Yes, this has everything to do with twinkies and nothing to do with jobs. Would you rather take a bit of a pay cut now and work the pay back to where it was slowly in order to keep your job, or would you rather just stop working now and have the company go under?
Personally I would take the hit and either help the company succeed, or take the hit and use that time to find another job in the industry.
Is it possible the executive team is not taking a hit on their own? Possible. If that is the case, maybe the bakers just want to sock it to the board and executives that are ripping off the company? What is the history there, are they taking pay cuts too? Generally execs make tons more than the working folks, and get way bigger bonuses and all that. I could see reasons for both sides of this story, but will never know without more info which side is more on solid ground here. It's usually somewhere in the middle.