WATCH: Live Coverage of Massive Tornado Damage Near Oklahoma City
Live BlazeCast at 2pm ET: The curious John Kerry Picture — plus your comments
UPDATED: Hostess & Union Agree to Mediation, Company Shutdown Temporarily Avoided
CNBC just a few moments ago tweeted the following:
BREAKING: Hostess and Bakers Union agree to mediation, preventing shut down.
— CNBC (@CNBC) November 19, 2012
If mediation leads to an agreement between the snack maker and the Bakers Union, it will mean that a) 18,000+ people just narrowly escaped joining the unemployment line and b) we ate all those Twinkies for nothing.
UPDATE — Lest there be some confusion, “mediation” doesn’t mean that a deal has been reached. It just means that both parties have agreed to sit down and hash out their differences.
“The news came Monday after Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week,” the Associated Press reports.
The bankruptcy judge hearing the case noted that neither party had gone through the critical step of mediation and suggested they do that before any further action be taken.
“Moving to a liquidation is also a significant economic hit, and I think that many people, myself included, have serious questions as to the logic behind the decision to strike and a concern that it may be as a result of differences as far as information and goals,” U.S. Bankruptcy Judge Robert Drain said on Monday.
“I’m giving the union, as well as the debtors and their lenders, the last chance,” he added.
Both parties agreed.
However, if both parties fail to come to an agreement, the bankruptcy hearing will resume Wednesday at 11 a.m ET.
UPDATE II — Hostess CEO Gregory Rayburn weighs in on the news [via the AP]:
… Rayburn said that there is enormous financial pressure to come to an agreement with the union by the end of the day Tuesday. He noted that it’s costing Hostess about $1 million a day in payroll costs alone to keep the company alive.
“We didn’t think we had a runway, but the judge just created a 24-hour runway,” said Rayburn, who added that even if a contract agreement is reached, it’s unclear whether all 33 Hostess plants operate again.
Follow Becket Adams (@BecketAdams) on Twitter
This story and its headline have been updated for clarity.
In CONTROL, Glenn Beck presents a passionate, fact-based case for guns that reveals why gun control isn’t really about controlling guns at all; it’s about controlling us. Find out more HERE.












































































































Comments (113)
DadRocked
Posted on November 19, 2012 at 3:51pmUnion Woosies! So the company unintentially called your hand and you folded.
The company had to make a very difficult decision to shut its doors.
Your, under 50% of the employee force, union members thought that the were playing hardball.
Oh no, now what do we do, no paychecks are flowing… I know let us reconsider our stance.
Woosies
charles116
Posted on November 19, 2012 at 4:01pmThis was all managements fault.
Hooking up with venture capitalists who milked the company just like the CEO and the executives.
But it’s the workers who get shafted
FOR ALL THE DEBT AND BAD DECISIONS
the higher ups made.
Report this comment
WarMunger_Al
Posted on November 19, 2012 at 4:06pmI just now lost all respect for Hostess. The should fire everyone and hire non-union. If they keeps these POS’s employed, I will boycott them forever. Give the jobs to people who wan’t the jobs, not the leeches that could careless if the company sinks.
Report this comment
Zipit
Posted on November 19, 2012 at 4:15pmCharles d-bag! Back up your statement! Let’s see some truth! Some sources!
Report this comment
wordsofwisdom
Posted on November 19, 2012 at 4:17pmDo the idiots in the union really think they can strangle a business and it won;t die? I think leaders like the union bosses are to closed minded to realize they are the problem not the solution. They are takers. They keep taking till the golden Goose is dry. Then they go looking for another business to take from till they run out of business’s to take from. Next they will try to take all the taxpayers money till it’s gone. Then we can all be poor together in a 3rd world type country. Boy I love unions, don’t you? “The End Times” http://www.reverbnation.com/play_now/song_10381143
Thanks to unions we are well down that road!
Report this comment
Keatonc333
Posted on November 19, 2012 at 4:32pmMan this was all management. these employees have taken pay cuts 2 years in a row, had their insurance cost raise and while all this was going on. the CEO and heads up tripled their paychecks.. its sick and greedy! who wouldn’t strike? looks like a Union win to me! and zipit.. here are my sources
http://ontd-political.livejournal.com/10220469.html
http://whatreallyhappened.com/content/hostess-twinkies-ceo-tripled-salary-25m-while-preparing-file-bankruptcy
Report this comment
Eastinfection
Posted on November 19, 2012 at 5:11pmThat’s awfully presumptuous and partisan of you KEATON…
I’m going to assume labor and management are both going to do what’s necessary to survive if possible…
I think…. management is vulture- capitalist oriented AND the labor faction bid itself out of service…
perhaps a compromise can be made that reflects the realistic value of the commodity and it’s servants?…
There is no value incurred in striking by any labor force unless their labor is in demand elsewhere….
I’m anti- Crony-Capitalism but reality needs a baseline… especially when it comes to servitude/ labor.
Report this comment
Cavallo
Posted on November 19, 2012 at 5:12pmIf it was just management then it’ll fold again anyway. Unions are a dying breed outside of the public sector because the government can’t go out of business and their customers are forced by gunpoint to buy the product. Not so with twinkies. No one holds a gun to my head to buy twinkies (yet). Still hoping they go out of business and the brand gets purchased by Bimbo. Someday I might be able to buy snack foods again and when I do I’d like them to be inexpensive.
