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Hostess Mediation Fails, Liquidation To Proceed; Furious Laid Off Workers Now Turn On Labor Union

Tyler Durden's picture





 

Last week, when discussing the next steps for the company, and specifically the hope that mediation may resolve the epic animosity between management and workers, we stated that "What makes a mediation improbable is that the antagonism between the feuding sides has certainly hit a level of no return: "Several unions also objected to the company's plans, saying they made "a mockery" of laws protecting collective bargaining agreements in bankruptcy. The Teamsters, which represents 7,900 Hostess workers, said the company's plan would improperly cut the ability of remaining workers to use sick days and vacation." Sure enough, moments ago we learned that mediation has now failed and the liquidation may proceed. And since in America nobody understands that proper sequence of events involved in a bankruptcy liquidation, where the valuable parts always end up being acquired by someone, in this case the Twinkie brand and recipe, let the pointless Ebay bidding wars over twinkies continue. As for what really happens next, if indeed Bimbo is prohibited from acquiring the assets in the Stalking Horse auction due to anti-trust limitations, then the buyer will almost certainly be a "financial", i.e., another PE firm, whose coming means the end of any hopes and dreams of preserving union status at fresh start Hostess, or whatever the new firm will be named.

From the WSJ:

Hostess Brands Inc. said Tuesday night it would proceed with liquidation plans after mediation fails.

Earlier Tuesday, the head of the bakers union whose strike precipitated Hostess liquidation plans didn't attend a last-ditch mediation session and wasn't hopeful about its prospects, he said.

"I'm not too optimistic about this mediation," Frank Hurt, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, said when reached earlier Tuesday afternoon in Columbus, Ohio. He said he couldn't get to New York, where the session was taking place; instead, he said, the union's secretary-treasurer was attending.

 

The mediation came at a judge's suggestion after the Twinkie maker said Friday that a week-long strike by the bakers left the company no choice but to seek a bankruptcy judge's approval for liquidation.

 

The judge, Robert Drain, urged mediation, citing among other things the hope for saving some 18,500 jobs. The company filed for bankruptcy protection for the second time in January.

 

The judge indicated Monday that if mediation wasn't successful, Hostess could return to court Wednesday to pursue its liquidation plan.

 

Doug Mansky, a Hostess driver in Detroit and a member of the International Brotherhood of Teamsters, was in the process of moving to a cheaper condominium on Tuesday, after his union had agreed to an 8% pay cut that he said would shave $200 a week from his income. After Judge Drain cleared Hostess to impose the same new labor terms on the bakers union, they went on strike.

 

"I hope things work out. I'm going to be 49 and trying to find a job in a market that's terrible," Mr. Mansky said.

Sadly, the reality of learning just how bad the labor market truly is, all smoke and mirrors of a recovery aside, will now have to be experienced by not only Mr. Manksy but 18,499 of his fellow co-workers, who may have been duped into hoping by their union that by holding out a hardline stance, they would gain something.

They have now lost everything. And not too unexpectedly, the workers are now turning on the Union!

[S]ome Hostess workers in another union awaiting the
mediation results criticized Mr. Hurt, the 20-year president of the
bakers union, who defended his decisions and actions during the
company's bankruptcy process.

 

Scott Quenneville, a Hostess truck driver represented by the Teamsters, said he feels his colleagues were misled by Mr. Hurt into believing that a buyer would swoop in for the company. Mr. Hurt on Sunday said he thought there was a good chance a buyer would emerge who would give union members their jobs back.

 

"Frank misled a lot of people. He was not going to settle for anything less than closing the company down, because they didn't want that 8% pay cut," said Mr. Quenneville. "If you don't want the job, leave the job. Why ruin 18,000 jobs?"

 

"I didn't mislead anybody on anything," Mr. Hurt said. He said he didn't tell workers preparing to strike that a buyer for Hostess was definitely waiting in the wings.

 

Mr. Hurt said, "I don't want anybody to think that anybody is guaranteeing anyone anything, but we did know that there were people taking a look at this company."

This would be a truly fantastic drama, if people's lives were not at stake. And no, not one former Hostess worker will retain their job at the new company: that much is certain.

As we said, if only people had a basic understanding of how bankruptcy truly worked, and what the real state of the economy was, then Hostess' workers may have had a chance and some amicable comrpomise would have been possible.

Then again, if people in America actually understood economics and simple finance, then the "Ohio outcome", and many others, would have likely been quite different.

