Hostess, bakers union mediation fails


Share
Posted Online: Nov. 20, 2012, 9:53 pm
Comment on this story | Print this story | Email this story
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.

















 



Local events heading








  Today is Thursday, July 24, the 205th day of 2014. There are 160 days left in the year.

1864 -- 150 years ago: The Rev. R.J. Humphrey, once a clergyman in this city, was reported killed in a quarrel in New Orleans.
1889 -- 125 years ago: The Rock Island Citizens Improvement Association held a special meeting to consider the proposition of consolidating Rock Island and Moline.
1914 -- 100 years ago: The home of A. Freeman, 806 3rd Ave., was entered by a burglar while a circus parade was in progress and about $100 worth of jewelry and $5 in cash were taken.
1939 -- 75 years ago: The million dollar dredge, Rock Island, of the Rock Island district of United States engineers will be in this area this week to deepen the channel at the site of the new Rock Island-Davenport bridge.
1964 -- 50 years ago: The Argus "walked" to a 13-0 victory over American Container Corporation last night to clinch the championship of Rock Island's A Softball League at Northwest Douglas Park.
1989 -- 25 years ago: The Immediate Care Center emergency medical office at South Park Mall is moving back to United Medical Center on Sept. 1. After nearly six years in operation at the mall, Care Center employees are upset by UMC's decision. The center is used by 700 to 800 people each month.








(More History)