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Tipsheet

Labor Unions Kill the Twinkie and 18,000 Jobs

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.

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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 week had crippled its ability to produce and deliver products at several facilities.

The liquidation of the company will mean that most of its 18,500 employees will lose their jobs, Hostess said on Friday.

As usual, labor unions have become their own worst enemy.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Chief Executive Gregory Rayburn said in a statement.

"Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders," Rayburn added.

Love Twinkies? Better stock up now. The Twinkie section of the Hostess website is already out of commission.


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