Former Hostess workers scramble after...

Former Hostess workers scramble after job loss

There are 15 comments on the The Hamilton Spectator story from Jan 18, 2013, titled Former Hostess workers scramble after job loss. In it, The Hamilton Spectator reports that:

Losing a job just weeks before Christmas was a hard blow for Rick Marzuco and his family.

Join the discussion below, or Read more at The Hamilton Spectator.

walker

Granite City, IL

#1 Jan 19, 2013
Why would Hostess be concerned about helping you l get a new job?You certainly didn't worry about their business.
hmmmmm

Arnold, MO

#2 Jan 19, 2013
the union this man belonged to had voted in favor of the contract. the bakers are the ones who voted no. he was a teamster driver.
walker

Granite City, IL

#3 Jan 19, 2013
Newser)– What killed Hostess? Don't believe the people blaming private equity or America's changing tastes. Labor was the real culprit, writes Holman Jenkins at the Wall Street Journal, but don't blame the striking bakery union, which is, at worst, "guilty of perfectly justifiable attempted homicide." No, the real problem was the Teamsters. The bakers wouldn't budge because, as they "rightly saw it, they were being asked once more to prop up Teamster jobs." Hostess' bakery operations were actually pretty efficient. But its distribution was a mess.

Drivers weren't allowed to help load or unload shipments. Wonder Bread and Twinkies had to travel in separate trucks. The company was, it said in court, "unable to profit from many of their existing delivery stops," or to enter juicy markets like vending machines or movie theaters. Bakery jobs, meanwhile, "have become crummy-paying thanks to previous givebacks," and Hostess already planned bakery closures. So bakers decided to let the company liquidate and try their luck with new owners—even if it meant "throwing their Teamster brethren under a bus."


e so.
haaahaaahaaa

Saint Louis, MO

#4 Jan 20, 2013
walker wrote:
Newser)– What killed Hostess? Don't believe the people blaming private equity or America's changing tastes. Labor was the real culprit, writes Holman Jenkins at the Wall Street Journal, but don't blame the striking bakery union, which is, at worst, "guilty of perfectly justifiable attempted homicide." No, the real problem was the Teamsters. The bakers wouldn't budge because, as they "rightly saw it, they were being asked once more to prop up Teamster jobs." Hostess' bakery operations were actually pretty efficient. But its distribution was a mess.
Drivers weren't allowed to help load or unload shipments. Wonder Bread and Twinkies had to travel in separate trucks. The company was, it said in court, "unable to profit from many of their existing delivery stops," or to enter juicy markets like vending machines or movie theaters. Bakery jobs, meanwhile, "have become crummy-paying thanks to previous givebacks," and Hostess already planned bakery closures. So bakers decided to let the company liquidate and try their luck with new owners—even if it meant "throwing their Teamster brethren under a bus."
e so.
piss.off. you piece of "im so happy to work for nothing" piece of S##T!!
walker

Granite City, IL

#5 Jan 20, 2013
haaahaaahaaa wrote:
<quoted text>
piss.off. you piece of "im so happy to work for nothing" piece of S##T!!
Thats a brilliant response,I never looked at it that way.
Brian

Glen Carbon, IL

#6 Jan 20, 2013
walker wrote:
Newser)– What killed Hostess? Don't believe the people blaming private equity or America's changing tastes. Labor was the real culprit, writes Holman Jenkins at the Wall Street Journal, but don't blame the striking bakery union, which is, at worst, "guilty of perfectly justifiable attempted homicide." No, the real problem was the Teamsters. The bakers wouldn't budge because, as they "rightly saw it, they were being asked once more to prop up Teamster jobs." Hostess' bakery operations were actually pretty efficient. But its distribution was a mess.
Drivers weren't allowed to help load or unload shipments. Wonder Bread and Twinkies had to travel in separate trucks. The company was, it said in court, "unable to profit from many of their existing delivery stops," or to enter juicy markets like vending machines or movie theaters. Bakery jobs, meanwhile, "have become crummy-paying thanks to previous givebacks," and Hostess already planned bakery closures. So bakers decided to let the company liquidate and try their luck with new owners—even if it meant "throwing their Teamster brethren under a bus."
e so.
That's the way it is these days. The union officials embezzle, steal and cheat but the dumb oafs on the factry floors believe them as they continue sending in their dues.
We need good workshops again so when the union dodo thinks they can just loaf out a plant closure on welfare and unemployment they would find that its back to work for them at a reduced pay.
That would be a step in fixing the problem

