After 82 years of operations, the Hostess Brands are ceasing
operations and liquidating the company as of Friday, November 16th. This means no more Twinkies, Ho-Ho’s, Ding
Dongs, or Wonder Bread. The company has
requested permission to liquidate its assets and discontinue operations. This will potentially result in the loss of
some 18,500 jobs.
The company has issued a statement on its website explaining
why they feel these steps are necessary.
Below is a link:
After filing for bankruptcy for the second time in a decade,
the company has approached its workers requesting an 8% pay cut. The company’s cost structure, which includes
salary and pension expenses, is not allowing the company to maintain
profitability. Even though it is the
employees which would have to endure the pay cut, it is the unions that
negotiate with the company’s management.
Although the company was able to reach an agreement with one
of the largest unions, the Teamsters Union, they were unable to reach the same
agreement with the Bakery, Confectionary, Tobacco Workers and Grain Millers
International Union. The union was
unwilling to accept the pay cut blaming managerial issues for the company’s
inability to compete. As a result of no
agreement being reached, the management of Hostess has decided to liquidate the
company in order to get the most value from its assets.
The company will be closing of 33 bakeries, 565 distribution
centers, approximately 5500 delivery routes and 570 bakery outlet stores across
the United States. While 18,500 Hostess
employees are expected to lose their jobs, the impact on the other businesses
and vendors which work with Hostess will be significant.
What do you know about labor unions? Under what conditions do you think it is
appropriate for management to ask employees to take a pay cut? Under what conditions do you think it is
appropriate for the unions to reject pay cuts?
What is your favorite Hostess snack and why?
Bailie- I know nothing about labor unions. Under the conditions of bankruptcy I think it is appropriate to ask employees to take a pay cut. Under the conditions that the company is doing fine in its financial state I think it is appropriate for the unions to reject pay cuts. My favorite Hostess snack is the Twinkie because it's a classic .
ReplyDeleteGrace- I think a labor union is a group of employees and wage earners who help other employees with dealing with their employers, but I'm not sure. I think it is appropriate if the companies know for sure they will go bankrupt if they cannot get any more money. If I were the employee, of course I wouldn't be happy with less money, but if it means I get to keep my job and still get some money, then I would get over it. I would still want a reasonable amount of money though, it would just be less of a reasonable amount. I think it is appropriate for the unions to reject a pay cut if the business is successful and can make money on its own, especially if the employees work really hard and deserve the money they earn, if not more. I have a wheat allergy so I cannot eat any Hostess snacks. Before I was allergic though, I liked Ho Hos because the fake cream filling stuff in the middle.
ReplyDeleteNikita- isn't a labor union a group of employees who work on certain parts in the company? I'm not quite sure. I think the conditions right now are a perfect time to ask employees to take a pay cut. Under the economy's condition, I don't think even a company as big as Hostess could continue working. But then again, maybe thats the problem. Again, I think the condition now is not the right time to reject. I like the powered donettes because, i mean, who doesn't like donuts? I never really cared for Twinkies though. Do you know how many preservatives are in those things?
ReplyDeletePatrick- I think a labor union is a group of employes that come together and demand things from the company in which they work for. I might be wrong though. the times it is acceptable to take a pay cut is probably like the problem where your business is losing more money that its getting. Unions can reject pay cuts when they are really poor or living paycheck to paycheck and would lose there homes if they didn't pay. I'm not a big fan of hostess but my favorite snack would be the cholate mini cake things i guess.
ReplyDeletePetie- I have no clue what a labor union is. I have heard about them in the news, but no real deep info. I think that it is appropriate when the employees have not been treated fairly or when the employees have workers have worked super hard, and have not been payed the deserved amount. It is appropiate to cut the pay when the workers have been slacking and have no sense of urgency, but only a sense of laziness. Another case is when the company has suffered a major bump in the road, and can't pay the employees the original amount. My favorite hostess snack is definitely the Twinkie. I don't know why but it is irresistible. I also like the ding dongs
ReplyDeleteNathaniel- If I remember correctly, a labor union is a group of people (in the same company) that works together in hopes to stand for each others rights, and to improve their quality of life. This would also benefit the company in the long run. A pay cut should be accepted if the economy is doing poorly, or something of the sort is happening. If the employees are taking pay-cuts, then the executives of the company should too, otherwise it wouldn't be fair for the people working. If the people also get a pay cut, I think that later, they should get paid back the money they should have received before too. It is not necessary to make a pay cut if the company/economy is doing well, and it's bad to make a pay cut one year, then a bigger one the next, and so on. Instead, the people working should be REWARDED by getting a little extra cash. To tell you the truth, I don't think I've ever had a product from Hostess before, so I can't exactly tell what is my favorite snack.
ReplyDeleteThomas B- I think a labor union is a group of employees that demand a change or something, kind of like a strike. I think it is fair to cut the pay if you are going to go bankrupt, but it still depends on how much they are cutting. If the employees had been working extremely hard to earn their pay check, I could see them rejecting it. Also if they really needed that money to feed their family or something like that, I could see them rejecting the pay cut. I have only had one Twinky before, but it was my favorite out of all the Hostess brand because they are the best tasting.
