After 82 years of operations, the Hostess Brands are ceasing
operations and liquidating the company as of Friday, November 16th. This means no more Twinkies, Ho-Ho’s, Ding
Dongs, or Wonder Bread. The company has
requested permission to liquidate its assets and discontinue operations. This will potentially result in the loss of
some 18,500 jobs.
The company has issued a statement on its website explaining
why they feel these steps are necessary.
Below is a link:
After filing for bankruptcy for the second time in a decade,
the company has approached its workers requesting an 8% pay cut. The company’s cost structure, which includes
salary and pension expenses, is not allowing the company to maintain
profitability. Even though it is the
employees which would have to endure the pay cut, it is the unions that
negotiate with the company’s management.
Although the company was able to reach an agreement with one
of the largest unions, the Teamsters Union, they were unable to reach the same
agreement with the Bakery, Confectionary, Tobacco Workers and Grain Millers
International Union. The union was
unwilling to accept the pay cut blaming managerial issues for the company’s
inability to compete. As a result of no
agreement being reached, the management of Hostess has decided to liquidate the
company in order to get the most value from its assets.
The company will be closing of 33 bakeries, 565 distribution
centers, approximately 5500 delivery routes and 570 bakery outlet stores across
the United States. While 18,500 Hostess
employees are expected to lose their jobs, the impact on the other businesses
and vendors which work with Hostess will be significant.
What do you know about labor unions? Under what conditions do you think it is
appropriate for management to ask employees to take a pay cut? Under what conditions do you think it is
appropriate for the unions to reject pay cuts?
What is your favorite Hostess snack and why?
Jackie- Honestly I barely know what labor unions are. I know that it is a group of people who make decisions as a whole for a certain amount of people or group. I think that as sad as it is to have so many people loose their jobs, I think that a pay cut is appropriate in this situation. The company is going out of business and this pay cut will still get people the money they worked for. So really I think that under the circumstances of a big industry like that going out of business it, I guess the most appropriate, but maybe inconvenient to employees than not getting paid at all or just getting cut off. I think that a pay cut is appropriate in a big industry going out of business where wage is lower. I think an appropriate situation for the union to reject pay cut may be if it is a smaller company that doesn't have quit so many employees and they are being paid much higher than minimum wage. My favorite Hostess snack would either be Twinkies or Ding Dongs. Honestly, I've barely had any Hostess treats and out of the ones that have tried these would be the best. I'm going to miss Twinkies and Ding Dongs, because they are a classic treat. My parents talk about them all the time and about their childhood. I like Twinkies and Ding Dongs because of their centers!!! Please, who doesn't love a whip cream center! I'm going to miss them! :(
ReplyDeleteConor - I know that labor unions are a group of people who make decisions for the people who work there. They decide when people are going to strike and stuff like that. I think its appropriate to have pay cuts when a company is going out of buisness and people have to keep it running. Even if you get paid less you still have a job which is more than some people have. I think when you get a pay cut even if you are doing good work and the company isn't going out of buisness you can reject it. They're just trying to makes more money for the company. My favorite Hostess product would have to be Ding Dongs. I like them because the chocolate and whipped cream go well together.
ReplyDeleteTaylor- I really don't know anything about labor unions. All I know is that they decide what the people of a company do. I think pay cuts are necessary in a situation like this. If a company is going bankrupt then that's what you have to do. At least you're being payed at all. If you aren't ok with it, then you should quit and work really hard to get a better job that pays more. Or you could just be happy with what you have and live with it. I guess I like Ding Dongs the best out of all of the Hostess snacks because I never really liked Twinkies and Ding Dongs are just awesome. I never really ate Hostess products though because my mom would never buy them for me because apparently they're "unhealthy."
ReplyDeleteAmaia-I know absolutely nothing about labor unions. I think it's approritate to ask employees to take a pay cut when it's the only option next to closing down. If the company is asking just so upper ranked employees will get a fatter pay check or if the company cuts it so low it's not even worth going to work. I like their doughnuts because I have grown up eating them. I will be sad when. There's none left.
ReplyDeleteJacob_I know that the unions are groups of people that represent the working force. If the laborers think that there should be pay raises then instead of the workers going and talking to the managers to negotiate the terms they have the labor unions go and represent them. They unions are the voice of the laborers. I know that the laborers who are on the unions have to pay dues so that the union will represent them. I think that it is only okay for management to ask employees to take a pay cut if they are doing pay cuts across the board, including them. This might occur if the company was going through a bad time financially and they needed to cut spending. They could ask everybody, including themselves, to take a pay cut and decrease spending. I think that it is appropriate for the union to reject pay cuts if it is not to everybody. If the pay cut was just to a certain group of people than it would be acceptable for them to reject it. If the workers are just unhappy about pay cuts and it is administered to everybody than it isn't acceptable. I don't eat Hostess snacks. I think that they are really discussing and are not worth eating. Sometimes i will take a bite of something and say,"This tastes like cardboard." and eat it anyway. With a Hostess snack, I pick it up and say,"This tastes like deep fried fat filled with marshmallows. It is disgusting." I then proceed to drop it on the floor, stomp on it a few times, drop a bowling ball on it, and put it in a fire. Hostess snacks are probably one of the most disgusting things I have ever eaten.
