Union Kills the Twinkie

[Tornicade]

Interstate bakeries had 32,000 employees in 2005. it paid 330 million to raltson in 1995 for its dolly

when it first entered into bankruptcy it became a private corp under the control of a prvate holding company.

December 15, 2007 | From Times Wire Services
Interstate Bakeries Corp., maker of Twinkies snack cakes, said a reorganization proposal from Yucaipa Cos. and the Teamsters union did not constitute a qualifying bid for the company under terms set in Bankruptcy Court. The Kansas City, Mo.-based company said it would continue discussions with the Teamsters and Yucaipa, which submitted a "possible plan of reorganization" Thursday that offered to provide creditors with $580 million. Yucaipa is controlled by Los Angeles billionaire Ron Burkle.

the company instead tied its wagon around the hedge funds

Interstate Bakeries Corp. won court approval of a financing deal potentially funding its reorganization and establishing a process to let rival companies bid for the maker of Wonder Bread and Twinkies.
U.S. Bankruptcy Judge Jerry W. Venters in Kansas City, Mo., approved the proposal to name an affiliate of hedge fund manager Silver Point Capital as the so-called stalking-horse bidder. Silver Point is offering as much as $400 million in funding.

 

[Chardon]

I want to blame Obama, but I know that isn't true
or

THIS IS BECAUSE THE BAKERS ARE DIRTY SOCIALISTS. ANOTHER AMERICAN BRAND FALLING VICTIM TO THE RED SCARE.

 

[southernflyer]

I went into the Hostess outlet on Colonial today and talked to one of the soon to be fired workers once all their inventory is delivered or sold. He told me the rules were the same they had 20 years ago. A guy delivering Twinkies to a store only delivered Twinkies, they had to have a separate driver per contract for the Wonder bread. So instead of one guy with one truck, they had two guys with two trucks to do duplicate routes. Instead of being efficient and allowing the company to have 10 guys doing 10 routes, they had 20 guys doing 10 routes. I felt bad for the guy, but bought some cupcakes half off. I think it was the first time in at least five years I had Hostess cupcakes.

 

[Pick6]

I went into the Hostess outlet on Colonial today and talked to one of the soon to be fired workers once all their inventory is delivered or sold. He told me the rules were the same they had 20 years ago. A guy delivering Twinkies to a store only delivered Twinkies, they had to have a separate driver per contract for the Wonder bread. So instead of one guy with one truck, they had two guys with two trucks to do duplicate routes. Instead of being efficient and allowing the company to have 10 guys doing 10 routes, they had 20 guys doing 10 routes. I felt bad for the guy, but bought some cupcakes half off. I think it was the first time in at least five years I had Hostess cupcakes.

That is so dumb that its hard to believe.

 

[Randolphkeys]

When I was working for a little over minimum wage during the summers in high school, that Hostess Outlet store on Pearl Road was the shit. I'd get three different pies for a total of one buck.

The tapeworm was free with every purchase.

 

[FlatulenciaRoar]

I went into the Hostess outlet on Colonial today and talked to one of the soon to be fired workers once all their inventory is delivered or sold. He told me the rules were the same they had 20 years ago. A guy delivering Twinkies to a store only delivered Twinkies, they had to have a separate driver per contract for the Wonder bread. So instead of one guy with one truck, they had two guys with two trucks to do duplicate routes. Instead of being efficient and allowing the company to have 10 guys doing 10 routes, they had 20 guys doing 10 routes. I felt bad for the guy, but bought some cupcakes half off. I think it was the first time in at least five years I had Hostess cupcakes.

And the union is blaming poor management when they are imposing short-sighted, self-defeating practices like this. :thumbdown

 

[Randolphkeys]

And the union is blaming poor management when they are imposing short-sighted, self-defeating practices like this. :thumbdown

Do a search, unions negotiate job cuts all the time. In a one minute search I found cuts to union jobs with American Airlines, casinos in Gary, Indiana, and Philadelphia newspapers. Teaching jobs in my district have been cut consistently due to funding. Management wanted a scapegoat.

Unions negotiate a fair way to handle tough times, and it seems that the union voted to nix one negotiation. If Silver Point Capital cared, they would have gone back to negotiations. I keep reading articles that say they didn't care to keep the business going, one way or another.

 

[Lee]

Do a search, unions negotiate job cuts all the time. In a one minute search I found cuts to union jobs with American Airlines, casinos in Gary, Indiana, and Philadelphia newspapers. Teaching jobs in my district have been cut consistently due to funding. Management wanted a scapegoat.