Now we can only hope we were not correct about the ultimate outcome too: namely that the US government will effectively hijack the bankruptcy process, and in doing so "bailout" a junk food maker, just so 18k votes can be preserved at the expense of creditors and making yet another mockery of the bankruptcy process, and property rights in the US.

Then again, this is precisely what the Union was likely hoping for all along, because once the government starts bailing everyone out, just where does it draw the line?

 


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Tue, 11/20/2012 - 22:06 | Link to Comment nodhannum
nodhannum's picture

"Maybe now their laid off employees will find some honest, productive work"...Isnt that an oxymoron for a teamster?

Tue, 11/20/2012 - 23:48 | Link to Comment WillyGroper
WillyGroper's picture

LOL. Got a loaf of bread 1.5 yrs old. Still no sign of decay. Just gonna see how long it lasts. 

Took a tour of our local food bank last week viewing their aquaponics. They said do not put bread in your compost heap. It won't decompose. Spot on.

Tue, 11/20/2012 - 20:47 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

May as well do some sort of bailout. The American taxpayer is already on the hook for what, 40% of the pensions?

 

/sarc

Tue, 11/20/2012 - 20:47 | Link to Comment francis_sawyer
francis_sawyer's picture

Biddy Botter Bought Bum Butter... Blah said she Bum Butter's Bitter But it's Blended in my Batter... Biddy Botter Bought Better Butter, Better than the Bitter Butter now her Bitter Batter's Better...

Tue, 11/20/2012 - 22:40 | Link to Comment centerline
centerline's picture

Aww... fuck it.  pass me another shot of whatever your having.  make it double actually.

Tue, 11/20/2012 - 20:49 | Link to Comment Savyindallas
Savyindallas's picture

No big deal  -just give them a bailout! A billion or so should do it - Ben buys $45 billion a month in mortgage backed securites-what's another billion? And let's baiil out the Hockey players- a half villion should get the season started on time. This is not rocket science. Ben is a F**ckin genius.

Tue, 11/20/2012 - 20:51 | Link to Comment GCT
GCT's picture

My take from this is the frigging Union boss held out because behind close doors he was informed another company was going to buy them.  He in turn told certain senior members to get the employees to hold out on the rumor of the buyout.  He screwed his own members on a rumor.  He should be tossed out of his position.  While they bitch about management in the company I bet this dick makkes dam near as much as management in the company for basically making a more fucked up decision then Hostess.

 

Wed, 11/21/2012 - 11:37 | Link to Comment JohnF
JohnF's picture

Actually, the Baker's Union was at the bottom of the totem pole and the Teamsters were the problem: the Teamsters inserted their fingers into distribution and screwed that up to the point where cutting costs elsewhere - like via the Baker's Union's members' salaries - did not make any difference whatsoever. If you can't distribute your product in an efficient, timely, cost-effective way, then it makes no difference what else you improve. The company will fail.

The Banker's Union is hoping that its members will be rehired by whomever acquires the brand names. It may be a forlorn hope, but given the fact that the Teamsters ruined the place, it was probably the least offensive shit sandwich that they could manage out of all the shit sandwichs they were being handed. Thanks, Teamsters! Way to go to help your fellow union members...

Odd that no one here has glommed on to the fact that those involved in the private equity companies are all supporters/financers of President Obama. Every one.

Tue, 11/20/2012 - 20:53 | Link to Comment Catullus
Catullus's picture

Bet those workers are really happy they paid those union dues all those years. Paycheck after paycheck. Money well spent.

For you anti-anti unionists, these unions make it too easy to hate on them. Maybe you can forward the complaint letter the Teamster gold course.

Tue, 11/20/2012 - 20:55 | Link to Comment dark pools of soros
dark pools of soros's picture

nice reporting on the management side of extortion and failures...  I guess the union should just work for free until the economy recovered.

 

Tue, 11/20/2012 - 22:16 | Link to Comment Augustus
Augustus's picture

These workers chose Option 3.

Do nothing for 99 weeks and get a check from YOU.  Along with housing allowance, utility allowance, healthcare for free, and food.  You'll love paying them while they "look for work" on the Obamaphone. 

Tue, 11/20/2012 - 23:42 | Link to Comment Matt
Matt's picture

Does unemployment pay anywhere close to $130,000 per year? If not, there could be some foreclosures as a result of this. I'd say the union rep chose on behalf of the workers.

