Hostess CEO will "shut down the company" and sell Twinkie name if union votes against them

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Posted: 9/22/2012 7:46:36 AM EDT

http://video.foxbusiness.com/v/1841126376001/ceo-will-sell-twinkie-name-if-union-votes-against-us/

Hostess CEO Gregory Rayburn will shut the company down if a vote by the Teamsters Union goes against it.

Posted: 9/22/2012 7:47:56 AM EDT

[#1]

I thought they had already decided to quit making twinkies?

Posted: 9/22/2012 7:47:56 AM EDT

[#2]

NOOOOOOOOOOOOOO

I NEED MY SNACKY CAKES

Posted: 9/22/2012 7:49:19 AM EDT

[#3]

Nevermind.

It looks like the union approved the cuts.

http://www.kalb.com/story/19549774/union-members-approve-hostess-cuts

Posted: 9/22/2012 7:54:50 AM EDT

[#4]

Greedy fucks

Posted: 9/22/2012 7:55:00 AM EDT

[#5]

I remember Twinkies being a great snack but I admit I haven't eaten one in over 30 years.

Posted: 9/22/2012 7:57:08 AM EDT

[#6]

they took the offer......

Posted: 9/22/2012 7:58:20 AM EDT

[#7]

Quoted:
they took the offer......

well fuck yeah they did

Posted: 9/22/2012 7:59:28 AM EDT

[#8]

Quoted:
Greedy fucks

Posted: 9/22/2012 8:02:05 AM EDT

[#9]

don't be f@ckin' with my survival twinkies...

Posted: 9/22/2012 8:04:04 AM EDT

[#10]

The delivery drivers used to make an obscene amount of money stocking shelves.

Posted: 9/22/2012 8:04:37 AM EDT

[#11]

Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

Posted: 9/22/2012 8:06:23 AM EDT

[#12]

Quoted:

Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

Posted: 9/22/2012 8:12:57 AM EDT

[#13]

The union now owns 25% of the company.....they're doomed.

Posted: 9/22/2012 8:14:03 AM EDT

[#14]

Quoted:
The union now owns 25% of the company.....they're doomed.

FUCK YOU UNION

I WANT MY SNACK CAKES AND WHATNOT FOR LESS MONEY

Posted: 9/22/2012 8:15:24 AM EDT

[#15]

Teamsters union in a Twinkie factory. Seems about right.

Posted: 9/22/2012 8:16:16 AM EDT

[#16]

Twinkies have an expiration date!

Posted: 9/22/2012 8:18:36 AM EDT

[#17]

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

Now they have nothing. They win, I guess.

Posted: 9/22/2012 8:21:29 AM EDT

[#18]

Panic buy on twinkies is about to kick off. Don't mess with my twinkies Mutha humper

Posted: 9/22/2012 8:23:39 AM EDT

[#19]

can yo believe they have to pay the pensions of people from other companies that went out of buisness??crazy shit.really they just kicked the can down the road the end is still coming

Posted: 9/22/2012 8:28:55 AM EDT

[#20]

Quoted:

can yo believe they have to pay the pensions of people from other companies that went out of buisness??crazy shit.really they just kicked the can down the road the end is still coming

Huh? Who has to pay the pensions?

Pensions are (usually) set up in a fund and managed by a separate firm for non-union companies that still offer pensions. My grandfather still gets a pension check from his job in a steal mill that closed up 30 years ago

Union pension funds can get larger returns than a standard fund, by lending money to mobsters and buying politicians

Speed

Posted: 9/22/2012 8:31:04 AM EDT

[#21]

good for them.

Posted: 9/22/2012 8:31:57 AM EDT

[#22]

I guess they didn't want another Eastern Airlines.

Smart.

Posted: 9/22/2012 8:36:26 AM EDT

[#23]

Quoted:
I thought they had already decided to quit making twinkies?

I heard that too, last year. They were supposed to be going out of business. I bought a whole shit-load of chocolate Donettes.

Posted: 9/22/2012 8:39:09 AM EDT

[#24]

Quoted:

Quoted:

Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

Posted: 9/22/2012 8:44:06 AM EDT

[#25]

Fuck unions... Fuck non-unions....Hell fuck jobs & working! It's for suckas.

Welfare is where it's at.

Posted: 9/22/2012 8:49:24 AM EDT

[#26]

Perfect reason to move a business to Ohio.
Starve out the liberal machines that run costs of living up.

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

Posted: 9/22/2012 8:56:20 AM EDT

[#27]

Quoted:

I guess they didn't want another Eastern Airlines.

Smart.

Ya but...without that union there to fight for them, they would be more like Blue Star Airlines...right?

Speed

Posted: 9/22/2012 8:58:21 AM EDT

[#28]

Quoted:

Perfect reason to move a business to Ohio.

