Twinkies Still Alive: Hostess, Union Agree to Talk
Bankruptcy judge tells them to enter mediation
By Newser Editors and Wire Services
Posted Nov 19, 2012 2:43 PM CST
A Hostess Twinkies sign is shown at the Utah Hostess plant in Ogden, Utah, in this Nov. 15, 2012, file photo.   (AP Photo/Rick Bowmer)

(Newser) – Twinkies won't die that easily after all. Hostess Brands Inc. and its second largest union will go into mediation to try and resolve their differences, meaning the company won't go out of business just yet. The news came today after Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week. The bankruptcy judge hearing the case said today that the parties haven't gone through the critical step of mediation and asked the lawyer for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, which has been on strike since Nov. 9, to ask if the union would agree to participate.

The judge noted that the bakery union, which represents about 30% of Hostess workers, went on strike after rejecting the company's latest contract offer, even though it never filed an objection to it. "Many people, myself included, have serious questions as to the logic behind this strike," said Judge Robert Drain, who heard the case in the US Bankruptcy Court in the Southern District of New York in White Plains, NY. "Not to have gone through that step leaves a huge question mark in this case." Hostess and the union agreed to mediation talks, which are expected to begin the process tomorrow.

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Showing 3 of 48 comments
Imhotep
Nov 20, 2012 7:22 AM CST
If they don't resolve their differences the Chinese will buy the plant, move it lock, stock and barrel to China and export the crap back to the US and still make a profit. With the cigarettes and the twinkies they'll be dropping like flies.
Mr.LarryG.
Nov 19, 2012 9:16 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,,,,,,
OuttaHere
Nov 19, 2012 8:33 PM CST
Night of the Living Dead Twinkies