Wed, 11/21/2012 - 08:36 | Link to Comment BidnessMan
BidnessMan's picture

$130K a year for a truck driver?  There are millions of young kids with college degrees who would be thrilled to do that job for half that.  It is amazing the union game lasted as long as it did.

Tue, 11/20/2012 - 20:55 | Link to Comment stant
stant's picture

old southern saying [so lazy wouldnt work in a pie factory] no pride. fuck the main stream media and the gov and pop culture. youve sealed your own fate.lookout for fake shower heads. or the modern day version of. ie smartphones etc. they will turn the dormant technology against you

Tue, 11/20/2012 - 20:56 | Link to Comment rsnoble
rsnoble's picture

What's even funnier ( I say funny not sad because that's what it is) than Mr. $200wk 8% has probably worked there 20 fucking years and like many of his fellow coworkers probably don't have enough savings to get by on 3 months.

In reality any fucking idiot making that much $ should be able to afford this by retirement:

http://www.ebay.com/itm/Help-Twinkie-Promote-U-S-Economic-Growth-/121021...

Tue, 11/20/2012 - 20:59 | Link to Comment rsnoble
rsnoble's picture

Of course now you'll get to see the other side of the greed equation. Do you think your twinkies are going to get cheaper with non-union drivers at a new company? Most likely not.

Fact of the matter is if you can't make that kind of $ in a free market then your job will always be at risk.

Tue, 11/20/2012 - 20:59 | Link to Comment Seasmoke
Seasmoke's picture

would love to see Trumka on a pitchfork with a twinkie stuffed in his mouth by his union lackeys

Tue, 11/20/2012 - 21:04 | Link to Comment Shell Game
Shell Game's picture

And so it {collapse of union entitlement} begins...

Tue, 11/20/2012 - 21:14 | Link to Comment New_Meat
New_Meat's picture

Unions are People Too.

- Ned

{and the union dronz betta' get used to paying their dues and toe-ing the lines}

{{Unions members who have stood on Yellow Footsteps, well, they might eventually gain another idea, like what the original Unionism was all about.}}

{{{Unions commanded by the likes of Trumka?  They are American?  Really?}}}

Wed, 11/21/2012 - 16:11 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

'pod' ppl ...

Tue, 11/20/2012 - 21:14 | Link to Comment Pancho Villa
Pancho Villa's picture

What I don't understand is why the company management is making the decisions. If the company is bankrupt, shouldn't the creditors be deciding what to do with the company?

I have a sneaking suspicion that all the key assets (trademarks and recipes) will be sold for a pittance to private investors (who may partially consist of current management). Then the company will be restarted sans unions and pension obligations, run largely by the current management.

Tue, 11/20/2012 - 21:52 | Link to Comment knukles
knukles's picture

After GM and Chrysler, thanks exclusively to the Yomomma group of financial and legal wizards, there are no fucking creditor rights in America, anymore.

Tue, 11/20/2012 - 22:41 | Link to Comment centerline
centerline's picture

What did you say about my momma?

Tue, 11/20/2012 - 23:54 | Link to Comment WillyGroper
WillyGroper's picture

Nope. Have a friend that owns the warehouse distribution center they leased in my state. $16K a month is what they were getting. Now zip & notta thing they can do. Stiffed. This is very likely to put them out of business too. Told em to lock the warehouse & get the twinkies for Ebay. Some little piggy will want them. No driver here making $100K.

Wed, 11/21/2012 - 08:31 | Link to Comment BidnessMan
BidnessMan's picture

Creative Destruction, Baby!

Wed, 11/21/2012 - 16:14 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

 

 

 

Pancho Villa:

 

" What I don't understand is why the company management is making the decisions. If the company is bankrupt, shouldn't the creditors be deciding what to do with the company? ... "

 

Ignorance of this magnitude has got to be wearing on Tyler ... I know it's wearing on me.

 

Just WHO do you think the creditors (the PE partners) installed as MANAGEMENT?????????

 

Geeez ...

 

 

 

Tue, 11/20/2012 - 21:15 | Link to Comment euphoria
euphoria's picture

 ' a Hostess driver in Detroit and a member of the International Brotherhood of Teamsters, was in the process of moving to a cheaper condominium on Tuesday, after his union had agreed to an 8% pay cut that he said would shave $200 a week from his income. After Judge Drain cleared Hostess to impose the same new labor terms on the bakers union, they went on strike.'

 

Far out no wonder they went bankrupt. if $200 is 8%, then that driver was pulling $2500 per week or 

$130,000pa.

