Hostess, bakers union mediation fails


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Posted Online: Nov. 20, 2012, 9:53 pm
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McClatchy News Service
Looks like it'll be a bake sale after all. Hostess Brands Inc. said Tuesday that mediation efforts with the Bakery, Confectionery, Tobacco and Grain Millers Union were about as successful as a Twinkie without the cream filling.

That means the pastry maker will return to bankruptcy court in White Plains, N.Y., on Wednesday morning to argue its case for liquidating and selling off its assets.

The company "will have no further comment" until then, it said.

The failed talks will likely be devastating news to legions of Americans who stockpiled Ding Dongs and Ho Hos over the weekend — after Hostess first said Friday that it was shutting down — only to rejoice when the company agreed Monday to attempt a reconciliation with its union.

Far worse off, however: the more than 18,000 workers who will lose their jobs as Irving, Texas-based Hostess shuts down its operations. The brand was powered by hundreds of distribution centers, bakeries and outlets spread around the country.

The company blamed a strike by BCTGM union members for its decision to shutter; workers who walked off their jobs accused Hostess of boosting executive pay while plundering worker benefits and slashing wages.

The mediation, suggested by Judge Robert Drain, may have been doomed from the start, according to experts. A line of potential buyers has formed in the past few days, among them Hurst Capital and, according to reports, Flowers Foods, Sun Capital Partners and Bimbo Group.

















 




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  Today is Sunday, Aug. 31, the 243rd day of 2014. There are 122 days left in the year.

1864 -- 150 years ago: The Chicago and Rock Island Railroad will carry all who wish to attend the Chicago convention for half fare — that is, full fare to Chicago and return free.
1889 -- 125 years ago: Hardy Hetter, for several years yardmaster in the Burlington Railroad yards in Rock Island and Moline, was transferred to Beardstown. He was succeeded here by J.E. Albrecht.
1914 -- 100 years ago: Corn was estimated at 50 percent of the normal crop in Rock Island County by Crop Correspondent Thomas Campbell.
1939 -- 75 years ago: Robert Carroll, 12-year-old son of Mr. and Mrs. Farr Carroll, of near Aledo, won the grand championship of the Mercer County baby beef show with "Fat Stuff."
1964 -- 50 years ago: About 250 persons attended the first in a series of horse shows at the Hillandale Stables off Knoxville Road near Milan on Saturday afternoon and evening.
1989 -- 25 years ago: Ground was broken this morning for the $4.5 million Rock Valley Business Park near Rock Valley Plaza, Rock Island. The first building is 17,000 square feet for offices and a warehouse and should be completed by Dec. 1.




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