Yesterday the union went into mediation with Hostess company officials with hopes to salvage 18,000 union jobs. The maker of Twinkies and Ding Dongs said late today that it failed to reach an agreement with its second biggest union. As a result, Hostess plans on continuing with a hearing on Wednesday on which a bankruptcy court judge will decide if the company can shutter its operations. The renewed talks between Hostess and the Bakery, Confectionary, Tobacco Workers, and Grain Millers International Union came after the company declared last week that it could move to wind down its business and start selling off its assets in bankruptcy court. The company cited a crippling strike on November 9 by the union, which represents about 30% of its Hostess workers.
Hostess shut down its three dozen plants late last week after it said the strike by the baker's union hurt its ability to maintain normal production. The baker's union stated that the company's demise was the result of years of mismanagement and workers have made steep concessions over the years. Hostess, which has been weighed down by management turmoil, rising labor costs, and changing tastes of Americans, is making its second trip through Chapter 11 bankruptcy restructuring. Click on the above link from the NY Daily News to read the full story.
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