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The End of the Twinkie Era — Who is to Blame?

Hostess is going out of business, taking its popular baked goods and thousands of jobs with it. Who is responsible for the demise of this lunch box legend?

 

Fans of Hostess Twinkies, Ho Hos and Ding Dongs are going to have to find new fixes before much longer. The Texas-based company has announced it plans to call it quits. Tuesday is expected to be the last day.

The move comes on the heels of a national worker strike and may impact an estimated 18,500 jobs across America. The company filed for Chapter 11 bankruptcy protection earlier this year.

“Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs,” a company press release stated, according to the Huffington Post.

On its website, Hostess said, "We are sorry to announce that Hostess Brands, Inc. has been forced by a Bakers Union strike to shut down all operations and sell all company assets."

Frank Hurt, president of the Bakers Union, however, blames bad business practices for the demise of Hostess Twinkies, not the union.

Who do you think is responsible? Tell us in the comments section below. 

Related Topics: The End of the Twinkie

Mr. B

9:11 am on Sunday, November 18, 2012

I heard the CEO say that there was enough blame to go around to all. However, he did state that the refusal of the Bakers Union to even consider options was the final straw. I assume the union is happy, they got their way. They didn't let management push them around. I wonder how long it will take them to realize they don't have a job.

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LFP

1:55 pm on Monday, November 19, 2012

The final straw in a bale is about 1/100,000 of the problem, so why is it the only element getting the press and talk?

Of course the CEO is saying there's plenty of blame to go around. He wants help shouldering it. Do you have any idea how much money a CEO of a company this size gets and why? They're paid to make sure all hell doesn't break loose, and to take the responsiblity if they fail to do so. I hope the share holders understand how it works, and hold the right guy responsible. It takes two parties to negotiate, so even if that last straw belongs to the union issue, the straw has two ends, and management is one of them. And don't tell me the union wouldnt budge. I've worked as a negotiator (not related to unions). that is the whole point to negotiating - to give the other party incentive to budge.

Cindy Stovall

9:41 am on Sunday, November 18, 2012

I wonder how many of the upper management refused to take a pay cut/pension cut/and benefits cut. They had already filed for bankruptcy protection,so you can not blame the demise solely on the unions firm stand. Not all unions are bad ,nor greedy. I've already seen people blaming it on Obama.People need to educate themselves on all facts before jumping on a bashing bandwagon.

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Deb P

9:54 am on Sunday, November 18, 2012

The company and the Teamsters had an agreement - the Baker's Union refused to agree. The company said if they (Baker's Union) didn't compromise, they would have to close doors. I don't think the Baker's Union believe them. It is sad that such a small union was unwilling to compromise and now 18,500 people are going to lose their jobs.

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Tammy Osier

10:14 am on Sunday, November 18, 2012

They need to come South to a right to work state (like Georgia). I guarantee you they could make a good living here! We were raised on that stuff! lol

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Mr. B

11:41 am on Sunday, November 18, 2012

They are based in TX. Right to work didn't have anything to do with it. Letting the unions in years ago is the problem. I will agree with the concept that all unions aren't bad (even though I don't know of any.) But unions, being greedy organizations with no real concern for their members lead to things like this. Almost 20K jobs gone. For what? So the workers can stand up and say....well, we sure showed them!! My guess is upper management didn't want to lose their jobs either but even if they worked for free, it wouldn't be enough to save this company. Sorta like the Dems insistence to tax the rich to reduce the debt. There aren't enough rich to reduce the debt.
But, I've never had a Twinkie so I won't miss them. Although I suddenly have a craving to taste one now that they are going away.

Karen

10:28 am on Sunday, November 18, 2012

I think the Bakers union is to blame. I doubt they would come to GA. Surely they would choose a state with a better tax structure - FL, TN, etc

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paul

10:35 am on Sunday, November 18, 2012

I for one am overjoyed at the twinkies demise. Something that does not mold or decay and could probably outlive a nuclear horror with the cockroaches needs to go far away. Oh and take your cheap ass non nutitional garbage wonder bread with you

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R++ - One of the famous "Dacula Crew"

6:06 pm on Sunday, November 18, 2012

GOOD Point,
Union foolishness killed something that a nuclear holocaust couldn't.