 


Tue, 11/20/2012 - 21:18 | Link to Comment wsm4826
wsm4826's picture

Atlas shrugged baby!!

Tue, 11/20/2012 - 21:19 | Link to Comment g3h
g3h's picture

Did you hear that?

 

8% cut means $200 less a week.  That means $2500 a week in pay, or $120,000 a year.  Did I get that right?

Tue, 11/20/2012 - 21:27 | Link to Comment dark pools of soros
dark pools of soros's picture

right since their pay should go backwards in an era of dying fiat while management skyrockets more than PMs

"As the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256."

Wed, 11/21/2012 - 07:50 | Link to Comment Urban Redneck
Urban Redneck's picture

Even Huffpo corrected their 300% error THREE DAYS AGO.

http://www.huffingtonpost.com/2012/11/16/gregory-rayburn-raise_n_2147043...

Also adding non-competion incentives to "pay" (as opposed to general severance/golden parachute BS) is misleading, because non-competion pay is most certainly in the interest of the employees keeping their existing job-  

Wed, 11/21/2012 - 01:55 | Link to Comment Central Bankster
Central Bankster's picture

130k

Tue, 11/20/2012 - 21:24 | Link to Comment Seasmoke
Seasmoke's picture

First rule of Union memebership should be, NEVER MENTION HOW MUCH AN 8% CUT WILL COST YOU PER WEEK !!!!!!!!!!!!!!!!

Wed, 11/21/2012 - 16:17 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

Words to economically live (vs 'publicly die' as in bad publicity) by ...

Tue, 11/20/2012 - 21:26 | Link to Comment Tsar Pointless
Tsar Pointless's picture

I am pro-union. I am for the "little" guy.

That said - I'm glad there won't be any more Twinkies and/or Ho-Hos to make the "little" guy even fatter than he is already.

Haven't had a Hostess product in years. Not sad at all to see it go.

Tue, 11/20/2012 - 22:13 | Link to Comment Crtrvlt
Crtrvlt's picture

short term gain for long term pain.  this extends the life of medicare now as people live longer

Tue, 11/20/2012 - 21:27 | Link to Comment Divine Wind
Divine Wind's picture

 

 

 

Moon Pies, Bitchez.

I been sayin it all along but none of you listened.

Now you can suffer Twinkie withdrawals.

Long Moon Pies and Chattanooga Bakeries.

 

 

Wed, 11/21/2012 - 08:28 | Link to Comment BidnessMan
BidnessMan's picture

You forgot the RC Cola.... 

Redneck Nirvana - RC Cola and a Moon Pie

Tue, 11/20/2012 - 21:28 | Link to Comment Rock the Casbah
Rock the Casbah's picture

if only we could get rid of the public sector unions

Tue, 11/20/2012 - 21:32 | Link to Comment Kali
Kali's picture

This shit show is turning into a 2 bowls of popcorn one! (non-GMO, no fat/preservatives,grown-naturally-in-my-garden popcorn)  (Sorry, can't say organic popcorn cuz I do not meet the regulatory paperwork standards of the USDA to be able to claim organic  : )

Tue, 11/20/2012 - 21:33 | Link to Comment gould's fisker
gould's fisker's picture

Two lessons here:

1. In the end (even at the end of the end of the end) somebody (or somebodies) got to pay the piper for the bottom line.

2. We're all just meat popsicles in the bottom line.

Tue, 11/20/2012 - 22:45 | Link to Comment centerline
centerline's picture

1.  The conclusion of course is that there is an end.  The cash already ran out.  Now, we are just waiting for the flow to get jammed somewhere.

2. +1.  Some more than others.

Tue, 11/20/2012 - 21:33 | Link to Comment Joebloinvestor
Joebloinvestor's picture

I expect it to become the poster child for the administrations "eat healthy" stance.

Junk food that is good for you.

Just as big of a taxpayer money pit as "green energy".

Tue, 11/20/2012 - 22:08 | Link to Comment Ginsengbull
Ginsengbull's picture

If they added sedatives or prozac to the twinkies, they could treat the hyperactivity and depression that the treats cause in the first place!

 

Business plan!

Tue, 11/20/2012 - 22:57 | Link to Comment andrewp111
andrewp111's picture

Viagra filled twinkies are a better idea.

Tue, 11/20/2012 - 21:37 | Link to Comment grunk
grunk's picture

Hey Ho-Ho drivers:

You ain't GM. And the election's over.