Since: Oct 11

Location hidden

#7 Jan 20, 2013
hmmmmm wrote:
the union this man belonged to had voted in favor of the contract. the bakers are the ones who voted no. he was a teamster driver.
Hostess was in trouble with venture capitalists who bought the company. This was done like Romney did it for years. They stole the pension fund of the workers and closed the company. It was never about unions. It was about stealing the hostess workers pension funds.
Brian

Glen Carbon, IL

#8 Jan 20, 2013
nancy29346 wrote:
<quoted text>
Hostess was in trouble with venture capitalists who bought the company. This was done like Romney did it for years. They stole the pension fund of the workers and closed the company. It was never about unions. It was about stealing the hostess workers pension funds.
Totally off base. The company was on a tightrope because of the demands from unskilled unionized workers. Bakery used to be skilled, but now its just common fcatory work.
None the less Flowers, a non union company, will be buying many of the facilities and life will go on. There will be lower wages inside those bakeries and the union presidents etc will not get their cuts.Be thankful Bimbo didn't buy the trade name and move all manufacturing to Mexico

Since: Oct 11

Location hidden

#10 Jan 22, 2013
Brian wrote:
<quoted text>Totally off base. The company was on a tightrope because of the demands from unskilled unionized workers. Bakery used to be skilled, but now its just common fcatory work.
None the less Flowers, a non union company, will be buying many of the facilities and life will go on. There will be lower wages inside those bakeries and the union presidents etc will not get their cuts.Be thankful Bimbo didn't buy the trade name and move all manufacturing to Mexico
Totally FOX entertainment lies.

http://www.dailykos.com/story/2012/11/18/1162... #

The purpose of this diary is to explore the economic and financial background of those pillaging and burning a (formerly) great American brand. Hostess Bakery created several American comfort foods including Ding Dongs, Ho Hos, Wonderbread, Suzy Qs, Dolly Madison Zingers, and Drake's Ring Dings. The fact that Hostess Bakery was the 2012 version of 2008's General Motors and Ford Motor Company is beside the point of this diary. However, let me note that Ding Dongs, Ho Hos, etc. do not mesh well with diet-conscious cuisine. Since moving to California ten years ago, I am not sure I have had more than two or three doughnuts during this period. Carbs and sugar and calories, oh, my!

Nevertheless, Hostess is now a great American tragedy, in no small part related to venture capitalists and corporate raider. This diary is the story of what has become normal in American business history and unfettered capitalism since 1865 and the end of the American Civil War. The robber barons came to the fore and such American luminaries as Cornelius Vanderbilt, John D. Rockefeller, and others earned their fortunes at the misfortune of others. Sometimes, this misfortune was facilitated by the very people who later benefited from the 'distressed events.'

More recently, Michael Milken, Carl Icahn, Monarch Alternative Capital LP, and Silver Point Capital LP have taken up the mantle of the robber baron. The venture capitalists see opportunity in the recession and swoop in to take advantage.

For an interesting filmaic history of the robber barons, the History Channel now has some fantastic historical background on the rise of the robber barons in 'The Men Who Shaped America.' Modern day robber barons and their admirers provide commentary (think Donald Trump, GE's former-CEO Jack Welch, Time-Warner's former-CEO Richard Dean Parsons, CNBC Mad Money's Jim Kramer, etc.).

----------

Not the first time robber barons have done this.

Since: Oct 11

Location hidden

#11 Jan 22, 2013
http://www.politicususa.com/romney-vulture-ca...