ReplyDeleteAndoni- My knowledge of a labor union is quite scarce. Actually i hardly have any idea what it is at all. I'm just going to take a guess.Judging by the other comment a labor union is a association of workers that speak on behalf of the other workers. If the future of the company depended on pay cuts from the employees than that might be ok to force people to take pay cuts. The workers will probably not like how there hard work is not being appreciated.My favorite hostess snack is between the chocolate cupcake things or Twinkies.
ReplyDeleteHayley: I did not know what a pay cut is but someone explained them to me. All I know is that is when a group of people get together to work as a whole. I think it is appropriate to ask someone to take a pay cut when it is take the cut or we shut down. I think it is appropriate to reject a pay cut when nothing is wrong. My favorite hostess snack are the powered donettes . They are really tasty. LONG LIVE THE DONETTES!!!!!!!!!!!!!!!
ReplyDeleteWes- I barely knew what a labor union was but isn't it about that work to help each other if in a same group. During the time of the drop in money I think it would be a good idea to take a pay cut and have a JOB. I think it is only OK to lose a pay cut if it does not cause any problems to the company. I loved the twinkies even though I haven't had many. They are my favorite and I'm going to miss them.
ReplyDeleteclaire-My favorite hostess snack is the cupcakes with the cream filling I have only had a few of them because all hostess snacks are realy bad for you. Did you know that twikies are able to be digested for a long time thats why i'v only had two twinkies.
ReplyDeleteA Labor Union is a group of labor workers that is formed to pretect peoples rights. A pay cut is when peoples pay checks are cut.
Luke-I honestly don't have a clue what labor unions are.My best guess is that they are a group of operations work the same company. If money is low in the company's budget, I think that under the conditions, it would be the appropriate time for a pay cut. It would be fine to reject a pay cut as long as what your doing makes sense and that it won't do harm to the company. In those conditions, however, it would not be a good time to fight the company about the payout. I don't have a favorite. I have only had one twinkie in my life, so i dont have one.
ReplyDeleteNekane-I don’t know anything about labor unions. If they do have a lot of employees they might be short pay so they may cut pay or even cut employees. Same thing I would think the same rules. Twinkies and dounuts, because there just so good but really bad for you.
ReplyDeleteRyan- I know a labor union is a group of people who work together to protect their right, but that's about it... I think it's appropriate for companies to make a pay cut when they have to many people working for them or when they have spent to much money on something. I think it's ok to the employes to reject the pay cut when their aren't making enough to begin with. I've never had a Hostess snack because oh my sisters allergies.
ReplyDeleteNatalie- A Labour Union is a group of workers who have banded together to help the members with wage and working condition problems. The Unions will bargain with employers in regards to their member's wages and working conditions. I think that Hostess had tried all sorts of things before they asked their employees to take a pay cut. I think that they had to ask for a pay cut in that situation. If a family was really hurting at the time, and they seriously needed that money, then yes, I think it was smart of them to reject it at first. But their employees should have accepted a deal, because some pay is better than no pay. Especially now that they are going to be out of a job or are already out of a job. I have only had a Twinkie once or twice, but they were pretty good. So I guess that's my favorite.
ReplyDeletei must be stupid cause i know absolutely nothing about Labor Unions. i saw when the unemployment rate is down and people aren't having much trouble with money is a good time to ask. the UNion should reject pay cuts when the Unemployment rate is up and trouble with money.i like those powdered donuts that are smaal and edible because i am not a big fan of twinkies. sorry Todd.
ReplyDeleteThis is Tomas by the way. If you get this Mr. Grant, change that zero to a 10 plaese.
DeleteNate- I don't know anything about Labor Unions. I think that it is okay for a company to make pay cuts, as long as they aren't too outrageous. Once again, I don't know much about Unions, but I would think that it would be okay for them to reject pay cuts as long as they are too much. As far as my favorite snack, I don't have one. The company's closing doesn't really sadden me because I never really got into the food. I have had a couple Twinkies here and there, though.
ReplyDeleteMegan- I agreed with everyone. i don't especially know what labor unions are. I'll guess they are a group of people working for one company. If they don't like their pay, then yes, they should protest. I know I would if I worked hard for that money. But, on the other hand, if the business needs pay cuts to make sure they have some profit, they I can see that. If they didn't have profit, the workers would not even get pay! I have never had any Hostess product. They look gross, and all I hear is bad raps about their "food". They cannot be healthy.
ReplyDeleteReed-I do not really no what labor unions are. I think they have something to do with the salary the workers get. If the workers do not like there pay they should talk to there manager or whoevers in charge and try to make a deal. But if the compony needs money to help there business then they should deduct pay depending on the workers position in office. I LOVE Hostess products. The sweet creamy deliciousness is like the nectar that the bee gets from a flower. Even though they are bad for you i have to have a couple a month.
