THUNDER BAY – According to foodlore, the Hostess Twinkie was capable of lasting forever. Maybe not however, the iconic Twinkie is facing the end of the run as the company that makes the snack food is announcing that it will be liquidating the company.
The move has come after a Hostess Brands was moved into bankruptcy protection and workers moved toward strike action. The proposed closure of the company could impact up to 18,000 jobs.
The Union states that the real problem isn’t labour, but rather a company that ignored the basics of solid business. BCTGM International Union President Frank Hurt charges, “The crisis facing Hostess Brands is the result of nearly a decade of financial and operational mismanagement that resulted in two bankruptcies, mountains of debt, declining sales and lost market share. The Wall Street investors who took over the company after the last bankruptcy attempted to resolve the mess by attacking the company’s most valuable asset – its workers”.
“They sought to force the workers, who had already taken significant wage and benefit cuts, to absorb even greater cuts including the loss of their pension contributions. I have said consistently throughout this process that the BCTGM is a highly democratic organization and that our Hostess members themselves would determine their future. By an overwhelming majority, 92 percent, these workers rejected the company’s outrageous proposal, fully aware of the potential consequences. Our members know that the plans all along of the Wall Street investors currently in control of this company did not include the operation of Hostess Brands any longer than it takes to sell the company in whole – or in part – in a way that will maximize the profits of these vulture capitalists regardless of the impact on the workforce”.
“The wholesale bread and cake baking business is unique. The most successful and profitable wholesale baking companies share common attributes, most notably being executive leadership with extensive background in the business and a skilled and dedicated workforce. Hostess Brands and its predecessor companies have had the latter for decades.