Hostess, bakers union mediation fails


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Posted Online: Nov. 20, 2012, 9:53 pm
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McClatchy News Service
Looks like it'll be a bake sale after all. Hostess Brands Inc. said Tuesday that mediation efforts with the Bakery, Confectionery, Tobacco and Grain Millers Union were about as successful as a Twinkie without the cream filling.

That means the pastry maker will return to bankruptcy court in White Plains, N.Y., on Wednesday morning to argue its case for liquidating and selling off its assets.

The company "will have no further comment" until then, it said.

The failed talks will likely be devastating news to legions of Americans who stockpiled Ding Dongs and Ho Hos over the weekend — after Hostess first said Friday that it was shutting down — only to rejoice when the company agreed Monday to attempt a reconciliation with its union.

Far worse off, however: the more than 18,000 workers who will lose their jobs as Irving, Texas-based Hostess shuts down its operations. The brand was powered by hundreds of distribution centers, bakeries and outlets spread around the country.

The company blamed a strike by BCTGM union members for its decision to shutter; workers who walked off their jobs accused Hostess of boosting executive pay while plundering worker benefits and slashing wages.

The mediation, suggested by Judge Robert Drain, may have been doomed from the start, according to experts. A line of potential buyers has formed in the past few days, among them Hurst Capital and, according to reports, Flowers Foods, Sun Capital Partners and Bimbo Group.

















 



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  Today is Thursday, April 17, the 107th day of 2014. There are 258 days left in the year.

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1914 -- 100 years ago: Members of the First Church of Christ, Scientist, decided to erect a new edifice at a cost of about $60,000.
1939 -- 75 years ago: Willard Anderson, junior forward for the Augustana College basketball team, which won 17 out of 22 contests, was elected captain of the quintet.
1964 -- 50 years ago: John Hoffman, Moline, president of the Sac-Fox Council of Boy Scouts, will be honored for his 50 years in scouting by members of the council at a dinner Thursday evening.
1989 -- 25 years ago: The Quad-Cities has what is believed to be the area's first elite-class gymnast. It's the stuff upon which Olympic competitors are made. Tiffany Chapman, of Rock Island, not only has earned the highest possible gymnast ranking, she won the honor at age 11.






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