SEARCH
Hostess Bankruptcy Filing Hits 5,000 BCTGM Members
Hostess Brands, the company that has brought us such iconically American snacks as Twinkies, yesterday filed for bankruptcy protection for the second time since 2004. But the move does more than affect our universal sweet tooth—it has vast repercussions for some 5,000 workers, members of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM).
BCTGM, which represents workers in 34 production facilities throughout the United States, has been working with Hostess for months to identify a mutually beneficial solution that would address the company’s financial difficulties. But according to BCTGM, the company has never offered a legitimate proposal that could be taken to the membership for consideration.
Says BCTGM President Frank Hurt:
I find it deeply offensive and highly disingenuous for the company to claim that its financial woes are the result of its union contracts and pension and health coverage obligations. We contend that the company is in dire financial shape because of a string of failed business decisions made by a series of ineffective executives who have been running this company for the past decade.
In 2004, union members sacrificed to help make the company competitive, hoping the company would emerge from the last restructuring stronger and more competitive, says Hurt.
Hurt points out that the company’s portrayal in the media of its pension obligation problems is misleading. Hostess Brands had been a longstanding participant in a multi-employer (Taft-Hartley) pension fund. The nearly $1 billion the company refers to is its withdrawal liability. Every participant in multi-employer pension fund has withdrawal liability, which ensures that beneficiaries will receive negotiated pension benefits if a company leaves the fund.
The contributions Hostess had paid into the fund were negotiated through the collective bargaining process and are part of an overall economic compensation package. Pension benefits that retirees receive each month are paid by the fund and not the individual companies.
Hurt says the union will continue to work to find a solution that “protects the interests of our members and helps enable the company to remain a viable business entity.”
 |
Become a Fan on Facebook |  |
Follow Us on Twitter |  |
Subscribe to YouTube |  |
Subscribe to Blog RSS | ||||
5 Comments
Sorry, the comment form is closed at this time.
Usually in the past forty years, a corporate bankruptcy actually is the scheming re-organization of a commercial scam so that it escapes its obligations and encumberments to start completely over without any of the previous obligations it had to obey.
On a union contract and government subsidy plank of consideration, you can easily understand what I mean by that.
What I mean by that is, today a corporate bankruptcy usually has less to do with a business being unable to be successful in its honest business operations and more to do with book-keeping strategies no different from Enron… except like Leona Helmsley, Enron got caught! These bankruptcies tend to cover over the facts that the bankruptcies were the intentional strategy to make monies-ill-gotten through “not-Accepted Accounting Practices”.
I am sad to read that Hostess is in Chapter 11 again. I’ve been eating Hostess & Drakes Cakes for over 50 years. While I’ll miss Hostess, as a union person, I’ll support the Hostess workers what ever happens.
So many union sisters and brothers have given so much and the
companies have failed I think workers should run companies. They could not do any worst.
I did 32 years in a union bakery. Bakers work their asses off in a lot of the jobs in the bakeries. In addition to the hard work, their is debilitating heat, danger of serious burns, cuts, crushes and all kinds of hazards associated with speedy production lines. My heart goes out to my brothers and sisters. I was fortunate enough to get to a Golden 80 retirement. Many thanks to the negotiators of those retirement benefits. Now, lets’ investigate and see if twinkies is really dinking us.