http://finance.yahoo.com/news/twinkies-maker-hostess-seeks-bankruptcy-132215604.html
It's sad! It's just really, really sad! Even TWINKIES can't escape the unrelenting rising costs of the union's pension and health care. Per the above reference:
"In its filing with the U.S. Bankruptcy Court for the Southern District of New York, Hostess disclosed that its biggest unsecured creditor is the Bakery & Confectionary Union & Industry International Pension Fund, which it owes approximately $944.2 million.
Its second-largest unsecured creditor, Central States, Southeast and Southwest Areas Pension Plan is owed far less, about $11.8 million."
It's a very sad day when 19,000 people will fall prey to the union's rising pension costs and health care costs. Sometimes there needs to be ALOT of give and take in order to save ALOT of people.
Today---go have some Twinkies! It's a little "bite" of Americana that we may lose due to the economy! Enjoy it while you can.
Maybe it is cause I haven't had a tweekie sense high school.
ReplyDeleteI use to stop at Marweedles buy tweeties and a soda or chocolate milk.
We'll all be the better for it. Maybe more of the obesity contributing businesses should go belly up!
ReplyDelete#2, I imagine you'd have a different opinion if you were either IN that union or worked there and only had a year to go to retire. 19,000 potentially out of a job isn't a good thing for the United States, the economy, farmers who supply flour, sugar and other ingredients to the company. Forget about obesity... this is about an economic epidemic.
ReplyDeleteOk I love Twinkies although I haven't had one in at least a year. I'm going to have to eat one a day for the rest of my life, I'm willing to make the ultimate sacrifice for my beloved twinkies....LOL
ReplyDeleteSlogan: Kill yourself to help save a twinkie
I agree with 2.
ReplyDeleteIrony = Hostess (Twinkies, Ding Dongs, Ho Hos and Sno Balls) blaming their problems on health care costs.
Did the numbers on the comments disappear, or is it MY computer?
ReplyDeletepension cost should not be a problem if it is set up as a locked pension(never borrowed from )my guess is the problems are self made and have little to do with the union itself
ReplyDeleteI worked for Hostess Brands for 5 years. Their problems include ill advised acquisitions and a failure to consolidate those acquisitions.
ReplyDeleteHostess Brands missed market changes and consummers' changing preferences by many years. Their bakeries tend to be older. With older technology they are inefficient and therefore more costly to operate. Hostess Brands does not generate enough profit to invest in their bakeries so they are stuck in a downward spiral.
I have been a trustee on several pension funds. I am unclear about what 3:20 PM is referencing.
It is the amount of Hostess Brands contributions on behalf of its employees as well as their health benefit costs that are part of the issue. Hostess Brands continues to loss market share and with changes in the industry they simply cannot raise prices high enough to cover their pension and health benefit costs.
I don't think it is fair or accurate to claim that unions are to blame for Hostess financial problems. Much like our town Hostess Brands has been saddled with, to quote Standard and Poors review of our credit worthiness, "mismanagement".
The article linked by Ann says "The company's biggest unsecured creditor is the Bakery & Confectionary Union & Industry International Pension Fund, which it owes about $944.2 million."
ReplyDeleteThis says to me that Hostess hasn't been funding the pensions.
Again, dump on the 99%ers.
Dear 6:52 AM:
ReplyDeleteThat amount owed is Hostess Brands unfunded withdrawal liability - not a current obligation. Space does not permit a full explanation but that is the amount Hostess Brands is estimated to owe if they withdrawal from the BCTGM pension fund.
It is highly probable that Hostess Brands is current with respect to its most recent employer contributions to the various pension funds.