I was pretty sure that Hostess CEO's and holders had no intention of bargaining, and simply went through the motions to placate a judge, intending to eject the workers and proceed to restart the company with reduced debt and costs, as is the BAINful way.
Here's a little rant I came across on CL -
CorpoRATe welfare kills twinkie (anywhere)
Date: 2012-11-18, 3:05PM CST
Reply to: email@example.com
Vulture Capitalism ate Twinkies.....not the unions!!!!
That's 18K skilled workers out of work thanks to some speculators who know how to use the Reagan Era deregulation. In this case the one where you can take out a loan by using the equity in the company you're buying. At this point there the new owners have to make a decision. Do you keep the company and run it (venture)? OR run it into the ground, sell off the assets and declare bankruptcy (vulture)? OR take a loan out then make the company pay it back in which case you bankrupt it (another vulture approach).
The closing of the Hostess plants in Cincinnati, Seattle and St. Louis appears to be an object lesson in the evils of vulture capitalism.
Hostess is owned by Ripplewood Holdings, a vulture capital firm, and two hedge funds, Silver Point Capital and Monarch Alternative Capital. As is typical for such parasites, they have loaded the company with debt and are slashing employment and benefits to maintain their profits.
According the union's fact sheet, Hostess has demanded a bankruptcy court allow:
"An immediate 8% wage reduction;
The shift of at least 20% more health care costs onto its employees;
Elimination of the employees' W-1 (retiree medigap insurance) and P-Plan (a pension supplement used to pay health and funeral costs);
Closure of additional plants (10-12), refusing to tell the union which plants are profitable, which plants will be closed, why, etc.
Elimination of the eight-hour work day."
"Outside of court, Hostess unilaterally stopped paying its pension obligations (that is its hourly contributions to the workers' pension funds), in violation of federal labor law.
These outrages must be stopped. The Hostess workers are standing strong against predatory capitalism for the rights of all American worker. They deserve every patriotic American's full support.
The fact that you can take out a loan based on the assets you'll have from the product of that loan doesn't make sense to me. But it does explain the economic meltdowns we've seen. It takes time to mess up the world economy that much and will take time to fix it. Glad we're on the right track now.
Also - here is a video I cannot view - so I have no idea of it is pro or con worker, maybe someone can let me know later...