ReplyDeleteAubrie-I don’t really know what a labor union is but I think it has to do something with what people want, and I think there are lots of different kinds of them depending on what your occupation is. When the choice is when everybody takes a pay cut a keeps their job or when everybody loses their job because of the company going out of business. When the company is doing well and making money and taking a pay cut would mean that they are getting paid a lot less then what other people are getting paid to do the same job. My favorite hostess snack is the chocolate or powered sugar doughnuts.
ReplyDeleteRaquel- I really dont know anything about labor unions and how they work.it is apporpiate that employers take a pay cut. Right at this time I believe it is not a good choice to reject. My favorite would have to be a Twinkie because i grew up loving them because every other sunday my mom would get gas and by us something, i would choose a twinkie most of the time.
ReplyDeleteJustin-I don't know what a labor union is. If the company's about to go bankrupt I think it's right to ask for employers to take a pay cut. If the companies doing fine you can reject. I don't eat anything from hostess so I don't know. They can't be good for you though.
ReplyDeleteLily- Labor Unions are a group of people who work together to protect there right. I think it is appropriate to ask to take a pay cut if the company is going to shut down. I think it's ok for the employes to reject the pay cut if they aren't making near enough money in the first place. I do not have a favorite hostess snack.
ReplyDeleteKeelie: I don’t know a lot about labor unions, so I’m going to look it up after this. It sounds like people who represent the company? I’m not sure. Anyways, I think it is appropriate for the management to ask employees to take a pay cut because everyone needs to do their part to help save their business. Having a job is better than no job and no way to support your family. I think they can reject pay cuts because it is their decision and if they are asking for an unreasonable pay cut. I wouldn’t want to work if I was barely being paid and could find another job, but since there are barely any jobs I would want to stay with mine, even if it means getting paid less. I like Twinkies because they’re mentioned in Zombieland, Wall-e, and Ghost Rider: Spirit of Vengeance. Those movies are cool.
ReplyDeleteLiam~ Not a lot! I know that Labor Unions try to come together to say," Hey we're people too and we deserve to be treated right!" It is a good circumstance to ask employees for a pay cut if the company is failing and if the employee is legitimate then he/she will understand that the company s going through tough times and that everyone needs to suffer from it. It is also understandable that a Labor Union rebels against that because of being treated badly at their job, and then they are asked for a pay cut. I have never liked twinkies, and frankly, I don't care if we lose the twinkie. I do, on the other hand, love donettes,
ReplyDeleteRylie: I honestly do not know what kind of Union that it. I think it would be appropriate to ask employees for a pay cut, if the circumstances are understandable. I think it would be appropriate to reject pay cuts when they are put on too often. My favorite hostess snack would be a Twinkie because I grew up with those. I will miss them.
ReplyDeleteAdriana:I dont really kniow what labor unions are the only thing that i know is that it involves peaople. if it were my as one of those employers i would take the pay cut if it meant keeeping my job. i know that they would be getting less but its better than having no job and no money. but if you r one of those people that wont change then i think you should take the pay vut and when u get off of wrk start looking for other jobs that are hiring that way when u find a job that fits you then when you quit you will at least still have a b plan.My favorite hostess snacks are the little powdered doughnuts beacause they are easy to eat in the morningn if you are running a little bit late, and cause they taste so good!!!!!!! as Hayley would say, LONG LIVE THE DOUGHNUTS!!!!!!!!
ReplyDeleteI don't know much about Union Labors, so I couldn't tell you what I think and know. Otherwise,if I worked for them I would want a pay cut because my job was on the line. Besides, it would go bankrupt. My favorite Hostess snack is defiantly not Twinkies. I know everyone loves Twinkies, but I really am not a fan. I could care less is those went away. My favorite Hostess snack is the Donetts and I would LOVE if they stayed!!
ReplyDeleteSydney
DeleteJohn-laber unions are organizations of workers around our country. Usually they work in large companies and the union helps negotiate fair pay and health insurance. I think it is fair that union workers take a pay cut if the company is not making money. I don't think it is fair that union workers take a pay cut if the company is making money. My favorite hosted snack is Doughnuts.
ReplyDeleteLiza- Labor Unions are worker around the country working for the same organization. I think the only conditions that are appropriate for a pay cut is when the company is spiraling into bankruptcy. It's fair to ask people to not have as much money so they can keep their jobs. Once the company is back on it's feet then you should reject the pay cut. My favorite hostess snack was the Ding-Dongs and the Tiny doughnuts. I have only one thing to say to them GOOD BY!!! (sob sob) TAKE CARE OF YOURSELF IN HEAVEN!
ReplyDeleteSean-
ReplyDeleteAll i know about the labor unions in the states is that they think that their work is bad while others have 10 hour work times in poorly cleaned and maintained areas, and getting .50-1.00 per hour, but mostly because they are mad because their bosses or more known as "bigwigs" want to save a little money to buy another frivolous thing while the "union" gets nothing in return. so i dislike both.
and something that big as hostess will not go without a fight, we all know it (some), so they will be around, just wait and see