New Twinkie Maker Shuns Union Labor

The company that bought the Twinkie, HoHo and Ding Dong brands out of bankruptcy is gearing up to reopen plants and hire workers, but it won’t be using union labor.Hostess Brands LLC—Metropoulos & Co. and Apollo Global Management LLC’s APO -2.11% new incarnation of the baking company that liquidated in Chapter 11—is reopening four bakeries in the next eight to 10 weeks,** aiming to get Twinkie-deprived consumers the classic snack cake by mid-July.**

[http://sistertoldjah.com/archives/2013/04/24/new-maker-of-twinkies-non-union-workers-will-be-used-to-restart-plants/

I really never was a fan of Twinkies but I am glad the company is starting up again. I remember around here several manufactors closed and went elsewhere to avoid unions that drove them out.](http://sistertoldjah.com/archives/2013/04/24/new-maker-of-twinkies-non-union-workers-will-be-used-to-restart-plants/)

Illegal Mexicans?

I think this is completely justified. The unions almost shut this company down for good. First thing on the “Rebuilding” Plan would be an elimination of all factors that brought the company to bankruptcy previously. Therefore, bye bye unions

1 Like

Couldn’t happen to a better group.

[quote=“FloridaLibertarian, post:3, topic:39207”]
I think this is completely justified. The unions almost shut this company down for good. First thing on the “Rebuilding” Plan would be an elimination of all factors that brought the company to bankruptcy previously. Therefore, bye bye unions
[/quote] Time for a reality check.
Hostess has been sold at least three times since the 1980s, racking up debt and shedding profitable assets along the way with each successive merger. The company filed for bankruptcy in 2004, and then in 2011. Hardly any thought was given to the line of products, which, really began to seem a bit dated. And then management gave themselves several raises, all the while complaining that the workers who actually produced the products that made the firm what money it did earn were grossly overpaid relative to the company’s increasingly dismal financial position. The bottom line is that Hostess’ management should have reshaped the company into one that sold not only Twinkies and Ding-Dongs but also the healthier snacks people want now.

[quote=“OldStyleBlues, post:5, topic:39207”]
Time for a reality check.
Hostess has been sold at least three times since the 1980s, racking up debt and shedding profitable assets along the way with each successive merger. The company filed for bankruptcy in 2004, and then in 2011. Hardly any thought was given to the line of products, which, really began to seem a bit dated. And then management gave themselves several raises, all the while complaining that the workers who actually produced the products that made the firm what money it did earn were grossly overpaid relative to the company’s increasingly dismal financial position. The bottom line is that Hostess’ management should have reshaped the company into one that sold not only Twinkies and Ding-Dongs but also the healthier snacks people want now.
[/quote]So you are mad you did not get share of the profits. Talk about sour grapes.

[quote=“samspade, post:6, topic:39207”]
So you are mad you did not get share of the profits. Talk about sour grapes.
[/quote]IDK about that, but it is pretty obvious he believes the company belonged to someone other than who it did belong to. If a company wants to run itself into the ground, it is their right.
Unions suck. Been there, done that, don’t want the shirt.

3 Likes

Tastykakes are better anyway, and they’re made by union labor. No more Twinkies for me.

[quote=“Tiny1, post:7, topic:39207”]
IDK about that, but it is pretty obvious he believes the company belonged to someone other than who it did belong to. **If a company wants to run itself into the ground, it is their right.**Unions suck. Been there, done that, don’t want the shirt.
[/quote] Nice sentiment. After the first bankruptcy the employees gave up a milti-million dollar concession which was supposed to be reinvested into the company. Instead management took the money and ran. They knew what they were doing.

[quote=“OldStyleBlues, post:9, topic:39207”]
Nice sentiment. After the first bankruptcy the employees gave up a milti-million dollar concession which was supposed to be reinvested into the company. Instead management took the money and ran. They knew what they were doing.
[/quote]So they work for a stupid company. So, they work for dishonest people. OK. Still, the the vampire company has the right to drive a steak through its own corporate heart, if it so chooses. The company that bought them, has the right to oppose the union.
What are you getting your shorts in a wad, about?

[quote=“Tiny1, post:10, topic:39207”]
So they work for a stupid company. So, they work for dishonest people. OK. Still, the the vampire company has the right to drive a steak through its own corporate heart, if it so chooses. The company that bought them, has the right to oppose the union.
What are you getting your shorts in a wad, about?
[/quote] Mismanagement and a dying business model took them down, not the labor.

[quote=“OldStyleBlues, post:11, topic:39207”]
Mismanagement and a dying business model took them down, not the labor.
[/quote]So? What has that to do with the price of eggs in China?
Who cares why they went “belly up”. They’re dead. Another company took over production of this line and decided No Union Labor. Done. Nothing else to see. Why so mad, bro?

OSB??? where do you get your information?