Unions negotiate a fair way to handle tough times, and it seems that the union voted to nix one negotiation. If Silver Point Capital cared, they would have gone back to negotiations. I keep reading articles that say they didn't care to keep the business going, one way or another.

Not all unions are created equal. The biggest mistake many are making is grouping them all together. Its like grouping all banks or wealthy people together. Unions have too much power, and when a poorly run union exercises that power improperly, jobs and companies are lost.

 

[FlatulenciaRoar]

Do a search, unions negotiate job cuts all the time. In a one minute search I found cuts to union jobs with American Airlines, casinos in Gary, Indiana, and Philadelphia newspapers. Teaching jobs in my district have been cut consistently due to funding. Management wanted a scapegoat.

So? My post was regarding a specific union in a specific situation. I don't understand what your statement has to do with what I said.

Unions negotiate a fair way to handle tough times, and it seems that the union voted to nix one negotiation. If Silver Point Capital cared, they would have gone back to negotiations. I keep reading articles that say they didn't care to keep the business going, one way or another.

However the company DID make an offer that would have kept the business going and kept the jobs. The union crippled the company with the strike and rejected the offer. The union misjudged their position, they cut off their nose to spite their face.

 

[MoFlo]

I went into the Hostess outlet on Colonial today and talked to one of the soon to be fired workers once all their inventory is delivered or sold. He told me the rules were the same they had 20 years ago. A guy delivering Twinkies to a store only delivered Twinkies, they had to have a separate driver per contract for the Wonder bread. So instead of one guy with one truck, they had two guys with two trucks to do duplicate routes. Instead of being efficient and allowing the company to have 10 guys doing 10 routes, they had 20 guys doing 10 routes. I felt bad for the guy, but bought some cupcakes half off. I think it was the first time in at least five years I had Hostess cupcakes.

If that's true, that has to be the dumbest thing I've seen in quite a while.

I work for Nestle and came from the Edy's division. We just integrated with the Digiorno guys. This would be the equivalent of us still sending separate trucks to all the stores.

There's absolutely no point wasting all that $ when there's no need to.

 

[The Voice]

Twinkies suck and Little Debbie is better.

 

[Randolphkeys]

So? My post was regarding a specific union in a specific situation. I don't understand what your statement has to do with what I said. However the company DID make an offer that would have kept the business going and kept the jobs. The union crippled the company with the strike and rejected the offer. The union misjudged their position, they cut off their nose to spite their face.

Are we still talking about the company which has 10 individuals making 46% of the salary?

 

[NarlCavs]

Hostess has been struggling for a while and as the stories have stated filed bankruptcy twice in recent years. Easy to blame a union, and they weren't exactly perfect in this situation, but corporate greed and incompetence can't be overlooked.
It's not all because of a union that a long time successful company struggled, had so many problems and had to go out of business. It's just a convenient excuse.

Guess it's another example of the self proclaimed "job creators" at work once again.

 

[Lee]

Are we still talking about the company which has 10 individuals making 46% of the salary?

Where are you getting your outrageous numbers from?

So there are 18k workers (not the top 10). Lets say the average worker makes 30k a year, .that is 540 million. Now that means the total salary of the company is 1 billion, the remaining 10 guys split $460 million.


So by your numbers you are saying that 10 guys at Hostess made 46 million a year each. Not just the number one guy, but also the number 10 guy?

I might have been born at night, but it wasnt last night. I like you Keys, but just because you type it doesnt make it true. Those numbers you quoted are way off.

 

[Lee]

Hostess has been struggling for a while and as the stories have stated filed bankruptcy twice in recent years. Easy to blame a union, and they weren't exactly perfect in this situation, but corporate greed and incompetence can't be overlooked.
It's not all because of a union that a long time successful company struggled, had so many problems and had to go out of business. It's just a convenient excuse.

Guess it's another example of the self proclaimed "job creators" at work once again.

If i never hear the term Corporate Greed again it would not be soon enough. Since when did the "American" dream become "corporate greed?"

I am not saying it is the union's fault, I am not saying its not. I am just saying just because they make allot of money doesnt make them Greedy. I would better most of the people quitting their job's so they could occupy wall street had either iphones or ipods in their pocket and Steve Jobs was one of the greediest of them all.

Hypocrisy at its finest.