons – Long hours and dealing with a lot of people who maybe shouldn't have been placed in a position of authority. Second bankruptcy for the company since I've been with them. Doesn't look like we'll survive this one.
Advice to Senior Management – Get the bankruptcy situation resolved. Whichever way it goes is preferable to going months on end not knowing if the doors will be locked the next day you come in.

http://www.glassdoor.com/Reviews/Hostes ... 329177.htm

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PostPosted: Fri Nov 16, 2012 12:48 pm 
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Did you catch the "they took our pension" in my post above. If that's true, which it probably is cause that kind of shit happens a lot, and if the employees were paying into that pension that's fucking theft, at the very least. Definitely a criminal act but as usual probably nothing will be done about it

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PostPosted: Fri Nov 16, 2012 1:01 pm 
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I knew glenn would post this. Thus why I checked in here for the first time this week.

However

4 corporate buyouts from 1981 to 1995 saddled an otherwise excellent company with a massive debt structure.

But on the way out the corporate vultures want to blame anyone else but themselves.

I've always held the opinion that if your company cannot afford to pay a decent wage to it's employees you should go out of business and make room for one that can.

Sadly Hostess is a victim of the 80's Romney style corporate raider buyout scams. They took an otherwise stellar brand with good infrastructure products and marketing and tanked it. Replacing experienced managers with young cheap college MBAs.

Now the top guys are gonna make a mint using Bankruptcy rules and piecemeal selling of the brand.

Romney business practices to a T

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Last edited by climbski on Fri Nov 16, 2012 1:05 pm, edited 2 times in total.

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PostPosted: Fri Nov 16, 2012 1:02 pm 
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Quote:
Over the past eight years since the first Hostess bankruptcy, BCTGM members have watched as money from previous concessions that was supposed to go towards capital investment, product development, plant improvement and new equipment, was squandered in executive bonuses, payouts to Wall Street investors and payments to high-priced attorneys and consultants.


http://www.vendingmarketwatch.com/news/ ... y-closings

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