                       - Barack Obama

 

Tue, 11/20/2012 - 21:37 | Link to Comment Downtoolong
Downtoolong's picture

the buyer will almost certainly be a "financial"

So, the good news is, you’ll now be able to finance your Twinkie purchases with up to 99% leverage in your 401k, buy a tripple vol Twinkie ETF, and swap them for oil, gas, and S&P 500 futures or AAPL shares any time at the going market rate less a 5% exchange fee. Watch out for JPM though. I hear they’re shorting the shit out of the Twinkie market already. As far as they’re concerned, anything physical must die.

Wed, 11/21/2012 - 16:20 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

 

 

 

" the buyer will almost certainly be a "financial" "

 

 

Ya Think?

With revenue of 2.5 bb a year?

 

 

 

Tue, 11/20/2012 - 21:42 | Link to Comment Divine Wind
Divine Wind's picture

 

 

This business will thrive after a PE firm takes over.

I expect much more of this in the coming months.

 

 

Tue, 11/20/2012 - 22:06 | Link to Comment Ginsengbull
Ginsengbull's picture

Tastykake are better than hostess.

Tue, 11/20/2012 - 21:44 | Link to Comment surf0766
surf0766's picture

Next up teachers unions !

Tue, 11/20/2012 - 21:59 | Link to Comment grunk
grunk's picture

The only way you'll kill the teachers' unions is to hyperinflate the shit out of the economy.

That crowd would sooner trash the country than to give up their deal.

Mutually assured destruction.

Tue, 11/20/2012 - 22:05 | Link to Comment Ginsengbull
Ginsengbull's picture

90% of teachers are incorrigable liberal delinquents, with tenure.

 

Hell should have a special place for them.

Tue, 11/20/2012 - 22:17 | Link to Comment R Man J
R Man J's picture

Zombies have no country.

Wed, 11/21/2012 - 08:21 | Link to Comment BidnessMan
BidnessMan's picture

While you are right that the Teacher's Unions would sooner trash the country than to give up their deal, they are going to get trashed anyway.  One example is the state of Florida funded Florida Virtual School - http:www.flvs.net.  200,000+ students already and growing iike gangbusters.  State and local governments can't continue to fund brick and mortar schools, school bus fuel, bloated administrations, and union teacher contracts to supply what is actually publicly funded daycare for kids 5 - 16 while their parents go to work.  The old model of many, many average teachers standing in front of a class delivering boring lectures (Beuhler, Beuhler) is coming to an end.  Deliver content over the internet from one really good teacher to thousands of kids watching a video.  Kahn Academy is another example.  Technology is radically transforming education delivery.  The average teacher will end up like a Hostess truck driver - out of work.  

Wed, 11/21/2012 - 16:22 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

Wow ... ones learns the most intriguing things on ZH ... thanks for posting.

Tue, 11/20/2012 - 21:50 | Link to Comment nah
nah's picture

republicans and unions need better plans

.

till then good niggers tell em' what to do

Tue, 11/20/2012 - 21:50 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

Wonder Bread, two slices with Miracle Whip in the middle.

Those were the days.

Private Equity Won

Hostess Employees Zero.

 

Tue, 11/20/2012 - 22:09 | Link to Comment Augustus
Augustus's picture

Private Equity had invested about $150 Million in this deal.  And you think they will get the money back with profit by going through bankruptcy? 

Smoking all that weed, as a way to save the world, didn't work for you.

Tue, 11/20/2012 - 22:55 | Link to Comment andrewp111
andrewp111's picture

The insiders took their profit up front, as they always do. The bankruptcy court will crush the empty husk that once was Hostess Brands.

Tue, 11/20/2012 - 23:08 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

Yes, they will profit.

Despite our attempts to save the world.

EER! 

 

Tue, 11/20/2012 - 21:58 | Link to Comment nodhannum
nodhannum's picture

Do you want to bet that 110% of them voted for Hussein in this election (in Chicago and Ohio no problem in getting 110% turnout for the Rats).  Fuck 'em!  Let Obama take care of them.

Tue, 11/20/2012 - 21:58 | Link to Comment knukles
knukles's picture

Idea...

Look, they're called Twinkies, right?

Soooooooooooooooooooooooooo....
Make a edible dessert cake with a KY lube filling called....
Twinks

Would save jobs, is politically correct what with the effort by the federal and state governments to employ gay, lesbian, transsexual and sexually confused individuals, openly recruiting such, would qualify as a start-up venture small business which are the ones hire the most people, would appeal to the Nazi Pelousy and Bawney Fwank groups, would be seen as an American Triumph of Equality and freedom throughout the world, and could even use it as an example of What We'll Do To You Mother Fuckers If You Don't Surrender and Just Give Us Your Oil and Gold for the Muzzies.

