Wednesday, November 14, 2012

Hostess Brands will seek liquidation unless unions stop striking.

Good going unions. Another American company going to get screwed by big labor.
Hostess Brands Inc said it will ask a U.S. bankruptcy judge for permission to liquidate if enough striking workers do not return to work by the end of Thursday to let the maker of Twinkies and Wonder Bread resume normal operations.

Wednesday's announcement escalates a bitter dispute between the 82-year-old company and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, whose members constitute about one-third of Hostess' nearly 18,000 employees.

Neither the union nor its president, Frank Hurt, immediately responded to requests for comment.

Workers at Hostess plants across the country had gone on strike or refused to cross picket lines on November 9 to protest court-ordered pay cuts. That prompted the company at the time to raise the specter of liquidation in case of a widespread strike.

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