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  1. #31  
    Fabulous Poster
    Join Date
    Mar 2010
    Quote Originally Posted by Odysseus View Post

    Who in their right mind would join a union that had already destroyed the company once?
    This is probably a waste of time. After all, you have no skin in this or any other private industry.

    Hostess management's efforts to blame union intransigence for the company's collapse persisted right through to the Thanksgiving eve press release announcing Hostess' liquidation, when it cited a nationwide strike by bakery workers that "crippled its operations."

    That overlooks the years of union givebacks and management bad faith. Example: Just before declaring bankruptcy for the second time in eight years Jan. 11, Hostess trebled the compensation of then-Chief Executive Brian Driscoll and raised other executives' pay up to twofold. At the same time, the company was demanding lower wages from workers and stiffing employee pension funds of $8 million a month in payment obligations.

    Hostess management hasn't been able entirely to erase the paper trail pointing to its own derelictions. Consider a 163-page affidavit filed as part of the second bankruptcy petition.

    There Driscoll outlined a "Turnaround Plan" to get the firm back on its feet. The steps included closing outmoded plants and improving the efficiency of those that remain; upgrading the company's "aging vehicle fleet" and merging its distribution warehouses for efficiency; installing software at the warehouses to allow it to track inventory; and closing unprofitable retail stores. It also proposed to restore its advertising budget and establish an R&D program to develop new products to "maintain existing customers and attract new ones."

    None of these steps, Driscoll attested, required consultation with the unions. That raises the following question: You mean to tell me that as of January 2012, Hostess still hadn't gotten around to any of this?

    The company had known for a decade or more that its market was changing, but had done nothing to modernize its product line or distribution system. Its trucks were breaking down. It was keeping unprofitable stores open and having trouble figuring out how to move inventory to customers and when. It had cut back advertising and marketing to the point where it was barely communicating with customers. It had gotten hundreds of millions of dollars in concessions from its unions, and spent none of it on these essential improvements.

    Just like I said: they borrowed money, didn't pay their bills and stole what was left over. There is no excuse for Hostess or any of these old companies going under like they have in the last two decades. It's theft, and because you won't see it, you are no better than the thief.
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  2. #32  
    Moderator RobJohnson's Avatar
    Join Date
    Apr 2006
    Southern Nevada
    Quote Originally Posted by Novaheart View Post

    Hostess was in the toilet due to poor management and market anticipation (ie demand for higher quality goods) back in 2004. Grupo Bimbo tried to buy it in 2007.

    None of this has anything to do with the union. It's another case of an old company which should have been rock solid, being leveraged, mortgaged, and robbed by its own executives.

    If they make junk food ineligible for food stamps, all of these crapmakers will go under.
    The rising costs of raw ingredients are making it tough for all food companies. Hostess did have some issues at the top, but what company has not during this Obama rescission? Several unions agreed to a new contract that would of worked for both sides, one decided to hold out and strike........closing the doors on the company. How could you say this was not a union issue? The other unions were pissed off at each other, not the company!

    Once again the labor movement shot themselves in the foot. In this case the bullet hit them right in the clogged arteries full of saturated fat from the Twinkies.
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