When all else fails, blame a union.
Hostess should have adjusted to the market. Twinkies and cupcakes just aren't as popular as they once were. Just look at Krispy Kreme. When I was in HS, everyone ate'em. But now that craze is over. Today? I don't know of anyone who eats Krispy Kreme.
LOL - I actually think it's the opposite. This country is completely saturated with fat ****s and the market is completely saturated with fat **** foods. Just take a walk down the junk food aisle in your local supermarket. Hostess could no longer handle or evolve with the competition. They've been making the same crap for 90 years.
I wouldn't worry though - "Hostess" isn't going anywhere. This name brand recognition is way too high. Someone will buy it up.
And make it profitable by not paying their workers what hostess was paying theirs.
Does anyone appreciate the irony that just as Hostess is going out of business, pot is becoming legal in more and more states?
...But the tasty cakes originally made with milk and eggs had a shelf life of two or three days. By the 1940s, postwar America was pushing hard for consumer convenience and had a huge chemical capacity surplus from the war effort, Ettlinger said.
That combination led food scientists to find new uses for, among other chemical concoctions, polysorbate 60. The petroleum-based egg yolk substitute includes a toxic gas used to thicken paint and rocket fuel, Ettlinger said. Polysorbate 60 also happens to be a Twinkie ingredient.
As food processing evolved, the composition of Twinkies expanded to include artificial butter flavor, high-fructose corn syrup, calcium sulfate and sodium stearoyl lactylate, to name a few. Today Twinkies include about 40 ingredients....
Here's a great article on the Hostess situation that everyone should read:
https://www.dailykos.com/story/2012/11/18/1162786/-Inside-the-Hostess-Bankery#
Some highlights:
Top wage was cut from $48,000 in 2005 to $34,000 ($16.12 per hour) last year. The company's latest proposal was to cut it again to $25,000 ($11.26 per hour).
The pension was entirely self funded. The company "borrowed" it and never paid it back.
The company's proposal included doubling insurance premiums while lowering the overall quality of the health plan.
The company's latest proposal included canceling all future pension plan participation.
6 CEOs since 2002, all left the company worse than when they took over, yet all got paid in full plus raises and huge bonuses. The current CEO aready announced he was leaving less than a year into the job, before he even offered the company's final proposal.
One CEO "leaked" a letter saying the company had the best quarter in history. He then sold all of his stock, and released an updated letter saying the company was in big trouble. He resigned, but was brought back on as a consultant.
Yeah, I'm sure it's all the unions' fault that hostess makes some of the most unhealthy food you can get.
I'm sure the execs who made the decision to not sell anything healthy, even when America was clearly moving towards healthier eating, took the same cuts they are asking the bakers to take, right?
I don't know the specifics behind this strike. I do know that all of the things hostess is famous for, are things I wouldn't let my kids eat all the time. And that is certainly not something that can be blamed on the bakers union.
I hope every one of those ******** that voted for the strike lose their homes(and everything else, for that matter) ...
How bad does a company have to be, in order for the workers to prefer closing it down to taking a pay cut? You're right, the workers are risking their homes. Perhaps they felt it's worth the risk, or perhaps they felt they would lose their homes even ifr Hostess stayed open.
There was an 8% cut across the board with give backs in the years to follow. 92%>0%. If I wasn't headed out job hunting I would post the entire proposed(ratified by Teamsters) contract.
There was an 8% cut across the board with give backs in the years to follow. 92%>0%. If I wasn't headed out job hunting I would post the entire proposed(ratified by Teamsters) contract.