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Comments about ‘Hostess to close, cites nationwide worker strike (+video)’

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Published: Friday, Nov. 16 2012 2:56 p.m. MST

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PGVikingDad
Pleasant Grove, UT

State's Evidence Exhibit A: "Why Unions have Lost All Value in the American Marketplace." Nice work, Teamsters; you've destroyed an American icon.

DEW
Sandy, UT

I wonder who will pick up or buy their recepi becasue some company don't taste the same flavor like Hostes. :-(

DEW
Sandy, UT

Nice going Obama which not just the Unions

lost in DC
West Jordan, UT

actually, PGVIkingDad, the teamsters agreed to their contract, it was the other unions still out on strike that sunk the company. But your point is still valid, unions have destroyed the company.

welcome to the new norm under BO, 8% uneployment (or thereabouts) is the best we'll do

Well Read
SALT LAKE CITY, UT

I do not think the unions caused all the problems. We do not know all the facts. The unions are receiving all the bad press. Other causes could be: Products do not sell because they are perceived by the public as being unhealthy. Miss-management at the corporate level. Perhaps the company would still have to close if the unions caved. We can not know from where we sit in our homes. It does seem that the unions have caused it, but who knows???? It is hard for me to believe that a union would be the major reason a company as large as Hostess would close the doors. There must be bigger issues. The unions are just being used as the scapegoats!! I am not defending the unions. I just do not have enough facts to correctly judge!!

DVD
Taylorsville, 00

@Well Read: I think you summed it up well. We don't have all the facts. Hostess was in bankruptcy twice. It's doubtful it was all the unions' fault for wanting decent pay and working conditions for the people working there. But again, we don't have all the facts.

mohokat
Ogden, UT

The Union wins again! You reap what you sow.This is an example of where the Obama administration is taking this Country.

one old man
Ogden, UT

Do some research before jumping to any conclusions. There is an excellent article in Fortune, but DN won't allow links to be posted here so you'll need to Google Fortune Hostess Bankruptcy to find it.

Hostess was in bankruptcy once before and was taken up by a set of Equity Companies and Hedge Funds similar to Bain Capitol.

Here's an excerpt from the article: "The dramatis personae are impressive: the Teamsters; two large hedge funds, Silver Point Capital and Monarch Alternative Capital; and the private-equity firm Ripplewood Holdings."

This may be just as much about attempts to bust unions and destroy long-standing pension plans as it about making profits for investors. It's much, much more complex than simply blaming one side or the other.

But it is something all Americans should be concerned about -- because Hostess-like stories are playing out all over America. Your job or your retirement could be next in line.

Research before you comment or draw any conclusions. Doing that and learning the full truth will help us all.

KJB1
Eugene, OR

Blaming unions is lazy and a cop-out. Bad management is what drove Hostess into the ground. So much for "personal responsibility."

JoeCapitalist2
Orem, UT

With any business it is not about "decent pay" or "living wages". It is about a worker adding more value to the company that they receive in wages and benefits.

If I own a business and every worker adds $1.50 in value for every $1 they cost me, then I want thousands of them. If every worker only adds $.90 for every $1 they cost, then I want zero of them.

As a worker, if I want a company to pay me $25,000, $100,000, or $1,000,000 a year then I need to find a way to contribute at least 120% of that to the company's value. Otherwise, why would they pay me?

Rock Of The Marne
Phoenix, AZ

My guess, seeing that it is owned by venture/vulture capitalists, is that the owners think they can make a handsome price piece parting the company out. Just like many used cars are worth more in parts than whole, same with many large companies. No owner with an iconic brand(s) is just going to just close and lose everything. I am sure they had a plan all along on how they would sell it off, if things didn't go their way, and make out just fine. Too bad for the former workers. The Koch brothers must be smiling.

BSU
Lehi, UT

I'm a Hostess worker. Upper management, the Teamsters, and Obama policies all played a role in this. Regulations, gas prices, etc increased costs, teamsters refused to negotiate different delivery methods, upper management gave itself million dollar bonuses and 300%^ raises, and the BCTGM members, who make the products, were asked to work below the poverty level to support all of these. I believe some upper management thought they could get away with what they were doing and hoped Obama would bail them out like he did GM. I think the BCTGM just wanted to bring attention to what was going on and to close the bakeries that way instead of having everything taken from them first. It was far more than 8%. And we make far more than twinkies. IF they really shut down it will affect all of you. I'll post more later.

Bubble
SLC, UT

Once again, when a company is unable to manage itself and stay in business it is the fault of the Unions, or the President, or the lowest paid employees, or the storm on Saturn...

but when a company is doing good, why - the highly paid management is solely responsible for that!

LDS Liberal
Farmington, UT

Great!

This couldn't have come at a worse time --
Colorado and Washington just passed marijuana laws.

Grundle
West Jordan, UT

Re:LDS Liberal

Now that was funny!

one old man
Ogden, UT

Here is part of an article from the Wall Street Journal:

"BY RACHEL FEINTZEIG

Creditors of Hostess Brands Inc. said in court papers the company may have "manipulated" its executives' salaries higher in the months leading up to its Chapter 11 filing, in what the creditors called a possible effort by Hostess to "sidestep" Bankruptcy Code compensation provisions.

The committee representing Hostess's unsecured creditors alleges that information it has gathered suggests "the possibility" that the company converted a chunk of its top executives' pay from performance-based bonuses to salary, "at least in part to sidestep" rules designed to ensure that companies in bankruptcy aren't enticing their employees to stay on board with the promise ..."

Yup. America's JOB CREATORS are hard at work, aren't they?

xscribe
Colorado Springs, CO

@BSU: Can you please delineate how Obama caused this? Because I can't find that evidence from the post you wrote. BTW, oil is at $85 a barrel, yet gas is still high. How, exactly, can/does Obama control that?

Aggielove
Cache county, USA

KJB1
No matter what the conservative view point is, you dive to the opposite side of the road.
I then saw you live in Eugene.
I have a question. If you live in Eugene, why would you join a comment group in Utah? Unless your Mormon?
Just curious I guess

Leopard
Cottonwood Heights, UT

Another case of the parasites killing the host or hostess.

My daughter works for a manufacturing company in Colorado. HR and management have been discussin how to cope with the Obamacare, it entailed cutting hours and laying off personnel.

The plant manager was called to Japan this week to meet with the owners. My guess...it is no longer economically feasible to operate in the US. Welcome to the brave new socialist world.

Capital is patient and money is fungible. The wealthy, the brilliant, the creative, the productive are not going to stay around and be milked like aphids. The useless eaters will be squawling and mewling, no one will hear them. Dollar collapse coming after they raid the 401ks to fund worthless treasuries. Country going down, it is just a matter of time.

toosmartforyou
Farmington, UT

And so we see that the old 30-year retirement package really is a thing of the past because today's economy just won't support it. So hang on, strikers, and now you can all go collect unemployment, where society will support you for 6 months or so. That wouldn't be so bad if there were another job you could find, but I haven't read any classifieds advertising for "Twinkie Makers Needed" lately. Have you?

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