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Saturday, April 27, 2013

Hostess looking to get back in business, sans the union employees

More at HotAir:

Last fall, Hostess tried to readjust their struggling business model and keep the company (along with its 19,000-strong workforce) going strong by closing a few factories and downsizing workers’ wages and benefits — and the bakers’ union to which a big chunk of the Hostess workforce belonged didn’t like that all. Their resulting strike turned out to be a suicide mission, however; the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union might have thought they were calling the company’s bluff, but Hostess really could not afford to keep up the bloated pay structure, and the settlement failure meant liquidation and a whole lot of layoffs.

Now, a buyout firm is looking to put Hostess’s bankrupt assets back into business; Ed mentioned yesterday that at least one plant should be up and running by July, and they’re planning on re-opening several other plants in short order — but they’re trying to do it without the union contract this time.

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