Ah, A sign of the times.
Hostess Foods, maker of Ding Dong, Wonder Bread, Twinkees and a number of other popular (and healthier) bakery foods is selling off it's assets and shutting its doors:
"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said CEO Gregory Rayburn in a statement.
What happened is simply this...in spite of being the number 2 bakery company in the nation, Hostess was already in trouble because of increased costs for fuel, energy, grains and supplies, and like GM, the cost of a unionized workforce.
They filed for bankruptcy back in January, but managed to keep going because hedge funds like Silver Point Capital and Monarch Alternative Capital purchased their debt and came up with a plan to restructure the company an dmake it viable again, but part of that eventually meant that the unions were going to have to bear some of the pain in the form of reduced pay and benefits.
The Teamsters were willing to deal, and signed a new agreement to keep Hostess alive.The AFL_CIO affiliated Bakery, Confectionery, Tobacco Workers and Grain Millers International Union which represents 5,000 workers at Hostess refused, and voted to strike.
So Hostess is ceasing production, closing down and selling off its assets to pay its creditors.With Obamacare and increased regulations and taxes on the horizon, they figured it was time to shut their doors.
"It's been a very sad day," Rayburn told CNN. "I think that this was just a monumental failure on the part of everyone involved, and it was just the wrong outcome."
It's even sadder for the over 18,500 workers who are going to lose their jobs because 5,000 members of the Baker's union decided to go for broke.In a reprise of that old proverb, instead of half a loaf, they're going to end up with none.
Hostess, among its other assets has its brand names and proprietary recipes to sell, and someone will probably be eventually making Ding Dongs, Wonder Bread, and Twinkees again. But it probably won't be the people that used to work at Hostess.Those jobs are history.
Richard Trumka, the openly socialist head of the AFL-CIo made the expected remarks about 'Bain-style Wall Street vultures' and 'crony capitalism, and I'm sure it was a fine show that will get plenty of favorable attaboys on the left.
Of course, without those so-called Wall Street vultures Trumka is so exercised about, Hostess would have folded back in January,but hey, why ruin a good show?
Because that's where we are now. Circuses, but no bread.
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2 comments:
And "circuses but no bread" is the economic part of what the nation will experience over the next 4 yrs. Obamacare really kicks into high gear in 2014 and what a surprise it will be. The middle class who voted for Obama are going to face the true cost of what providing free health care for the poor really costs them and they ain't going to be happy campers...
Then there's the Middle east, Russian aggression and China eying the Azores, with the real prospect of taking over our Air Force base, which gives China a base from which to contest the Atlantic.
But hey, cutting the military by 600 billion won't affect our national security...not to mention Obama's desire to cut our nukes to less than China's.
What could go wrong?
a related article:
http://bangordailynews.com/2012/11/16/business/maines-striking-hostess-workers-say-companys-collapse-a-strong-message-of-union-resolve/
i'm sure ff and i will be on opposite sides of this, and i'm sure he'll find my comment(s) offensive.
i find this funny.
why is it the corporations are always the greedy ones?
why are white people the only ones who are racist?
anon can answer these two questions. only a marxist can answer those two questions.
i am kind of wondering if hostess didn't take a look around at the corporate environment that currently exists in what's left of this country.
you have the solyndra model.
you have the GM model.
a copy of a comment from another site:
McKee Foods of TN, the maker of Little Debbie snacks, is a family-owned business that has been profitable every year since 1960.
They have never let the unions dictate to the company. And they thrive.
Here endeth the lesson.
it is going to be interesting to see if a hussein bundler get's some stimulus money to open this organization/place up again. they could sell the hard assets at auction, then force the former hostess people to fork over the recipes. you think that won't happen. just ask ambassador stevens. oh, wait? you can't ask ambassador stevens. he of the broom handle in the rectum of so recent past.
next will come government twinkee, to go along with government big bird.
the union membership view this as a victory. now they get to stay at home and collect unemployment for two years, or more, depending on what the mid-term elections bring. and you know how they will vote.
just think of it. hostess is not going to have to adhere to obamacare, and these former employees are going to have to continue to carry insurance.
oh, wait.
these guys were exempt from obamacare.
what a kawinkeedink?
no matter. the new years for these people is not going to bring any cheer. curl up with your hard won victory. let it keep you warm on those maine winter nights.
we aren't even out of november yet. get ready for more of this to come.
and here i thought the unions were only interested in killing the airlines and auto manufacturers.
can't wait to see what the unions do/say when hussein kills the coal mining industry.
in think this is funny.
who cares?
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