Case fucking closed.

Tue, 11/20/2012 - 22:20 | Link to Comment R Man J
R Man J's picture

Not a sustainable model. Who will fight for them if the forces of man and nature bust the bubble they live in?

Wed, 11/21/2012 - 08:09 | Link to Comment BidnessMan
BidnessMan's picture

Blew some coffee out my nose - well done!

 

Tue, 11/20/2012 - 22:02 | Link to Comment Ginsengbull
Ginsengbull's picture

Just like they did to the American steel industry.

Tue, 11/20/2012 - 22:04 | Link to Comment Sun and Moon
Sun and Moon's picture

Well obviously we need a new federal agency which would loan people money for junk food purchases. And we need to get academia involved. We need a federally funded research program to develop tastier and deadlier forms of junk food. And let's get NASA involved too. We need to figure out how to manufacture junk food in space. Bernanke should add junk food to his QE 'asset' purchases.

I'm confident that with just $100 billion or $200 billion of government spending, we can have Hostess back on its feet.

This is a matter of national security! We cannot let China or India get ahead of us in junk food tech.

Wed, 11/21/2012 - 08:00 | Link to Comment BidnessMan
BidnessMan's picture

NASA is all tied up with their Muslim outreach program, so no time or resources to boldy put a Ding-Dong where no Ding-Dong has gone before.

Wed, 11/21/2012 - 08:16 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

how are the heads of Unions different from Corzine?? yah I can't think of any either.

Tue, 11/20/2012 - 22:15 | Link to Comment Soylent Green
Soylent Green's picture

Mr. President, we must not allow a junk food gap!

Tue, 11/20/2012 - 22:27 | Link to Comment R Man J
R Man J's picture

Cut them a $5 billion gov't bailout check if they agree to onsite gov't advisors making sure they only make healthy food...advisors could report to Michelle. /sarc

Wait, Does it make less sense than giving billions to an inefficient auto company trying to make electric cars?

Wed, 11/21/2012 - 08:51 | Link to Comment hawk nation
hawk nation's picture

The government knows its all fiat anyways so spend till the credit card gets rejected and see how much in the way of hard assets the regime can aquire 

Tue, 11/20/2012 - 22:21 | Link to Comment notadouche
notadouche's picture

"Cash for Chunkers"

Tue, 11/20/2012 - 22:22 | Link to Comment icanhasbailout
icanhasbailout's picture

So... at what point do the union members track their leadership down and hang their charred corpses off a bridge?

Tue, 11/20/2012 - 22:26 | Link to Comment notadouche
notadouche's picture

Too bad the average union worker doesn't seem to want to believe that their union bosses are just as crooked if not more than any politician they oppose or support.  If union bosses told them to vote for Mickey Mouse and he was a democrat, Mickey Mouse would win the union vote.  Nothing like letting others do you thinking for you then blaming them when it's wrong.  

When you worship at the feet of Hoffa, well then I guess that's all you need to know about an organization.  I wouldn't want my family's future security riding on it.

Tue, 11/20/2012 - 22:36 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

Good.  The huge Bimbo (yes, really) baking concern in Mexico which has already bought portions of other very well known US baking companies will buy them up and make Hostess products using their much cheaper real cane sugar (the high cost of cane sugar in the US is due to tariffs), non-union labor, and with a likely to be cheaper and more efficient distribution chain (couldn't be worse than what the US Hostess had from what I've read).

Meanwhile, anyone paying high prices for Twinkies on eBay is a moron as I said on day one of this fiasco.

Tue, 11/20/2012 - 22:37 | Link to Comment notadouche
notadouche's picture

Uh anyone buying a Twinkie on Ebay for any price.

Wed, 11/21/2012 - 04:40 | Link to Comment lakecity55
lakecity55's picture

Duh, I actually thought everyone was joking about Ebay Twinkies until I saw some news stories. Of course, those could have been faked by Pravda.

I would guess O-Phone has plans for the unions to bankrupt all their companies so he can nationalize them. That would explain Comrade Trumpka's visits to the former white house every other day.

Tue, 11/20/2012 - 22:37 | Link to Comment centerline
centerline's picture

Outstanding call Tyler.  Let's see where this leads.  Another brick in the wall either way though.

