The Twinkie, a Suicide

“The snack giant endured $52 million in workers’ comp claims in 2011, according to its bankruptcy filing this January. Hostess’s 372 collective-bargaining agreements required the company to maintain 80 different health and benefit plans, 40 pension plans and mandated a $31 million increase in wages and health care and other benefits for 2012.  Union work rules usually required cake and bread products to be delivered to a single retail location using two separate trucks. Drivers weren’t allowed to load their own vehicles, and the workers who loaded bread weren’t allowed to load cake. ‘Pull up’ employees moved products from back rooms to shelves.”

http://online.wsj.com/article/SB10001424127887324735104578123312646698662.html?mod=WSJ_Opinion_AboveLEFTTop

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Hostess, maker of Twinkies, to go out of business after nationwide strike

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“Hostess Brands Inc., the company that makes Twinkies and Wonder Bread, has asked a judge for permission to go out of business and lay off 18,500.  The company is blaming its decision to shut down on a labor strike by members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, but Americans’ appetite for junk food has been waning in recent years.  ‘We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,’ Gregory F. Rayburn, Hostess’ chief executive, said in a statement.”

http://www.latimes.com/business/money/la-fi-mo-hostess-to-go-out-of-buiness-20121116,0,3714808.post

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