A forum for all your cooking delights! Post up cooking horror stories, your favorite recipe's, questions, or anything else that relates to what happens in the kitchen!Wont SOMEBODY please think of the Twinkies!
Administrator
Joined: Oct 2002
Posts: 13,943
Likes: 0
From: ɯooɹpǝq ɹnoʎ
Vehicle: ǝdnoɔ sısǝuǝƃ
Senior Member
Joined: Jul 2011
Posts: 1,021
Likes: 1
From: Illinois
Vehicle: 2010 Genesis Coupe 2L track
From another forum.
Plenty of blame to go around here none the least of which is poor business decisions by management.
Who have no doubt feathered their nests in failure ala Bain Capital.
Hostesses sales were down 28% from 2004 levels, and they had been hit with huge increases in the costs of corn, sugar, and flower.
The interest on it's $1 billion in debt debt ranged between 8-15%
Part of that debt was aquired fending off a 2007 $580 million hostile takeover bid from its largest competitor.
The debt load was further increased when it was purchased by venture (vulture?) capital funds in 2009.
In 2009 unions gave huge concessions of $110 million in labor cost cuts.
(divide that by 18,000 employees.)
Earlier concessions from the Union prohibited them from striking, however
once Hostess was allowed to renege on an unfunded $2 billion pension plan the the unions were permitted to strike.
Who have no doubt feathered their nests in failure ala Bain Capital.
Hostesses sales were down 28% from 2004 levels, and they had been hit with huge increases in the costs of corn, sugar, and flower.
The interest on it's $1 billion in debt debt ranged between 8-15%
Part of that debt was aquired fending off a 2007 $580 million hostile takeover bid from its largest competitor.
The debt load was further increased when it was purchased by venture (vulture?) capital funds in 2009.
In 2009 unions gave huge concessions of $110 million in labor cost cuts.
(divide that by 18,000 employees.)
Earlier concessions from the Union prohibited them from striking, however
once Hostess was allowed to renege on an unfunded $2 billion pension plan the the unions were permitted to strike.
Administrator
Joined: Oct 2002
Posts: 13,943
Likes: 0
From: ɯooɹpǝq ɹnoʎ
Vehicle: ǝdnoɔ sısǝuǝƃ
Revenue was $2.5B in 2011, down only 2.3% from the prior year.
The pension plan seems to be the big nail in the coffin. Almost everyone (except unionized companies) have moved away from Pension plans. Especially with this economy, defined benefit plans are hard to manage.
I put blame on NY. I'm sure Hostess is banned there. Too much sugar says Mayor Bloomberg.
The pension plan seems to be the big nail in the coffin. Almost everyone (except unionized companies) have moved away from Pension plans. Especially with this economy, defined benefit plans are hard to manage.
I put blame on NY. I'm sure Hostess is banned there. Too much sugar says Mayor Bloomberg.
Senior Member
Joined: Jul 2011
Posts: 1,021
Likes: 1
From: Illinois
Vehicle: 2010 Genesis Coupe 2L track
Live in Chicago and work for $17? You can get that at Lowes.
Union members in Missouri make 48K per year and were only asked to take a temporary 8% wage cut and pickup 17% of their benefit package
Union members in Missouri make 48K per year and were only asked to take a temporary 8% wage cut and pickup 17% of their benefit package
Administrator
Joined: Oct 2002
Posts: 13,943
Likes: 0
From: ɯooɹpǝq ɹnoʎ
Vehicle: ǝdnoɔ sısǝuǝƃ
Found it, it was "dough mixers" making $17/hr. Also, this is on the Kansas/Missouri border, not Chicago.
My company runs warehouses. We pay ~$11.xx starting out and up to $15 I think. It's not heavy lifting or bad work environments, but it is a warehouse.
I guess some people were making significantly less than $17.
Which only leads to more concern over the mindset of people and the current economy / government incentive programs. "Why work when I can make more money on unemployment" - rather than "Why work here, when I can work at Lowe's and make more money?"
My company runs warehouses. We pay ~$11.xx starting out and up to $15 I think. It's not heavy lifting or bad work environments, but it is a warehouse.
I guess some people were making significantly less than $17.
"I don't want to lose my job. It's Christmas time," said 23-year-old Daniel Smith, who makes $11.64 an hour at the plant. "But if I have to take the cuts they're talking about I can get more from unemployment."
Senior Member
Joined: Mar 2008
Posts: 4,185
Likes: 0
From: Atlanta, GA
Vehicle: MC + RD2 + AW11 + 944 = 4x Win
Went over to Target on lunch and they were out of Twinkies. All other Hostess cakes still in plenty 'o supply, but Twinkies all gone. 
I'm SURE that there is enough back log of Twinkies in Hostess' massive warehouses and various global distribution centers to offset any production cuts from now until Hostess is inevitably purchased.
I'm SURE that there is enough back log of Twinkies in Hostess' massive warehouses and various global distribution centers to offset any production cuts from now until Hostess is inevitably purchased.
