Obamanomics Kills Another – RIP Hostess and 19,000 Jobs.

Gregory Rayburn , Hostess CEO and maker of such loved snack foods as Twinkies and Ding Dongs, warned increasingly aggressive labor union leaders that their tactics could result in the company having to shut down.  It appears Big Labor did not believe him.  They should have.  As of today, Rayburn announced his intention to begin liquidating the multi-billion dollar company – a process that will result in the loss of nearly 19,000 jobs.

EXCERPT:  (via AP)

HOSTESS MOVES TO LIQUIDATE AFTER CRIPPLING STRIKE

Hostess Brands Inc. says it’s going out of business after striking workers across the country crippled its ability to make its Twinkies, Ding Dongs and other snacks.

The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands if plants hadn’t resumed normal operations by a Thursday evening deadline. The deadline passed without a deal.

The closing would mean the loss of about 18,500 jobs.

…Rayburn said the union’s leadership had misled members into believing there was a buyer in the wings who would rescue the company. He said the union hadn’t returned the company’s calls for the past month.

A union representative did not immediately return a call seeking comment.

…Hostess said the company is unprofitable under its current cost structure, in large part because of union wages and pension costs. Rayburn said in a statement on the company website that all employees will eventually lose their jobs, “some sooner than others.”

“Unfortunately, because we are in bankruptcy, there are severe limits on the assistance the (company) can offer you at this time,” Rayburn wrote.  LINK

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Hostess attempted to negotiate with Big Labor.  The economy has proven difficult, and union salary and benefits were crippling the company’s ability to remain a viable operation.  Big Labor, as it so often does, simply demanded more, even at the risk of the very jobs it took union dues from in the guise of protecting.  Those union leaders will keep their jobs.  The workers of Hostess will not.   Welcome to the second term of Barack Obama’s America…    -UM

______________________

Cover for 'The Man Who Calls Himself Obama Volume III'

The Man Who Calls Himself Obama Volume III

 

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Be courteous to all, but intimate with few, and let those few be well tried before you give them your confidence. -G. Washington

23 Comments to Obamanomics Kills Another – RIP Hostess and 19,000 Jobs.
      • Marlowe
      • The shuttering of Hostess proves once again that Big Unions care NOTHIMNG for their workers only POWER. It is a hugely underreported story but every year Unions force companies out of business rather than negotiate over a few cents/hour.

        UNIONS CARE ABOUT NOTHING BUT POWER and least of all– those they claim to represent.

        • bill o'rights
        • My favorite narrative is…

          The unions fight against the big, bad corporations.

          So, am I to understand that unions themselves are NOT big, bad corporations?

          I would argue that an entity with hundreds of millions or billions in assets, but with non-profit status and ZERO accountability–an entity allowed to bully and intimidate with impunity, is BY FAR the worst kind of corporation in the world.

    • luxuryoption
    • And the current 18,000 DOES NOT INCLUDE the previous 1,850 that were laid off in July 2012 in CALIFORNIA ALONE. The entire state was impacted at the July 2012 layoff.

    • bill o'rights
    • If Hostess were producing products acceptable to Moochie, I’d bet the government would quickly intervene in the bankruptcy process, in order to nationalize them.

      Just wait…when the next company to fold has measured value to the administration, you can bet they’ll intervene in order to natiaonalize.

      • TX Boy
      • EXACTLY!

        I’m actually watching very closely to see what happens here… remembering back to that interview with WSI about Brazil and what they did there (the Labor Unions)?

        They destroyed the ability of numerous private industries to do business so that the government “had” to take them over in order to “avoid a crisis”… to the point where the government now runs the majority of what used to be private industry companies. WSI and MI said it was a “trial run on a smaller scale for their plans for America” — the government takeover.

        It will be very interesting to see watch what happens next… that is if indeed they’re allowed to ‘shut down’ where the union workers lose 19K jobs. It will also be interesting to see who buys the divisions they plan to sell off and how the “buyer” is able to come up with the funds to do so… maybe govt guarantees and/or loans?

        I know it’s a stretch perhaps, but the negative press that they’re going to get due to the inflexibility of the labor union — that they would rather get no paycheck than an 8% reduction to help the company get back on its feet — has got to be enormous… unless, of course, the Obama people & state-run media decide to “Petraeus them” with their own negative media campaign to protect the union somehow. 19K jobs lost in such a high-profile way will cause these state govt employees to start thinking about the economy and maybe be more willing to give up some collective bargaining rights when the Governors come calling in order to balance their budgets… and I can’t see the Obama minions or the labor unions sitting back and allowing that to happen.

    • ShainS
    • I wonder what percentage of those losing their jobs voted for Obama in 2012 — surely, more than a majority? Too bad … so sad. Oh well, they can stay on Unemployment Forever now — I believe that’s the “new normal.”

