Hostess Brands, manufacturer of the iconic Twinkie, is in a bit of a predicament. The company filed for Chapter 11 bankruptcy in 2004, emerging in 2009, after rounds of restructuring and concessions taken by union and non-union employees (Flahardy, 2012). In the face of the recent recession and increasing commodities pricing, the company has yet again filed for bankruptcy protection (By & Spector, 2012). In addition, the company has been engaged in collective bargaining with its two major unions, the Teamsters Union and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), hoping for more concessions from employees to help it survive. Combined, these unions represent …show more content…
In October, Hostess went to court, requesting that the court impose the contract on the union. The courts did this. BCTGM Union leaders have stated publicly that if wage concessions begin, the union will strike (Kinney, 2012). Hostess returned this challenge by stating if strikes occur, the company will shut operations and begin selling assets (Feintzeig, 2012). So the stalemate begins. With wage concessions set to begin very soon, we will see who is calling whose bluff. It seems to me that the outcome for either party will be unfortunate. The relationship between company and union appears to be a war instead of a partnership. Because of this, neither side will prosper. It is overwhelming to me, from my reading, the lack of trust between all groups involved. Most have speculated that the union was waiting on the election for action. A strike by BCTGM members has already been authorized (Kossman, 2012). The fate of a company, 19,000 jobs and the Twinkie hang in the balance. References
Flahardy, C. (2012). Hostess files for bankruptcy ... again. Inside Counsel. Breaking News, Retrieved from http://library3.webster.edu/docview/1020991581?accountid=14944.
By, J. J., & Spector, M. (2012). At hostess, a battle over sharing pain. LBO Wire, Retrieved from http://library3.webster.edu/docview/964204461?accountid=14944. Feintzeig, R. (2012, Feb 14). Teamsters act tough with twinkies maker. Wall Street