Union Wins! Hostess Out of Business

[Babagounj]

Petition wants Obama to save Twinkies
A new White House petition wants President Obama to nationalize the "Twinkie industry," saving the popular junk food from possible extinction.
"We the undersigned, hereby request Barack Obama to immediately Nationalize the Twinkie industry and prevent our nation from losing her sweet creamy center," a petition on the White House "We the People" website requests.

 

[NonyaBiznes]

Its called BANKRUPTCY...the reason a company wanted to lower pay is because they had no money...just shows ignorance on behalf of their union workers...As far as eliminating healthcare, UPS is gonna be doing that as well. I know its hard for you to understand, but a business that cannot make money does not stay open. So in this case it was the American Worker who hurt the plant and shut it down. Hostess is not in the business of handouts, thats Obama!

Please expound how President Obama is in the business of "handouts". I've heard this "soundbite", but never any clarification from those that spew it.

 

[UpstateNYUPSer(Ret)]

Please expound how President Obama is in the business of "handouts". I've heard this "soundbite", but never any clarification from those that spew it.

Google "Solyndra".

 

[UnconTROLLed]

Hostess Brands, the company better known as the maker of Butternut, Ding Dongs, Dolly Madison, Drake’s, Home Pride, Ho Hos, Hostess, Merita, Nature’s Pride, and of course Wonder Bread and Twinkies .

Teamsters Cross Picket Line, Fail to Save Twinkie


Teamsters union ignored a strike by a fellow union and crossed the picket-line in a bid to save the company. The Teamsters, not exactly a shrinking violet, got a look at the company's books and realized the dire financial situation Hostess was in. They even implored the Bakers' Union, which called a strike, to accept wage concessions and get back to work. Alas, they didn't, and now the company faces liquidation. The Bakers' Union ultimately accomplished what mere physics couldn't; they pushed the Twinkie past its sell-by date.

Hostess said its wind down would mean the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores in the United States.
The Bakers' Union only represented around 30% of the company's total workforce. All other workers had already accepted wage concessions and changes to the company's work-rules. 70% of the workforce accepted pay cuts of around 4% over five years. Given the general state of the economy, that seems very modest and would have allowed the company to continue operating. But, the Bakers' Union instead went on strike, without even offering counter-demands. As a result, they have forced 100% pay cuts on all employees.

? Who will save this company ? Who should ? bhos or Bain ?

There should be no cupcake bailouts, but then again blaming unionism for business woes is a side-argument to larger issues and a weak stance.

 

[wkmac]

There should be no cupcake bailouts, but then again blaming unionism for business woes is a side-argument to larger issues and a weak stance.

Yeah, where are the arguments that Hostess should get a bailout in order to save it to protect the larger economy from collapse?

Agree with your points.

 

[UnconTROLLed]

Yeah, where are the arguments that Hostess should get a bailout in order to save it to protect the larger economy from collapse?

Agree with your points.

I don't know but given overall path we are on, no bailout seems too ridiculous...'

One of my thoughts had to do with food /soda bans, where does it end and how are these factors playing into their market share? (also, given the alarming obesity rates/diabetes/ etc etc )

Hostess is a fat people co. and if the people can't ignore it, the gov't will come in and force it ...maybe a little player, there? Maybe in a back ground sense concerning the above, but all the little things do come to light.

 

[UnconTROLLed]

GM turned around by investing in technology and better vehicles, and the bailout (to my knowledge) actually made the government money. Now, I don't suggest that a broken clock is right for the right reasons which is ultimately the main issue...however, how would markets and economies be saved bailing out Hostess? Fat-free twinkies spurring growth? hahha.

The idea was saving jobs -specifically union jobs.

 

[Babagounj]

Ha,ha,ha

The gov't is still losing big bucks on the GM bailout.

But think of all the "saved" jobs a twinkie bailout would develop .
Plus if they failed again , the gov't could keep the bakeries going just to provide free food to the jails.

 

[moreluck]

No more food stamps.........Ding-dongs and Twinkies instead!!!!!

 

[UnconTROLLed]

Ha,ha,ha

The gov't is still losing big bucks on the GM bailout.

But think of all the "saved" jobs a twinkie bailout would develop .
Plus if they failed again , the gov't could keep the bakeries going just to provide free food to the jails.

The GM bailout actually paid back the borrowed money and added 2 billion? profit back to the gov't. That was from two months ago on WBZ news, so I'd like to see your evidence otherwise. I am not an advocate for, just 'sayin. The blind mouse can find "THE CHEESE"

 

[moreluck]

The GM bailout actually paid back the borrowed money and added 2 billion? profit back to the gov't. That was from two months ago on WBZ news, so I'd like to see your evidence otherwise. I am not an advocate for, just 'sayin. The blind mouse can find "THE CHEESE"

“How The Hell Did GM Pay Back Its Loans “in Full And Ahead of Schedule”? Well, It Didn’t.”

