Union: Twinkies Won't Die
Hostess in bankruptcy court today
By Rob Quinn, Newser Staff
Posted Nov 19, 2012 4:34 AM CST
Updated Nov 19, 2012 7:12 AM CST
Twinkies are likely to survive, even though their maker will be sold in bankruptcy court.    (AP Photo/Mark Lennihan, File)

(Newser) – The union that Hostess blames for its collapse says Twinkies and other iconic snacks will live on. Hostess will present its plan to shut down plants and sell off its business to a bankruptcy judge today, but the chief of the the Bakery, Confectionery, Tobacco Workers, and Grain Millers union says he believes a buyer will snap the brands up, the Wall Street Journal reports. "People are going crazy because they think they're not going to be able to get any Twinkies or Ho Hos or Wonder Bread," he says. "They'll be produced somewhere, some time, and by our members."

  • Hostess chief executive Gregory Rayburn, however, says that while the snacks may someday come back, the union can kiss those jobs goodbye forever. "Nobody wants to have anything to do with these old plants or these unions or these contracts," he says.
  • But hoarders may need to ration their supplies in the face of a long Twinkie-free period. "There's a huge amount of goodwill with the commercial brand name" so finding a buyer for the brand should be easy, a commercial bankruptcy expert tells the AP, but the liquidation and sale could take up to a year.
  • Is the union to blame for the demise of Hostess? Not according to Adam Hartung at Forbes, who says the collapse is the result of the company trying to sell the same old products with the same outdated business model for too many decades. "Labor, like other suppliers, has a 'market rate,'" he writes. "That management was unable to run a company which could pay the market rate for its labor is not the fault of the union."
  • Paul Krugman at the New York Times, meanwhile, links Hostess to today's economic debate. The company's collapse has awakened nostalgia for the "Twinkie Age" of the '50s, he writes, though many forget that it was an age when unions were much stronger, execs were paid a lot less, and the top rate of tax was no less than 91%. "America in the 1950s made the rich pay their fair share," he writes. "It gave workers the power to bargain for decent wages and benefits; yet contrary to right-wing propaganda then and now, it prospered."

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Showing 3 of 107 comments
Mr.LarryG.
Nov 19, 2012 8:34 PM CST
Executive Rayburn let out the dirty secret,,,"these old plants." meaning instead of investing in thecompany, they spent the profits on corporate jets, big bonuses, high salaries, top loaded management,,,,the competition with its new equipment is lowering costs driving the Ferrari while Hostess by not modernizing is driving the Model T. Whose operaing costs will be lower? of course they blame the union, neglecting the fact that pay concession, vacation give backs, and crewsize concessions were made in return of a promise of modernization, which never came about,,,,it happened in the steel industry too,,,,,the Americn way---blame the worker,,,,,,
Trixielolo77
Nov 19, 2012 6:52 PM CST
This world is definitely coming to an end! If I can't stuff my face with twinkies after a breakup, I will be forced to snort meth! Hostess twinkies were the only thing that made me smile after my heart was ripped out of my chest by taking a chance on love! DOOMED I TELL YOU, DOOMED!!!!
Jespersen
Nov 19, 2012 5:42 PM CST
Yeah!!! What is America without Hostess and their junk food.