Hostess has announced it is liquidating today after stating the would do so if the striking baker's union did not return to work yesterday. Yesterday came and went and now Hostess will be closing and 18,000 people will be out of jobs.
Here is an article summarazing the story:
Hostess Brands closing for good due to bakers strike - Nov. 16, 2012
The Teamsters put out a statement, criticizing the Baker's union for their choices yesterday:
Unannounced Strike Has Put Thousands of Jobs in Jeopardy
(WASHINGTON) ? Today, the Teamsters Union announced its recommendation to the Bakery, Confectionary, Tobacco and Grain Millers International Union (BCTGM) that a vote of its Hostess members by secret ballot should be held to determine if the workers want to continue their strike of the company and force it into liquidation.
On Wednesday, Nov. 14, Hostess Brands indicated that if it couldn?t resume normal operations by 5 p.m. EST on Thursday, Nov. 15 that it would have to begin the liquidation process. Teamster Hostess members and all Hostess employees should know this is not an empty threat or a negotiating tactic, but the certain outcome if members of the BCTGM continue to strike. This is based on conversations with our financial experts, who, because the Teamsters were involved in the legal process, had access to financial information about the company.
As stated previously, Teamster Hostess members have been frustrated by numerous missteps by a variety of Hostess management teams, but the union has tried to engage constructively to find a solution to preserve jobs. That comprehensive engagement has spanned 18 months.
The Teamsters chose to challenge the company?s path of a worker-only solution, engage constructively so other constituents would be sacrificing and require management changes and oversight so that the same missteps would not be repeated.
In fact, when Hostess attempted to throw out its collective bargaining agreement with the Teamsters in court, the Teamsters fought back and won, ensuring that Hostess could not unilaterally make changes to working conditions during the several months? long legal process that recently ended. Teamster Hostess members were allowed to decide their fate by voting on the final offer conducted by a secret mail ballot. More than two-thirds of Hostess Teamsters members voted with 53 percent voting to approve the final offer.
The BCTGM chose a different path, as is their prerogative, to not substantively look for a solution or engage in the process. BCTGM members were told there were better solutions than the final offer, although Judge Drain stated in his decision in bankruptcy court that no such solutions exist. Without complete information, BCTGM members voted by voice votes in union halls. The BCTGM reported that over 90 percent rejected the final offer and three of its units ratified the final offer.
On Friday, Nov. 9, the BCTGM began to strike at some Hostess production facilities without notice to the Teamsters despite assurances they would not proceed with job actions without contacting the Teamsters Union. This unannounced action put Teamster members in the difficult position of facing picket lines without knowing their right to honor such a line without being disciplined.
As is our longstanding tradition, Teamster members by and large are honoring Bakery Worker picket lines when encountered and complying with their contractual obligations when not encountering picket lines. The BCTGM leaders are putting Teamster members in a horrible position ? asking them to support a strike that will put them out of a job when they haven?t even asked all their members to go on strike.
That strike is now on the verge of forcing the company to liquidate ? it is difficult for Teamster members to believe that is what the BCTGM Hostess members ultimately wanted to accomplish when they went out on strike. We may never know unless the BCTGM members, based on the facts they know today, get to determine their fate in a secret ballot vote. Teamster members would understand that the will of the BCTGM Hostess membership was truly heard if that was the case.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit International Brotherhood of Teamsters | International Brotherhood of Teamsters (IBT) for more information. Follow us on Twitter @Teamsters and ?like? us on Facebook at www.facebook.com/teamsters.
I snooped on the teamsters facebook page and found a couple of people voicing their opinions that the Baker's union was not in the wrong because the corporations demise was ultimately do to corporate greed and people from the top taking more than their fair share at the employees expenses.
Here are a couple of quotes from people on that facebook page. Remember these are just quotes from regular people so i can't confirm the accuracy:
The Hostess problem in a nutshell.
The upper management gave themselves a 30-85% raise with the CEO getting a 300% raise 1 month before filing for bankruptcy. They stopped paying into our pension in July 2011. Now $3 per hour comes out of OUR wages to go to OUR pension. When the company stopped paying into the pension, they did NOT return that $3 to OUR wages. Which means they have STOLEN over $7000 from each employee to date from pension contributions that we voted to come from our pay. That's alot of money any way you look at it. I pay $35 each week for health insurance right now. As of Nov. 18th that will jump to $90 per week for family coverage. The company told us a 17% increase for insurance. Is that 17%???? NO. And the insurance is worst then the insurance we had already. The company has taken from the workers over the last 8 years and has done NOTHING with the money but put it in their pockets. They promised after the last concessions that they would invest that money into the plants and the vehicles. Yet they did neither. They put the money into raises for themselves, hiring more management then the company needs and blowing in about every way possible. Just research the company on the internet and you will see it all for yourself. If you look for the truth, you will find it.
....atleast ceos aren't hungry.....employees have been giving and giving for years....yet still hostess blames workers and thier wages instesd of blaming mngment for crazy salaries that no one cares to talk about
hate it for the brothers i use to work with that are loosing jobs , but glad to see there is still a union ( BCTGM) that will stand up to cooperate greed ..... unlike the teamsters leaders at ibt after the letter they put out to its members........
Teamsters need to back their union brothers at Hostess BCTGM insted of crossing our picket line what a shame
What do you think? Do you think that the Baker's union was irresponsible in their actions, jeapordizing thousands of jobs for people in and outside of their own union? Or do you think they did what needed to be done, as a fight against corporate greed and poor administrative practices?