Hostess Brands’ demise is a recurring story that should be well-known after Americans learned the predatory private equity tactics of Bain Capital during Willard Romney’s failed run for the White House. In fact, union president Richard Trumka pointed out that Wall Street investors that own Hostess were disinterested in the company’s success and cited similarities to the situation of Bain Capital and KB Toys in 2000. As a reminder, Bain Capital’s scheme was leveraging companies with crushing debt, cutting workers’ wages and benefits, and when the company can no longer repay their loans they go into bankruptcy, often more than once. Hostess is in bankruptcy for the second time since 2009 and a major factor in their inability to succeed is that over the past eight years, they were owned by Wall Street investors that were restructuring experts, managers from other non-baking food companies, and now a liquidation specialist. There was no plan for Hostess to succeed and it appears that was the objective all along.

Hostess’s failure was compounded by having six CEO’s in 8 years who had no experience in the bread or cake baking industry, and despite their financial woes, the company’s CEO got a 300% salary increase from $750,000 to $2,250,000, and other top executives received raises worth hundreds-of-thousands of dollars; all while the company was struggling. Instead of acknowledging the lack of competent leadership and exorbitant executive salaries as contributing to the company’s decision to close its doors, CEO Gregory Rayburn issued a statement saying,“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike.” However, Rayburn and Hostess management claimed the strike would be responsible for closing plants even before there was a strike, and they had made plans to close plants whether or not workers accepted the Draconian wage and benefit cuts the company offered, or if they went on strike.

Hostess workers previously made numerous concessions to keep the company afloat, but they were not enough for the company’s management so they stopped making contractually-obligated contributions to employee’s pensions to save money. The employees stayed on the job until management offered a new contract cutting wages and benefits an extra 27 – 32 percent that prompted employees to strike and thus become scapegoats for Hostess’s demise. What Hostess failed to tell the public is that plans were in the works to close plants months before offering to slash workers’ wages. According to the company’s 1113 bankruptcy court filing earlier this year, they planned to close at least nine bakeries as part of its reorganization plan in addition to the three bakeries that were to be closed as a result of the company’s planned sale of its Merita division. In a November article, St. Louis Mayor Francis Slay said,“I was told months ago they were planning on closing the site in St. Louis, and there was no indication at that time it had anything to do with the strike the workers were waging.”

Since: Oct 11

Location hidden

#12 Jan 22, 2013
You need to learn who the bad guys are so you don't put them back in office.
Brian

Glen Carbon, IL

#13 Jan 22, 2013
You need to realize that the days of high wages for unskilled work are over.
Robotics are replacing the overpaid underworked class at a record pace. The choice is to take a pay cut or be replaced. Like it or not...that's the way its gonna be

http://globaleconomicanalysis.blogspot.com/20...
Dirksen

East Alton, IL

#14 Jan 22, 2013
Brian wrote:
You need to realize that the days of high wages for unskilled work are over.
Robotics are replacing the overpaid underworked class at a record pace. The choice is to take a pay cut or be replaced. Like it or not...that's the way its gonna be
http://globaleconomicanalysis.blogspot.com/20...
Back to a Dickensian era cast system.

More Sir?
MOOORRRE? You want More?
Yes, Please.
Bwahaha......
I guess those unskilled workers (Plebians) will just have to take whatever they get.
Brian

Glen Carbon, IL

#15 Jan 22, 2013
Dirksen wrote:
<quoted text>
Back to a Dickensian era cast system.
More Sir?
MOOORRRE? You want More?
Yes, Please.
Bwahaha......
I guess those unskilled workers (Plebians) will just have to take whatever they get.
Well they could utilize the excellent educational facilities availiable to them to become more skilled and valuable in the new economy.
That of course would require effort which seems to be in short supply these days in certain groups.
Dirksen

East Alton, IL

#17 Jan 24, 2013
Brian wrote:
<quoted text>Well they could utilize the excellent educational facilities availiable to them to become more skilled and valuable in the new economy.
That of course would require effort which seems to be in short supply these days in certain groups.
Effort? Doesn't that fly in the face of entitlement?

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