[quote=“njc17, post:13, topic:39207”]
OSB??? where do you get your information?
[/quote] http://http://www.forbes.com/sites/adamhartung/2012/11/18/hostess-twinkie-defense-is-a-management-failure/

By constantly trying to defend and extend its old business, leadership at Hostess killed the company. But not realizing changing trends in foods made their products irrelevant – if not obsolete – and not changing Hostess leaders allowed margins to disintegrate. Rather than developing new products which would be more marketable, priced for higher margin and provide growth that covered all costs Hostess leadership kept trying to financial engineer a solution to make their horse and buggy competitive with automobiles.
http://http://www.fels.upenn.edu/news/twinkie-recipe-bankruptcy-why-hostess-workers-were-willing-risk-liquidation
Hostess went through a managed bankruptcy previously between 2004 and 2009.** A combination of union concessions of over $110 million dollars, including thousands of layoffs, an infusion in capital from a private equity company, and a restructuring of the company’s debt, allowed Hostess to emerge from bankruptcy **(see David Kaplan’s detailed article in Fortune for the specifics). According to Jay Carney at CNBC, “What happened next was just a mess. The CEO quit. **The unions described the pay of the new CEO as ‘looting.’ Acrimonious would be a very mild term to describe relations between management and the unionized workers. One person familiar with the matter described it as ‘all-out war.’” Hostess asked for, and received from bankruptcy court, a $1.5 million dollar raise for the CEO and 80% raises for nine top executives. **Workers felt their sacrifices had been used to reward the same management that that was driving Hostess into the ground. Thus earlier this week when Hostess threatened to liquidate the company

Big deal. They gave themselves raises and the company keeps going bankrupt. Bad business practice. What do you want us to do about a private business?

[quote=“Seravee, post:15, topic:39207”]
Big deal. They gave themselves raises and the company keeps going bankrupt. Bad business practice. What do you want us to do about a private business?
[/quote] Just pointing out how the anti-union right was hemming and hawing how labor took the company down when that clearly wasn’t the case.

Ok, I accept that. Corporations like Hostess have been living in vaccuums for some time now. Now this being said, and as Blatantly Anti-union as I am I will add. As with hostess so with any older corporation, union costs, dues, wages, benefits, can drive product cost to the point that cutting back on material, method and sales making quality less viable, thereby compromising product integrity and eventually resulting in loss of sales and the cycle continues. Now non union shops have their own issues. Blimpo which has Entemans, can be a case in point. I have found the overall quality of entemams to be terrible, underbaked, cheap sugars, . But for hostess The string finally broke. There is no way they could have continued on especially in the wake of today’s economic downturn. All of Detroit is feeling the same breakdown of union economics. The American manufacturing institute is failing because American business can no longer afford excessive salaries AND exhorbitant benefits.

[quote=“njc17, post:17, topic:39207”]
Ok, I accept that. Corporations like Hostess have been living in vaccuums for some time now. Now this being said, and as Blatantly Anti-union as I am I will add. As with hostess so with any older corporation, union costs, dues, wages, benefits, can drive product cost to the point that cutting back on material, method and sales making quality less viable, thereby compromising product integrity and eventually resulting in loss of sales and the cycle continues. Now non union shops have their own issues. Blimpo which has Entemans, can be a case in point. I have found the overall quality of entemams to be terrible, underbaked, cheap sugars, . But for hostess The string finally broke. There is no way they could have continued on especially in the wake of today’s economic downturn. All of Detroit is feeling the same breakdown of union economics. The American manufacturing institute is failing because American business can no longer afford excessive salaries AND exhorbitant benefits.
[/quote] I agree with most of what you’ve said. The success or failure all depends on the Union, the business model and the industry.

This is exactly what one would expect of capitalism. One business fails due to a number of factors…management greed, union greed, poor business plan, changing tastes and demographics. Another group of investors comes along and picks up the assets it wants for a song…and puts together a new company plan it thinks will work to make $$ for them. Excess costs, personnel, facilities and product lines shed…and just the good stuff left. …Till the next cycle.
I just hope they are still gonna make SnowBalls!!

https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcR_CBlJpMnyCnKDE2lCoIMOAT6dPZh8UFoLGmkv6voRF5JkYinE8g

[quote=“Cam, post:19, topic:39207”]
This is exactly what one would expect of capitalism. One business fails due to a number of factors…management greed, union greed, poor business plan, changing tastes and demographics. Another group of investors comes along and picks up the assets it wants for a song…and puts together a new company plan it thinks will work to make $$ for them. Excess costs, personnel, facilities and product lines shed…and just the good stuff left. …Till the next cycle.
I just hope they are still gonna make SnowBalls!!

https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcR_CBlJpMnyCnKDE2lCoIMOAT6dPZh8UFoLGmkv6voRF5JkYinE8g

[/quote] Haven’t had one of those since I was 18, wow.