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Labor Unions Kill the Twinkie and 18,000 Jobs

roosonhead Wrote: Nov 16, 2012 1:18 PM
Hostess was owned by a private equity firm who purchased the company with the expectation that 1) it would either make Hostess sufficiently profitable or 2) it would liquidate the company for a profit or small loss. The first bankruptcy was to aid in restructuring the company for profitability. What the owners didn't count on was the administrations outright war against the snack food sector which deeply affected revenue. The Unions played a very dangerous game here. When a win option for management is to sell the company anything you do to make keeping the company less attractive to the owners is a spin of Russian Roulette.

Labor Unions have officially killed off the Twinkie. The company that makes the yummy treat announced today they will start to downsize operations (a.k.a. fire people) as a result of a long battle with union workers.

Hostess Brands Inc., the bankrupt maker of Twinkies and Wonder Bread, said it had sought court permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.

Hostess said a national strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that began last...

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