Twinkies and Wonder Bread are history as Hostess shuts down after labor dispute
washingtonpost.com
washingtonpost.com
Side note: this is a terrible submission title. For one, that's not the headline of the linked article, and two, these brands aren't "history" -- they will be sold to other companies just like all their other assets.
We haven't seen companies shutting down because of labor unions at least in a while. Yes there are strikes at companies but it finally works out.
This is just the beginning and there will be many more to follow where a good company shuts down and thousands loose their jobs. In this, 18000 workers will loose their job. Thanks to Labor unions.
And they had offers to sell the company to other bakeries.
There might have been some management/investment shenanigans going on
Fun fact: twinkies were created to look like a banana alternative and first filled with banana filling - during WorldWar II when there was a banana shortage
Right to work lowers employer burden why someone is laid off/fired. Along with that, makes it a felony to require union dues to work at a company. However, the union is still required to represent you upon its charter.
Hostess also lost a sizable chunk of money with the lawsuit concerning Sachs donuts. Because of things I do not understand, Hostess had to kill all lines of yeast donuts and all "packaged fresh" yeast donuts. And from talking to employees of Hostess in Columbus,IN, those machines were scrapped.
A good reason why the union was giving hell was Hostess wanted to cut wages by almost 20%: the union already agreed to a 10% cut and reduction of benefits. Hostess wanted 9% more, and threw a tantrum here locally.
Who was in the right? I have no idea. But it looks the the nuclear option was used: blow it to the ground.
Not sure what was up with that, but there was definitely profit to be had if they didn't want to sell.
Strange that moving $2.5 Billion of product a year isn't profitable. Doesn't sound right.