Sure about that payback???

GM's Phony Bailout Payback - Reason.com

 

[DS]

Hostess is doing well here in Canada mostly due to the Wonderbread line of bread products.

This is on oldie.

HOWDY DOODY HOSTESS TWINKIES COMMERCIAL 1950s - YouTube

 

[MenInBrown]

The GM bailout actually paid back the borrowed money and added 2 billion? profit back to the gov't. That was from two months ago on WBZ news, so I'd like to see your evidence otherwise. I am not an advocate for, just 'sayin. The blind mouse can find "THE CHEESE"

and GMAC still owes how many billions?

 

[wkmac]

and GMAC still owes how many billions?

The floor is yours. Tell us.

 

[MenInBrown]

The floor is yours. Tell us.

Over 10 billion...next time raise your hand and wait for me to call on you.

 

[Catatonic]

Over 10 billion...next time raise your hand and wait for me to call on you.

That sounds low ...

 

[wkmac]

That sounds low ...

I like it when he goes low.

 

[UnconTROLLed]

“How The Hell Did GM Pay Back Its Loans “in Full And Ahead of Schedule”? Well, It Didn’t.”

Sure about that payback???

GM's Phony Bailout Payback - Reason.com

Yeah, cuz articles from three years ago are still relevant. No evidence yet..

 

[moreluck]

Yeah, cuz articles from three years ago are still relevant. No evidence yet..

Artcles from 3 years ago explain the story, but here's one from a few months ago.......

go to bottom 'About That Bailout IOU"

GM Posts Record Earnings: Is It Ready to Repay Bailout?

By John Rosevear, The Motley Fool
Posted 9:30AM 02/17/12 | AOL OriginalPosted under: Company News, Ford Motor Co, General Motors, Autos

Last year was one for the record books at General Motors (GM): 2011 was the most profitable year in the company's 103-year history.

Just a couple of years after the company's collapse into bankruptcy, GM's full-year income of $7.6 billion was remarkable. GM North America and GM International Operations (which includes China and Australia) posted solid profits after a year of increased sales that enabled GM to surpass Toyota (TM) to reclaim the title of global auto sales leader.

Also enhancing GM's bottom line was the company's improved pricing power. The company's much-improved recent products, like its acclaimed Chevy Cruze compact, can be sold at higher prices with fewer "cash back" incentives, leading to higher profits per sale.

Thanks in large part to the $50 billion government-assisted restructuring it received, and good management afterward, GM's U.S. operation is in good shape.

So now that GM is profitable, will it pay back Washington? Well, that depends on Europe.

Overseas Troubles Overshadow Strength at Home

In Europe, GM's subsidiary Adam Opel AG is beset by exactly the kinds of problems that troubled GM at home before the bailout. Too many factories, over-generous union contracts, and an infrastructure that is just too big and expensive have all contributed to more than a decade of losses.


GM had hoped to break even in Europe in 2011, and was doing well earlier in the year, but economic problems on the Continent have created a drag on new-car sales that pushed Opel back into the red. GM has dithered over Opel for years, but with the arrival of CEO Dan Akerson, who joined GM in 2009 and took charge after the bankruptcy, big changes are coming.

Akerson replaced the leaders of GM Europe late last year and put several of his most-trusted lieutenants on Opel's board, including his right-hand man, Vice Chairman Steve Girsky. Girsky's assignment was to come up with a plan to fix Opel once and for all -- to fix its structure so that it could make profits even during lousy economic times, like now.

Executives said on Thursday that that plan would be announced in a few weeks. But everyone involved -- management, the unions, and the local governments in Europe -- all agree that big changes are necessary.

If successful, GM will be able to remove a huge thorn from its side and be set up for even bigger profits as economies improve around the world.

About That Bailout IOU

Technically speaking, GM already has "paid back" the bailout -- some of it in cash, the rest with GM stock. The problem is this: If the government sold its stock at current prices, it wouldn't quite recoup what it lent to GM during the economic crisis.

That's what commentators mean when they say that GM hasn't yet "paid back" taxpayers. In fact, the company has done exactly what it promised. But the stock price hasn't cooperated -- and that reflects badly on GM, particularly in comparison with rival Ford (friend), which chose to borrow money privately instead of taking a government bailout.

Akerson, a former Navy officer, has said that he sees the task of steering GM back to glory as his patriotic duty. There's no question that he'd like to see the government make money on its investment in General Motors. His best bet for making that happen is to take actions that will raise the share price. Getting GM's U.S. operation straightened out was a good start. Now it's on to Europe.

Motley Fool contributor John Rosevear owns shares of General Motors and Ford. The Motley Fool owns shares of Ford. Motley Fool newsletter services have recommended buying shares of Ford and General Motors, as well as creating a synthetic long position in Ford.

 

[moreluck]

In related news, Michael Moore has been placed on suicide watch after learning of Twinkie’s demise.