Mediation efforts to bring together Hostess Brands and the union with which they have been embroiled in a labor dispute were unsuccessful. This will force the company to go ahead with its liquidation plans as it had previously announced.
The company had tried to talk with Bakery, Confectionary, Tobacco and Grain Millers Union to try to resolve labor disputes that had caused Hostess to announce it would be closing down operations. Hostess, the maker of Twinkies, Ding Dongs and Wonder Bread among other treats, said that it would continue to seek the liquidation it had announced last week, as attempts to save the company had failed. The union did not agree with concessions put forward and the company will continue its reorganization scheme as it had earlier filed Chapter 11 bankruptcy.
Chief Executive Officer of Hostess Brands Gregory Rayburn had suggested that the company would sell off parts of its operations and individual brands separately to the highest bidder.
A nationwide strike staged by union members crippled the company, causing losses running into millions of dollars. The company said that lender officials and the International Brotherhood of Teamsters had done all they could to convince the smaller Bakers union to come to an agreement, but had failed.
Hostess Brands will be laying off at least 18,500 staff and close its stores and 570 bakeries. The company had announced closures of at least 5,550 delivery routes, as well as plants in the wake of its liquidation. The Teamsters is the larger union that has a large membership of Hostess’ employees and it had agreed to the offer made by Hostess, but BCTGM refused the offer and staged strikes at the company’s locations.
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