      • Vyxen
      • Remember, those on government programs have more disposable income than those that are working- so really, this is a benefit. No more worries for the Union Bakers, they are now being paid by Uncle Sugar to stay home and live the dream. Can’t see how this is a negative for anyone.

        Except for those who want to work and lead a life of freedom.

    • TX Boy
    • I’m actually watching very closely to see what happens here… remembering back to that interview with WSI about Brazil and what they did there (the Labor Unions)?

      They destroyed the ability of numerous private industries to do business so that the government “had” to take them over in order to “avoid a crisis”… to the point where the government now runs the majority of what used to be private industry companies. WSI and MI said it was a “trial run on a smaller scale for their plans for America” — the government takeover.

      It will be very interesting to see watch what happens next… that is if indeed they’re allowed to ‘shut down’ where the union workers lose 19K jobs. It will also be interesting to see who buys the divisions they plan to sell off and how the “buyer” is able to come up with the funds to do so… maybe govt guarantees and/or loans?

      I know it’s a stretch perhaps, but the negative press that they’re going to get due to the inflexibility of the labor union — that they would rather get no paycheck than an 8% reduction to help the company get back on its feet — has got to be enormous… unless, of course, the Obama people & state-run media decide to “Petraeus them” with their own negative media campaign to protect the union somehow. 19K jobs lost in such a high-profile way will cause these state govt employees to start thinking about the economy and maybe be more willing to give up some collective bargaining rights when the Governors come calling in order to balance their budgets… and I can’t see the Obama minions or the labor unions sitting back and allowing that to happen.

      • Anna
      • My thoughts exactly. I wonder if they will all meet in Galt Gulch? I think about that more and more these days. It seems we are living Rand’s vision of what could happen.

        Also, this closing of Hostess really bothers me. More than any other company, this hits so close to home in that most of us have been eating Hostess products since we were kids. When an icon like Twinkies or Ho Ho’s (my personal favorite) goes bust you KNOW# we’re in deep doo!

        RIP Hostess.

    • bill o'rights
    • I’D LIKE TO PROVIDE A HEADS-UP FOR EVERYONE!!!

      I’ve been receiving correspondence from many people who follow this forum. While many of us here are conservatives, there are many others who frequent this forum as well.

      In lieu of the present situation…namely, that the results of the election have not yet been signed off on, I think we need to go out of our way to clarify that what we’re facing is not partisan in nature. Indeed, our battle is against an enemy that has usurped our nation, including both parties. And, we fight this battle not as party affiliates but as Americans, regardless of our party affinities.

      With that in mind, I am posting the following link, which provides evidence of the bipartisan support out there to stop the ongoing destruction of America:

      http://wewillnotbesilenced2008.com/contact.htm

      It should be noted that this film is one of the main reasons so many Democrats turned away from the Obama administration in 2012 (and they did!!!!).

      Some of you have seen it, others have not. But we need to keep the pressure on and we must educate as many as possible.

      I hope that those whose affinities lie on the political left will see this documentary and understand that we are all in this together, against a common enemy.

      For those who want to go that extra mile, perhaps you could help out by contacting Bettina Viviano and encourage her to create a new video, related to the 2012 elections.

    • E.A.B.
    • This may sound trivial, but I think we conservatives could really make a Big-Bird-esque difference with this.

      Twinkies are a cultural *icon*. We should immediately begin telling everyone in America that Big Labor killed the Twinkies.

    • maggie
    • As long as some other company buys up the brand and keeps making Ho Ho’s and Chocolate Cupcakes, I’ll be happy. And in case they don’t, I might have to stockpile some cupcakes. I don’t often eat them anymore, but the idea of not having ANY available – well, that’s just unthinkable.

    • Rurik
    • Mot only is this going to affect Hostess brands, Remember that Hostess also produces products for Walmart and grocery chains to market under their house brands. Those too will cease. And the Hostess surplus outlet discount stores will also close across the country throwing thousands mdore out of work. This will automatically push up the cost of other bakery lines which no longer compete with Hostess.Thus the contagion will spread to other bakeries. Food prices will soar in general.
      We who take the Halfricans Kommunist Kredentials seriously are not really surprised that in his second term he would begin to engineer the traditional and obligatory artificial food famine. Remember that in the Nineteenth Century Ukraine was the breadbasket of not just Russia, but also of Europe. America’s former exceptionalism demands we go and follow the same path.

      • Jules
      • Alas, Rurik, you’re seeing what I’m seeing in the not-too-distant future if there is not divine intervention.

        And in tribute to my friend, bill o’ rights, let me say

        ‘Buy guns. Buy ammo. It is your right!’

        And buy seeds. Buy soil. Fall on your knees, pray, and love your neighbor. It is your duty.

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