ReplyDeleteNote:I learned about the labor unions from my dad. I asked him when i read the questions for this weeks blog. I didn't really know what the labor unions were but I was interested so I asked. Good topic Mr. G.
Audrey "ozzy" Worrell- I haven't really heard the term labor unions and I don't exactly know about pay cuts but ,um, if a pay cut is asked its because not enough buisness is going on at a certian point and the labor union would reject it because they don't see that low buisness area happening. I don't eat Hostess snacks really but I'll probly go with ding dongs.
ReplyDeleteDillon - I know that the Unions started in early 1900's, mostly for factories. In the beginning they were to negotiate with the industry about working hours, child labor laws, working conditions, and discrimination. So they started with the right idea. Then it turned negative. It started to become political. It did this because they had to elect certain law makers that would pass laws favorable to the unions. I think that it is totally ok to ask employees to take pay cuts in hard times. I think that it is ok that the unions reject the pay cuts, but it is stupid that they strike. Now their company is out of business. The employees have no hope finding a job in this economy. I don't have a farvorite hostess snack because I don't eat them.
ReplyDeleteNatalia- I dont really know what labor unions are at all.I think it is ok to to take pay cuts especially if the company is going bankrupt and has no other options to do. I think if the company has enough money to pay for their employees then thats ok for the union to reject pay cuts because otherwise there is no point in having people get paid less if they have enough money before they are completely out. I didnt really like any of the hostess snacks. I grew up eating them but havent had them for awhile but i never really liked them. i used to love twinkies but i dont anymore.
ReplyDeleteMatea- I don't know anything about labor unions. In some cases it is fine to take pay cuts. But it is unfair to some that work there because what if they need that money. Unions can reject cut pay cuts if they really need the money for something like if someone was in the hospital, but if they don't need the money then they could take the pay cuts. My favorite Hostess snack is Ding Dongs. I like them because they are really good.
ReplyDeleteEmma S- I really don't know anything about labor unions. I think it is right for people to assign pay cuts if a company is going out of business and the people running the company have to continue running it. That is really the only way for the company to stay in business. Being paid less is always better than having nothing, which sadly many people do. Although, if a company were to assign pay cuts when the company was perfectly fine with its business, the company is just trying to make more many for the people running it so it is okay to reject it. Also, some company's may show favoritism by giving some employees more than others which is not okay. So in that case you could also reject the pay cut. My favorite Hostess snack is probably their donuts because their yummy. It will be a bummer when the company goes out of business.
ReplyDeletebelle- i don't know anything about labor unions. i do think that if a company that you work for is going to go out of business its ok to pay cuts because honestly what other option do you have? paying cuts is better than not having a job anymore. its a really big bummer when a business this large goes out of business because so many people lose their jobs and they don't have money to pay for things the need until they find another job. another downside of this is that this company has been around for so long and it is now ending. my favorite hostess snack is wonder bread because its the best!
ReplyDeleteRaphie- I know labor unions are organizations of individuals who represent those who provide a product or service. They are the ones who go to companies or services to state the workers they represent needs. I think that the only time it is appropriate for management to ask their workers to take a pay-cut, is when that certain business is financially insecure and needs more profit to stay open. I also think that the appropriate time for labor unions to reject pay-cuts, is when the pay-cut is so large it wouldn't be worth going back to work. My favorite Hostess snack is zingers because they are pretty much Twinkies with more frosting on top.
ReplyDeleteGabi- Honesty I don't know anything about labor unions. I think that it is appropriate to have payouts under certain circumstances, like this. It is a payout or lose your job and I personally would rather have pay cuts than have no job at all. It is awful that all these people are going to lose their jobs, and it is sad when a business that is so big like this one goes out of business. My favorite hostess snack is wonder bread because it is really yummy for sandwiches :)
ReplyDeleteRyan- I dont know anything about or what labor unions are. I think it is appropriate to cut the employees permeant under there circumstances. Since they were going out of business they need to cut money to try to keep the company as long as they could. I think that conditions that make it so that the unions can reduce the payment is because they really had no other choices at the time. Im favorite snack of there's would probably the mini donuts . They were something that I grew up on.
ReplyDeleteKordell Seidler
ReplyDeleteI really don't know what a labor union is. I think its when they drop the employees. I think when you are going out of business you fire people so you get money to try to keep up or not go bankrupt, they try this for a long time to keep there company as long as they can. The conditions i think that they should lower the pay on the employees because this was there only choice. My favorite snack is...... I really didn't have a favorite snack because i didn't really eat them.