Starve out the liberal machines that run costs of living up.

Quoted:

Quoted:

Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

They would have the exact same opportunity to go union here as they do in NYC.

I just can't understand the argument of closing the doors to avoid the union. Why would you commit 'company suicide' to prevent a union shop? Is there any advantage? Wouldn't it cost millions to set up shop in another state or country?

To me it seems to take the same form as union greed.

Posted: 9/22/2012 9:02:04 AM EDT

[#29]

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

Who said anything about living rich? We are talking about unskilled labor on the cookie line, not engineers or trades. The median household (not individual, but household) income in NYC is $48,631. Average folks in the five boroughs are NOT making six figures let alone high fives.

Posted: 9/22/2012 9:03:04 AM EDT

[#30]

Quoted:
Fuck unions... Fuck non-unions....Hell fuck jobs & working! It's for suckas.

Welfare is where it's at.

If welfare recipients ever unionize that will be the most powerful union in the world.

Posted: 9/22/2012 9:04:31 AM EDT

[#31]

Quoted:

Quoted:

Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

Who said anything about living rich? We are talking about unskilled labor on the cookie line, not engineers or trades. The median household (not individual, but household) income in NYC is $48,631. Average folks in the five boroughs are NOT making six figures let alone high fives.

Yep. Fuck the unions

Posted: 9/22/2012 9:06:40 AM EDT

[#32]

Quoted:

Quoted:

Perfect reason to move a business to Ohio.

Starve out the liberal machines that run costs of living up.

Quoted:

Quoted:

Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

They would have the exact same opportunity to go union here as they do in NYC.

I just can't understand the argument of closing the doors to avoid the union. Why would you commit 'company suicide' to prevent a union shop? Is there any advantage? Wouldn't it cost millions to set up shop in another state or country?

To me it seems to take the same form as union greed.

People threaten to close their companies because they feel bullied. These are businessmen; they know if they get pushed too much and give up too much, it;s only a matter of time before they lose it all, so they call their bluff and beat them to the punchline...why go broke trying to keep a sinkinh ship afloat when you can take your toys and go home now?

The cost of relocating to an area with a lower tax burden or no union can often be recuperated in a matter of years. Westinghouse just did this in Pittsburgh; it was cheaper to build a gigantic new facility in the next county over than to keep meeting the ever increasing tax demands of Allegheny County (Pittsburgh).

Speed

Posted: 9/22/2012 9:12:47 AM EDT

[#33]

Quoted:

Quoted:
Perfect reason to move a business to Ohio.
Starve out the liberal machines that run costs of living up.

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

They would have the exact same opportunity to go union here as they do in NYC.

I just can't understand the argument of closing the doors to avoid the union. Why would you commit 'company suicide' to prevent a union shop? Is there any advantage? SNIP

Did you even watch the video? Hostess is losing money and has to choose between continuing business as usual or close up shop and recover whatever value is left in the brand by selling it off. What person in their right mind would continue to operate at a loss?

Wouldn't it cost millions to set up shop in another state or country?

They aren't talking about doing that. They are talking about selling the brand to another company who can restart operations with a more rational cost structure. Yes it will cost millions to build a new operation but based on my own experience in manufacturing, the costs of buildings and equipment is often easily eclipsed by labor costs. It's not unusual to have $10 million annually in labor in $1 million annually worth of building and equipment. If you can cut your labor costs 10%-20% by moving, you can justify the move. If you are losing money, there's no debate.

To me it seems to take the same form as union greed.

Greed has nothing to do with this. First, we are talking about a company who has already gone bankrupt once and is at risk of going belly up. Second, a company has every right to make rational business decisions for themselves just like workers have that same right. You wouldn't work for an employer that didn't even pay you enough to cover your gas to get to work anymore than your employer is going is going to pay you more than what he can sell the product of your labor for. The latter is the EXACT circumstance being described in the video. Every one in a free market seeks the best deal for themselves and where those interests shall meet is where transactions (including employment) take place.

Posted: 9/22/2012 9:13:24 AM EDT

[#34]

Quoted:

Quoted:

Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

Who said anything about living rich? We are talking about unskilled labor on the cookie line, not engineers or trades. The median household (not individual, but household) income in NYC is $48,631. Average folks in the five boroughs are NOT making six figures let alone high fives.

Are you mad that they are earning $6500 a year above the average income or something?

What's your point?

Posted: 9/22/2012 9:14:36 AM EDT

[#35]

The vote already happened with typical union scum results.

Hostess's Second-Largest Union Rejects Labor Deal

Late last week, the International Brotherhood of Teamsters, which represents 7,500 of Hostess's 19,000 employees, voted narrowly to accept the proposed agreement, but the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union rejected it by 92%.

In response, Hostess said it planned to ask the bankruptcy court to impose the Teamsters-approved changes on the bakers' union members.