Tue, 11/20/2012 - 23:05 | Link to Comment kito
kito's picture

so im to presume that those 18,000 jobs will be replaced by non union fully automated droids?????..............

Tue, 11/20/2012 - 23:09 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

Eric Hoffer, the longshoreman philosopher, said: "Money is freedom."  I would like to paraphrase that to: "Real money is real freedom."  Those two sentences are all that a young person needs to know and realize.  Yet, how few even have the most remote inkling what they mean?

Tue, 11/20/2012 - 23:09 | Link to Comment Phillycheesesteak
Phillycheesesteak's picture

130K per year to drive a truck?!? LOL! Tastykakes are way better anyway. 130K. LOL!

Tue, 11/20/2012 - 23:31 | Link to Comment jballz
jballz's picture

130k to drive a truck.

1.7 mil to drive a company into the fucking ground.

Which one is skilled labor again ?

Wed, 11/21/2012 - 08:48 | Link to Comment hawk nation
hawk nation's picture

Whats the cost of 130k times 18000 workers or the cost of 1.7 mil, you do the math 

Tue, 11/20/2012 - 23:21 | Link to Comment P.T.Bull
P.T.Bull's picture

There seems to be some sort of groupthink that takes these union members from being paid above market wages for their minimally skilled labor and destroy their employers. There was the patco air traffice controllers union with its president who had his 15 minutes of fame before he declared an illegal strike and reagan replaced every member of the union.

The mechanics union at northwest airlines was militant and defiantly refused pay cuts and lost their workers their jobs as well. I knew one airline mechanic, nice enough guy, but once he lost his airline job, he became a janitor at a junior high. I think mechanics were making 6 figures, so what a sad meditation he must have had rearranging cafeteria tables for the next bake sale or girl scout meeting.

And this loathsome sociopath bakery union leader who just destroyed the livelihood of 18,000 workers and ensured that their jobs will be moved to another country--he is probably making millions and will continue to do so after leaving such human wreckage in his wake.

Tue, 11/20/2012 - 23:27 | Link to Comment jballz
jballz's picture

How much did the bank siphon off with their 'loans' provided them via free taxpayer money?

I will bet you any amount right here that interest payments exceeded 8% of workforce salary. No mention of that payment up for negotiation....

Fuck you.

Wed, 11/21/2012 - 02:37 | Link to Comment sethstorm
sethstorm's picture

Reagan listened to a thuggish AG with that kind of bent.  The only things that should happen are the prohibiting any future PATCO-style firings, the mandatory transfer of union contracts across to entities buying up bankrupt organization assets, mandatory disclosure of relationships with unionbusters in any form and/or the amendment to Taft Hartley to count temporary/agency/parttime/etc. workers under the "no closed shop" rule.  In addition, make a specific penalty for this kind of scuttling that causes the pain to follow the assets to any new owners.

In short, take all the toys away from business that allow them to act in bad faith (such as with Hostess, American Airlines, Delta, or any organization that uses strategic bankruptcy) towards workers.  

 

 

 

 

 

 

 

Wed, 11/21/2012 - 07:55 | Link to Comment BidnessMan
BidnessMan's picture

This is a joke, right?

Wed, 11/21/2012 - 08:45 | Link to Comment hawk nation
hawk nation's picture

I only wish it was

Spend some time with a union member or two and they will tell you socialism is a good political system

Thu, 11/22/2012 - 12:45 | Link to Comment sethstorm
sethstorm's picture

I'm not union, wouldn't even dare touching one with a 10' pole.  I just know that the unionbusters won't just stop and do nothing when the supply of unions runs out.

 

Wed, 11/21/2012 - 08:42 | Link to Comment hawk nation
hawk nation's picture

Follow the game plan our illegal government will break the law and buy the company for the unions

This is how socialism works

Wed, 11/21/2012 - 08:42 | Link to Comment hawk nation
hawk nation's picture

Follow the game plan our illegal government will break the law and buy the company for the unions

This is how socialism works

Tue, 11/20/2012 - 23:29 | Link to Comment venturen
venturen's picture

They should have got those bankers from the HP - Autonomy  as it is obvious some good investment banker advice would have turned this thing around!

Wed, 11/21/2012 - 01:50 | Link to Comment willwork4food
willwork4food's picture

Classic managemental conspiracy case.Unbelievable. Almost as unbelievable as Rumsfeld announcing the DOD "lost" 2.3 TRILLION the day b4 911/the world went to hell.