But the Twinkies may indeed live on after the brand is purchased by Beebo, a Mexican firm...

Unions off-shoring jobs ...
BRILLIANT!

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LFP

5:25 pm on Monday, November 19, 2012

I'm 100% with you - it's garbage that has no business in the food chain. My comments are only about the blaming of the workers simly because they're in a union ( which they have no choice but to be in anyway).

As for R's comment - I saw a museum exhibit on lead hazards at the Mutter museum in Philadelphia. It outright said never eat candies from Mexico because they're loaded with lead. There was a large display of candy with the ratings. I can see why this type product would appeal to a company from a country that has no safety standards to speak of.

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R++ - One of the famous "Dacula Crew"

9:40 pm on Monday, November 19, 2012

BUT they WILL have access to FREE transportation north if they do move, one box at a time distributed in the USA out of Phoenix Az.

Turn in an unopened box of Twinkies and get a free FEDERAL Work Permit …

Talk about the teeming shores…
(of the Rio Grande)

Tammy Osier

10:49 am on Sunday, November 18, 2012

Well Paul, maybe they could make a new product that has some amount of nutrition, although anything processed has none. While I was raised on the stuff, I don't partake today nor do I give them to my grandchildren. In fact, we're kind of in a non-processed snack phase right now so that hopefully, the next generation will learn better health habits.
If Hostess Company could take advantage of the war on obesity and find something that tastes good yet is nutritious, they might find a new market.
Of course, you and I both know that won't change anything. Until most people have health problems, they won't change. It's just sad that they don't at least try to change it for their children.

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r patton

12:09 pm on Sunday, November 18, 2012

NOT all the union workers lost their jobs. The President of that Baker's Union keeps his $200,000+ a year job, as a union boss, and just moves on to another "Boss" position in another union slot. One day these folks will realize unions are killing this country.

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Mr. B

5:11 pm on Sunday, November 18, 2012

You're right Mr. Patton. Unions just see labor as a source of dues. Then when they tell the workers to strike and jobs are lost, the unions just say...oh well, at least we didn't let them push us around. Then move on to the next group of suckers and make empty promises to get them signed up.

Joe Costyn

4:58 pm on Sunday, November 18, 2012

Many years ago at the grand opening of the Kmart on the Atlanta highway we sold over 30,000 Twinkies in less than a week!

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workerbob

7:38 pm on Sunday, November 18, 2012

PRO UNION here need all the help I can get.

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LFP

12:00 pm on Monday, November 19, 2012

All you people who are so eager to believe the CEO of the company as he puts all the blame on the lowest level of workers instead of accepting that it was HIS leadership and top level of workers: you need to stop fancying yourself as members of the ruling class and educate yourself on the facts of this company. Hostss has declared bankruptcy twice in the past 8 years. It's poorly run, by a chump who points the fingers on the employees who actually earn their pay. As for unions, I'm no great fan of them myself, but they would not exist, and never would have developed, if corporations treated their workers with basic human respect.

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R++ - One of the famous "Dacula Crew"

9:43 pm on Monday, November 19, 2012

Yes the CEO put in bankruptcy - the union shut off the life support...

ATL - GA

12:38 pm on Monday, November 19, 2012

ATL,
Problems are always deeper than what the surface can show you, many of have made assumptions - the Union is the problem the management is the problem. Simple, these are very bad times for many corporations, and ones that are already having difficulty, well it's even worse. I don't care for most unions for one reason, the union does not care about the individual, even though that is what they sell. It is all about power, honestly why would you sell out 18,500 co-workers to prove what. That is stupidity, that is union. Yup, the bosses move on to another group, the individual needs to start thinking and questioning the bosses, both the corporate boss and the union boss. Too many jobs have been lost because of unions, I feel sorry for the guy who just doesn't have a clue.