Aaron- i dont know anything about labor unions. I'm guessing they have to do with something about labor???? i think it is appropriate to lower payments when you are losing more than you are earning. i think it shouldn't be allowed for the union to reject it. and i don't really have a favorite snack because i didn't really eat them.
ReplyDeleteAaron- i dont know anything about labor unions. I'm guessing they have to do with something about labor???? i think it is appropriate to lower payments when you are losing more than you are earning. i think it shouldn't be allowed for the union to reject it. and i don't really have a favorite snack because i didn't really eat them.
ReplyDeletedan- A labor union is a support group/organization that help repersent a product. The conditions for lowering payments would be if they are not selling the product well enough to pay them what they are regularly paid. My favorite is ding dongs because kordell brings them in lots of days and he would usually give me some. Boy i would enjoy it with its white cream on the inside and its soft tender chocolate on the outside. Jut thinking about it if feel like im in heaven. Thankyou kordell thankyou
ReplyDeleteVIN-VIN-
ReplyDelete~A labor union is a organization of people who come together and advocate for laborers. I think that the conditions have to be in an unproductive state. So there has to be a drought in the system and the company has do be doing bad. Before you ask someone to take a pay cut I think that you need to inform the company that they are not doing well and tell them that they are going to be asking for pay cuts. I think that the conditions to reject pay cuts are if you now that the company is doing well and that they person whom is asking you just wants more money. Also if your family isn't doing well. My favorite Hostess snack is ding-dongs because I have never tried any other Hostess snack.
Abby- i don't really know what a labor union is. in some ways i think it is appropriate to pay cuts. one because i would rather pay cuts then lose my job and get no money at all. also i would rather pay cuts then lose my job because right now it is really hard to get a job in this economy and i would rather pay cuts so that i can have at least some money to pay for food and clothes. my favorite Hostess brand is probably be ding dongs.
ReplyDeleterobert- With labor unions I barely know what they are. I've heard the term before. Companies at some point have to make cuts due to the economy and or circumstances where there isn't enough revenue being generated either by their product or marketing plans.Pay cuts are necessary so no I don't think its right tho reject pay cuts. It's all about the money flow in and out of the business if you don't keep it in check your business fails
ReplyDeleteand the potential customers are let down by your inability to give them a product they want :( no.... I don't like hostess products.
I think that a laybor union is when the people decied when to strike or fight for their rights.I honestly think it is ok to cut pay,the people working might become mad but a pay cut is alot better that the place going out of buisnes and then the person would loose their job.I think that it is always fine to cut pay,i would much rather have the company stay in buisness that to go bankrupt **CODY**
ReplyDeleteSENA!!!! I haven't really heard about labor unions before. The only thing I know about them is that they are representatives of the workers. I believe the only time that it is appropriate to lower pay is if the company is otherwise going to go out of business. I think if the company is just being selfish and they are saving more money for themselves it should be rejected. However, right now we need as many jobs as possible. My favorite are twinkies because its fun to say. Because my mother is a dietitian I never get them.... :(
ReplyDeletePeter - I don't know much about labor unions, but I know that labor is work, and a union is a collection of people. I'm guessing that a labor union is a collection of people that come together to speak for the company. I think that the only way that a company should accept a paycut is if the whole company comes together and decides that they are willing to accept the cut for the good of the company. They should not accept a paycut if the only reason it is being proposed is because the bosses want them to take a cut. My favorite Hostess snack is probably deep fried twinkie, but those are very bad for you. I also like HoHos and Ding Dongs. What's your favorite Hostess snack Mr. G?
ReplyDeleteCaleigh- Umm I'm confused about them because most people think they are good while others are like they are so great and I don't know much about them so i can't really judge. I think its acceptable only if its a really slow/Hard month not if the CEO or whoever wants a bigger paycheck. I like the hostess cupcakes but i just usually eat the top off of them:).
ReplyDeleteKatie H.- I don't know anything about labor unions. I'm still really confused about why Hostess is going out of business, so I don't really now what to say about the labor union. I never ate any Hostess products so I don't really have a favorite. :/
ReplyDeleteEMMA GRANT- I dont know anything about labor unions. So I cant say anything about that. I really dont think that a manager should tell their employees to take less money. Everyone is working to help them selves and their families and this hurts them and you if you ask them. I also dont think that its ok for the union to take money either. Again i dont know what a labor union is but they still shouldnt be taking your hard earned money. My favorite snake would be the Twinkies because I love the name and the taste.
ReplyDeleteStephanie- I don't know much about labor unions but i know that its the people who fight for your rights like their jobs and more money and healthcare. I think it is unfare that so many people are losing their jobs because they are going out of business. I think the manager can cut down on the pay of some of his employees and try and save money, if really nesassairy. I think the union can cut pay if they really need to. I don't really like the Hostess treats, so I don't have a favorite.
ReplyDelete