Countdown Clocks

Countdown Clocks

Posts tagged "BCTGM"

Visit for breaking news, world news, and news about the economy

(via Matt Taibbi on MSNBC’s The Ed Show: Hostess’ ‘Incompetent’ Management Killed The Company)

A little liquidation scare is no reason to mess with Twinkies, according to Matt Taibbi.

The Rolling Stone contributor told MSNBC’s Ed Schultz Monday that workers and their “pensions and benefits” are getting the blame for the possible Hostess shutdown instead of the company’s management, who, he says, is actually responsible for the Twinkie-maker’s woes.

“Everybody likes Twinkies, there’s nothing wrong with the product,” Taibbi said. “The workers are doing a good job, they’re putting out a good product — it’s that management has been incompetent, and it’s unfortunate that the narrative has shifted all the blame to the workers.”

Taibbi’s assessment of the situation isn’t universal, with many people blaming the company’s demise on the American consumer’s changing tastes.

Hostess announced Friday that the company planned to liquidate and lay off all of its 18,500 workers, citing an ongoing strike that the company claimed was crippling its operations. On Monday, a bankruptcy judge ordered that Hostess enter into mediation with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, the group representing the striking workers, saying that he had “serious questions as to the logic behind this strike.”

The Teamsters, the other union representing Hostess workers, agreed to major pay and pension cuts in September in an aim to save the company and their jobs, even though they had already taken a hit during the company’s first bankruptcy.

“It’s part of this overall mythology that we have to blame the workers for wanting benefits and wanting a living wage,” he said.

Hostess Brands Inc. lived to die another day.

The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with and its second biggest union. As a result, the company will continue with a hearing on Wednesday in which a bankruptcy court judge will decide if the company can liquidate

The talks had come as a surprise after Hostess declared last week it would move to wind down its business and start selling off its assets in bankruptcy court. After making its case to liquidate on Monday, however, the bankruptcy judge hearing the case noted the two sides hadn’t yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences.

The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, which represents about 30 percent of the company’s workers, says the company’s demise was the result of years of mismanagement, however, and that workers have already given steep concessions over the years.


Hostess Brands and the Bakery, Confectionery, Tobacco Workers and Grain Millers’ International Union agreed to mediate on Monday, according to a tweet from CNBC. The agreement will reportedly prevent a Hostess liquidation, which the company announced Friday could be imminent.

The Bakers’ Union had been fighting a proposal to significantly cut worker pay and pensions, and Hostess claimed that the striking workers made it impossible for the company to produce its products.

h/t: Huffington Post

The REAL facts about why Hostess shut down.