Judge orders Hostess to mediate with union

A Hostess Twinkies sign is shown at the company's plant in Ogden, Utah, in this Nov. 15, 2012, file photo. / AP Photo/Rick Bowmer

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 Irving, Texas-based company won't go out of business just yet. The news came Monday after Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week.

• Twinkies maker Hostess going out of business
• Hostess closure sparks Twinkies rush
• Crave a Twinkie? The price is going up fast online?

Play Video

Twinkies likely staying on store shelves

The bankruptcy judge hearing the case says that the parties haven't gone through the critical step of mediation and asked the lawyer for the bakery's union to ask his client, who wasn't present, if he would agree to participate.

The case is being heard by the U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y.

Hostess, founded in 1930, said Nov. 16 it is going out of business and laying off all of its 18,500 workers after a national strike crippled its operations. The privately held Texas company filed for protection in January, its second trip through bankruptcy court in less than a decade. 

Play Video

Hostess going out of business

The company's planned liquidation would result in the closure of 33 bakeries, 565 distribution centers and 570 bakery outlet stores, according to Hostess.

Thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting in September a contract offer that cut wages and benefits. Hostess had already reached a contract agreement with its largest union, the International Brotherhood of Teamsters.

"Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," CEO Gregory F. Rayburn said in a letter to employees last week.

[AOCGUY]

littleredtop replies: Yes, this is now an Obamnation where the labor unions rule. Get used to it because it unfortunately isn't going away anytime soon.

You must be right, unions never struck before Obama came into office. The first eight years of this century were paradise, workers and management worked together in harmony.

[chevyhotrod]

antoniof123 replies: Bisitrubyfalls yes they were offering 25% ownership at a premium of what the company is worth and notice 25% meaning they would not be in control of the company.Meet the new boss same as the old boss.

______________________

So, you think the owners should be forced to hand owernship and control over to the unions?

Is this what American's have to look forward too? Work for 30-40 years creating a company and then be forced to turn the owership and control over to the workers?

Are you saying the ownership should never have control of their company?

[jimatmadison]

The vulture management gave themselves 60%-300% pay raises, then pled poverty when it came to the workers and demanded huge sacrifices from where they had been.

The CEO is paying himself over $2 Million. If the company is failing under his leadership, how is this justified???

Greedy workers aren't threatening Hostess' future.

They were Bained.

[antoniof123]

Well, in his little mind it is. He thinks he is worth it and as long as there are people who agree with him like many loyal followers of insane management then he will get it.

[Scimajor]

This simple fact that almost everyone on both sides of the argument are missing is that there needs to be a balance between the power of the corporation and the power of the unions. Both groups will abuse their power if the pendulum sways too far in their favor.

You can't simply eliminate unions unless you want a repeat of something like the Triangle Shirtwaist Factory fire. Unions DO, however, need to have their power controlled in similar fashion to restrictions on the power of the corporations.

[zebra8835]

If you "go broke" selling iconic brands like these, it would make you think something is amiss in management. Obviously, the numbers have to work and the union knows that. I'm sure there has been a large reduction in sales numbers with everyone watching their weight and trying to eat healthier, especially with the obesity of young children these days. If they have to reduce employees by 10% and work harder and make work rule changes, at least 90% would still have good paying jobs with benefits. Hats off to the judge for having better sense.

[aintfakin]

phwtb100 replies:
linkicon reporticon emailicon
What's with the idiotic right wing crap comment?
These members are nothing but sheep being lead to slaughter just like the auto workers. Truth is the "UNION" doesn't give a crap whether you have a job or not. They only care about their own bank accounts and how fast they can fill them to overflowing.
---------------------------------------------
Thanks for proving my point about idiotic right wingers.
You would be a heck of a lot more accurate if you stuck "management" in your diatribe everywhere you said "union"
The fact that you think they are all sheep comes from your "management attitude.
I have had union friends buck the union and not participate is strikes when they thought the union was overbearing. I have also had friends who struck because the compensation for their work was so lousy it didn't make any difference if they lost their jobs or not.
Well all you right wing idiots are so locked in concrete you cant see any differences. You dont want to see any differences. Its like Jack Nicholson said in "A Few Good Men"....you cant handle the truth.
The overwhelming in this situation is that management has been a bad actor now for sometime.
But you idiotic right wingers will always say all Unions are evil when they are just a counterpart to management in a free market system.
Muslims have more open minds than a lot of the right wingers in this country
Give my regards to Flimbaugh

[visitrubyfalls]

Are you aware of all the costly restraints the unions demanded of Hostess? One is that bread and cakes could not be delivered in the same truck. So two half full trucks would be needed. Doubling the cost. But if someone doesn't know of the union rule, they would blame bad management.

[halvie54]

Twinkies, Ding Dongs and Ho Hos! Have I stumbled onto a Petraeus site?

[nbcnews]

Watch Obama step in to save the company.

[matt6052]

They killed the goose that lays the golden eggs. Unions will always do it, except public employee unions-- when they over-reach, government just taxes more.

[GhostF1ghter]

Ba ha ha. They had ben overbaking junk food for 10 years, at the expense of their investors.

The union didn't kill Twinkie the Kid. Anti-ADHD, childhood obesity and juvenile diabetes campaigns did.

[retmw1]

They killed the goose that lays the golden eggs, you must be talking about the management since they have been taking and giving up nothing.

[usronny99]

I don't understand, why people think of a either or train of thought. There is the possibility of the employees buying the company. If someone would just suggest it. In today's society someone may be willing to step up and finance the buyout. The union could be a pivotal part of new era of employee owned businesses.

[visitrubyfalls]

Hostess was offering the unions 25% ownership in the company. And 2 seats on the board.

[antoniof123]

Bisitrubyfalls yes they were offering 25% ownership at a premium of what the company is worth and notice 25% meaning they would not be in control of the company.

Meet the new boss same as the old boss.