Posted: 9/22/2012 9:16:36 AM EDT

[#36]

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

Who said anything about living rich? We are talking about unskilled labor on the cookie line, not engineers or trades. The median household (not individual, but household) income in NYC is $48,631. Average folks in the five boroughs are NOT making six figures let alone high fives.

Are you mad that they are earning $6500 a year above the average income or something?

What's your point?

Not mad at all. More power to them if they can make it work. My point is that this isn't about cost of living as you suggest and the likelihood of that wage being sustainable for a cookie line operator is very low. This of course, is evidenced by the fact that their employer went out of business and they lost their jobs. I'm just connecting the dots for you.

Posted: 9/22/2012 9:17:53 AM EDT

[#37]

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

Its for the cause man.

Posted: 9/22/2012 9:18:33 AM EDT

[#38]

Quoted:

Quoted:
Perfect reason to move a business to Ohio.
Starve out the liberal machines that run costs of living up.

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

They would have the exact same opportunity to go union here as they do in NYC.

I just can't understand the argument of closing the doors to avoid the union. Why would you commit 'company suicide' to prevent a union shop? Is there any advantage? Wouldn't it cost millions to set up shop in another state or country?

To me it seems to take the same form as union greed.

Maybe because the person who built and runs the company is sick of union leeches demanding more and more under threat of strike, from the company that employs them? Most unions seem to have no interest in actually benefiting the companies and industries they work in, only in how many benefits they can wring out of their employers without killing them.

Posted: 9/22/2012 9:20:34 AM EDT

[#39]

$52 Million yearly pension contributions to individuals who were never employed by Hostess?

Posted: 9/22/2012 9:24:59 AM EDT

[#40]

http://www.teamster.org/content/hostess-teamsters-vote-accept-companys-final-offer

It's all managements fault. <––––––-sarsasm.

Posted: 9/22/2012 9:28:16 AM EDT

[#41]

I had a co-worker from Mother's Cookies..... union shop was bankrupting the place..... they were told "10% paycut or everyone loses their jobs"

Frog, scorpion, etc etc....

Everyone lost their jobs, Kellogg's now owns them.

http://www.dlisted.com/node/28726

Posted: 9/22/2012 9:31:08 AM EDT

[#42]

Quoted:
I thought they had already decided to quit making twinkies?

Obama should really sign an executive order outlawing twinkies anyways...they're so bad for you.

Posted: 9/22/2012 9:31:24 AM EDT

[#43]

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

What does the cost of living for a particular area have to do with the value of unskilled labor done in that area?

Posted: 9/22/2012 9:35:57 AM EDT

[#44]

Quoted:

Quoted:
Perfect reason to move a business to Ohio.
Starve out the liberal machines that run costs of living up.

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

They would have the exact same opportunity to go union here as they do in NYC.

I just can't understand the argument of closing the doors to avoid the union. Why would you commit 'company suicide' to prevent a union shop? Is there any advantage? Wouldn't it cost millions to set up shop in another state or country?

To me it seems to take the same form as union greed.

That's why they should have set up shop in Idaho.

Posted: 9/22/2012 9:38:11 AM EDT

[#45]

Quoted:

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

The people on the cookie line were making over $55k a year and had like 7 weeks vacation. And they wanted more. Only a fool would run a business up there.

So you think making $55k in NYC is living rich or something?

You need to look at the cost of living vs what people earn.

What does the cost of living for a particular area have to do with the value of unskilled labor done in that area?

Also a valid point, I agree 100%. Joe Schmoe at the Walmart in Bumbfuck, Kansas doesn't give a shit how much housing costs in NYC when he's in the cookie aisle trying to decide which brand of cookies to buy.

Union folks don't see the connection between cost, pricing, and competitiveness. They figure that their employer has an endless vault full of money and it's simply a matter of figuring out how to wrestle it from his greedy 1%er hands.

Posted: 9/22/2012 9:38:53 AM EDT

[#46]

All unions should be shut-down.

Every single damned one of them.

Posted: 9/22/2012 9:44:14 AM EDT

[#47]

Quoted:

Quoted:
I thought they had already decided to quit making twinkies?

Obama should really sign an executive order outlawing twinkies anyways...they're so bad for you.

PS - GOnna buy me some twinkies on my way to work.,,

Posted: 9/22/2012 10:52:01 AM EDT

[#48]

Quoted:
Same thing happened with Stella D'oro cookies.

They were manufacturing in NYC with a union work force. They couldn't cut costs because of location and union rules, so they ended up closing and selling the name and equipment to another company who started up again in Ohio. The (now unemployed) idiots who used to work there were celebrating their "victory" of running the company out of business. Never mind it took their own jobs with them, and the cookies are still being made.

Reminds me of the "victory" of shutting down Eastern Airlines.