Geewiz, i lose money all the time, what's the big deal?

Wed, 11/21/2012 - 07:53 | Link to Comment BidnessMan
BidnessMan's picture

Agree. What is the big deal about losing money?  Corzine can't find $1.4B he misplaced, but it hasn't bothered him too much.  And many people lose lots of gold and silver in boating accidents.  I read about it all the time on ZH.

Wed, 11/21/2012 - 10:21 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

 

Corzine can't find $1.4B he misplaced, but it hasn't bothered him too much.  "

 

That man should be serving pen time ...

Wed, 11/21/2012 - 11:05 | Link to Comment AynRandFan
AynRandFan's picture

There's no such word as "managemental", for one thing.  Secondly, there is no evidence that the company had sufficient income to support wages -- remember that its product line is a lot of crap.  Oh, and you might notice that the conspirators are going to lose their jobs and being in charge of a company that liquidated probably won't look good on their resumes.

Wed, 11/21/2012 - 00:24 | Link to Comment IamtheREALmario
IamtheREALmario's picture

We have all seen how these things work. A PE company borrows money at 1.25% or less (because they are connected and can) to buy the company and then simultaneously scavanges the balance sheet and charges the company the full load of the debt at a combination of 8% and 15% (for Mezz). The company's management team, who has been given a 15% equity stake, has to savagely cut costs to pay the vig and save the possibility of collecting on their equity when the company is flipped to another PE firm or "strategic sucker" 5 to 7 years hence.

Sometimes the companies make it, but often the weight of high interest debt that the PE firm is using to suck out every vestige of value simply is too heavy and kills the company... as most likely with Hostess. It should be illegal and certainly creates adds no value, only destroying it.

Wed, 11/21/2012 - 11:02 | Link to Comment AynRandFan
AynRandFan's picture

What equity?

Wed, 11/21/2012 - 01:22 | Link to Comment cornflakesdisease
cornflakesdisease's picture

What a bunch of Ding-Dongs . . . . . . . . . . . . . . . . . . . .

Wed, 11/21/2012 - 02:20 | Link to Comment sethstorm
sethstorm's picture

They should be turning on the unionbusters, whose existence is the hallmark of unfree action.  Shine the light on them and not stop until the last unionbuster is gone.

 

Wed, 11/21/2012 - 04:32 | Link to Comment lakecity55
lakecity55's picture

"Mr Hurt" is just another Comrade following orders from the Politburo. Cut him some slack, Comrades!

Backwards!

Wed, 11/21/2012 - 05:42 | Link to Comment slackrabbit
slackrabbit's picture

lol

If thats what you want, this is what you'll get! http://youtu.be/f8Ne9sRcSrM

enjoy

 

Wed, 11/21/2012 - 07:28 | Link to Comment jmcadg
jmcadg's picture

I had some sympathy when I first mis-read it as $200 (a month), but a week, and the Union weren't prepared to drop 8% on a $130k job for a van driver. 

Damn right they should be turning on the Union. However, the payoff to managers in the liquidation is equally obscene.

ONE MORE COMPLETELY INSOLVENT COMPANY. And there are many more out there as we know from TARP.

 

Wed, 11/21/2012 - 10:19 | Link to Comment Ident 7777 economy
Ident 7777 economy's picture

 

 

" Damn right they should be turning on the Union. However, the payoff to managers in the liquidation is equally obscene. "

 

A. Not your money

B. 'Bonuses' are paid to keep talent on-board FOR THE UP-COMING WIND-DOWN.

C. You apprantly have no DRE in this field therefore you render a Peanut Gallery opinion with a zero real-world value and content.

D. Don't be a H8er.


Wed, 11/21/2012 - 10:55 | Link to Comment AynRandFan
AynRandFan's picture

Well said.

Wed, 11/21/2012 - 08:38 | Link to Comment MFLTucson
MFLTucson's picture

Another American Icon destroyed by a greedy union.  Get rid of these fuckin unions and get back to work.  Its better to have a half a loaf of bread rather than none.  No pun intended!!

Wed, 11/21/2012 - 09:51 | Link to Comment Downtoolong
Downtoolong's picture

the buyer will almost certainly be a "financial"

Either that or a drug cartel. Think how much cocaine you could smuggle inside these things?

Hey, I’m just looking for a synergistic solution. Coke paste is similar in texture and consistency to Twinkie filling, and only produces slightly less buzz and damaging health effects to those who are addicted to it.

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