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LFP

1:49 pm on Monday, November 19, 2012

The management IS the problem. Hostess has not kept up with the times - has not introduced a single product that reflects the entire nation's several decades old desire for healthier products. They have relied on their old prodcts to carry them into the future, and when it failed ( and they decared bankruptcy) and were bailed out, they still didn't learn, and they still didn't change. Take the union out of the equation and you still have the same core problem to the same degree. The fact that the workers had a union that was predatory against them, while reprehensible in it's own right is irrelevant because had the company been well run they would not have needed to ask their workers to take a pay cut.

In all the years Hostess was in business, the workers had no say in how the company was run. Blaming them now, with the water not only under the bridge but all the way out to sea, is outrageous. Who bailed this company out 8 years ago, when they first declared bankruptcy, and how many smaller but better run companies weren't given the same help, because they're not huge corporations?

I say let the big guys ALL fall, and let's start over with reasonably sized companies that still have to put effort into succeeding.

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R++ - One of the famous "Dacula Crew"

9:20 pm on Wednesday, November 21, 2012

I bet HOSSTESS would have had a better ROI from the taxpayers point of view than Solyndra...

PLEASE create an edit feature ...

joan craig

1:33 pm on Monday, November 19, 2012

"As the company was asking for more givebacks from workers, a group of creditors said in court papers that the company “may have manipulated its executives’ salaries higher in the months leading up to its Chapter 11 filing,” again according to the WSJ. According to the creditors’ court filing, the following Hostess executives saw substantial salary increases in July 2011:

■Brian Driscoll, CEO, from around $750,000 to $2,550,000
■Gary Wandscheider, EVP, $500,000 to $900,000
■John Stewart, EVP, $400,000 to $700,000
■David Loeser, EVP, $375,000 to $656,256
■Kent Magill, EVP, $375,000 to $656,256
■Richard Seban, EVP, $375,00o to $656,256
■John Akeson, SVP, $300,000 to $480,000
■Steven Birgfeld, SVP, $240,000 to $360,000
■Martha Ross, SVP, $240,000 to $360,000
■Rob Kissick, SVP, $182,000 t0 $273,008"

http://dailynewsfinder.com/2012/11/17/everything-you-probably-didnt-know-about-the-hostess-brands-story/

The article above sites many examples of poor management and/or poor decisions that have been made in the past 10 years that caused the demise of this company.

By the way, I have never been in a union, but I was in management for 28 years working with union employees.

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LFP

3:00 pm on Monday, November 19, 2012

Yup - I smelled that all over this story. I was in a union decades ago for 18 months and watched the union work us over from one side and the management from the other, so I'm no supporter of them. However, I was raised by a historian, and am a well versed on labor history so I understand how they came about and the great good they did at one time. The problem is they've now become an entity of their own and like the factory owners they once fought, now care about no one but themselves.

My own business background is in upper management, but my philosophy has always been that a workforce is a TEAM and everyone deserves respect and a fair wage for the work they do. When I owned my own company, I had a policy that any time an employee needed a day off, they could have it, no questions asked. The payback for that small measure of kindness was enormous. No one ever once abused the policy and it had a psychological effect on people that made them work really hard for me. It's such a no brainer to me, and yet it's incredibly rare to see a proper give and take relationship in a business. I don't care what anyone says; in businesses and schools, the people at the top set the tone, and that is why you get whole companies and schools that are either decent or lousy.

Mitch

1:37 pm on Monday, November 19, 2012

If the Hostess CEO had an affair with Suzy Q, is it a Wonder why the Union boss called her a Ho Ho? The company’s upper management may be Ding Dongs but aren’t the union members acting like a bunch of Fruit Pies for throwing Sno Balls at the Twinkie makers? What I do know is that Little girl named Debbie down the street is one happy Zinger and is no longer the Mini Muffin of the snack industry.

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R++ - One of the famous "Dacula Crew"

9:50 pm on Monday, November 19, 2012

Yes there are other Tasty Kakes out there ...
Try your tea with a Krimpet?

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