Report this comment
Eastinfection
Posted on November 19, 2012 at 5:16pmPS: KEATON…
I am a home repair/ remodeling contractor. I have taken a “pay-cut” for 4yrs in a row. I have let go of 11 employees. I no longer have health insurance for myself…..
Cry me a river for the “Baker’s Union”
Report this comment
shy
Posted on November 19, 2012 at 5:18pmI agree with WarMunger_Al. if Hostess hirers back these union workers then let them go Bankrupt. I belive it’s time to boycott unions, before they destroy America.
Report this comment
charles116
Posted on November 19, 2012 at 5:36pmThe info I post is all on the net.
It’s called GOOGLE.
Report this comment
Eastinfection
Posted on November 19, 2012 at 6:17pmCHARLES… that’s lame. Though i am often sympathetic to your perspective, i can’t support you here.
The burden of proof is on the poster. If you want to be credible… you have to back it up….
Nobody who disagrees with you is going to do research to validate your baloney.. If you found the facts to make the assertion, cut-paste it onto a “post-it” and then repeat onto the “Speak your mind” part.
you will be treated like a spam-coward unless you do.
Report this comment
Rx2
Posted on November 19, 2012 at 7:07pmThe problem with this issue is there are many things to blame. It is not just the unions, but the economy, increasing healthcare cost, and to many government regulations. Many of these things could be easily tackled if not for the divisive times we live in.
By the way Keatonc333 your sources are not credible being blogs and Leftest web sites.
The county is going down in flames and we need to be honest if things are to get better.
Report this comment
SolitudeBliss
Posted on November 19, 2012 at 7:31pm@Keaton and Charles If you knew anything about Business you would know what cost of goods is. In any manufacturing one has to figure in the costs of raw materials, building and utilities and all associated costs (this includes labor which includes taxes, healthcare, etc) prior to pricing a product. Every business owner (large and small business) will tell you that all costs have skyrocketed the last few years. Not only have raw materials gone through the roof but shipping costs because of fuel has also skyrocketed. Taxes have gone up, insurances have gone up, building costs, utilities, etc. all have gone up. Especially for a business such as Hostess and specifically Twinkies, there is only a small profit margin for that market (One can only price Twinkies up so much) so Hostess has to count on volume of sales of Twinkies for profitability. Well, in tough economic times and with people becoming more selective in their food choices, the volume of sales needed to make a profit disappears. It’s simple numbers people. And that’s business.
Report this comment
valeriemb63
Posted on November 19, 2012 at 7:41pmWhy all the WHINING from the workers…if you don’t like the company QUIT..LEAVE GO SOME WHERE ELSE… So sick of whining complaining unions who DO NOTHING BUT TAKE TAKE TAKE. You do a job you get paid you go home…you didn’t build the company, it wasn’t your concept, you just drive a truck or bake a product which is a recipe that belongs to someone ELSE…and you are hired to do that job. So if you don’t like the pay QUIT.
Report this comment
charles116
Posted on November 19, 2012 at 8:36pmManagement got the company 800 million dollars in Vulture Capital debt.
Report this comment
SCREW-WINDOWS
Posted on November 19, 2012 at 8:58pmCharles
The $20.00 union made twinkie will have no market except pot heads.
Report this comment
tootsie roll
Posted on November 19, 2012 at 9:33pmThats right it is always GOOD TO LOSE 18,000 JOBS
UNIONS SUCK AND ARE SUCKING THE BLOOD OUT OF THIS COUNTRY.
Report this comment
athynz
Posted on November 19, 2012 at 10:10pmRight, right “woosies”… “woosies” who are justifiably pissed off that the same executives that have requested for a second time that the rank and file workers give up pay and benefits, the same executives that have run the company into the ground have also taken 80-300% pay raises and asked for 1.75 million to be paid into executive bonuses while going through the process to file for bankruptcy. Right. Tell me how is it that these people who have made the decisions they have are not penalized when it all blows up in their faces but are instead rewarded? When was piss-poor management rewarded?
Report this comment
hotmonkeylovejunkie
Posted on November 20, 2012 at 12:41ami was shocked and stunned by the Hostess decision. of course growing up as a kid i enjoyed their products in abundant glory, and no i’m not a chunker: ) but their decision is noble and an exclamation mark on what socialist ideals will bring to this country.
i believe unions served a purpose at one time in the growth of our country, but same is the course of the fed gov’t, unions are over-stepping their grounds. they make twice as much as anyone else would in their position were it not labeled a union position, not to mention benefits and pensions and whatever else perks with such a labeled position receives( i really wouldn’t know because i’ve never been unionized).
i would hate to see Hostess go out of business. but by doing so i think would send a strong message across the country, or so i would hope it to be a strong message. i’m not sure how many other company’s would have the courage to tell the unions they can have their 100% paycut. or that they will not agree to obamacare because it does not conform to their company beliefs or ideals.
the moron in the white house was spewing his garbage how the majority of the country made it clear that they wanted more of what he is doing and likes his direction. Hostess could pave a sweet path back to American prosperity if others would follow suit.
Report this comment
Havok
Posted on November 20, 2012 at 11:47amIts WUSSY’S.
because “its part wimp and part *****”
Report this comment
LouieKelcher74
Posted on November 19, 2012 at 3:50pmAdd your comments
Report this comment
HKS
Posted on November 19, 2012 at 3:44pmBimbo will end up with the whole enchilada. Their business model is far superior and Hostess is old school with a fatal amount of union and pension problems.
Report this comment
FredomLovingJ
Posted on November 19, 2012 at 3:54pmYou”re right Bimbo will end up with everything because that’s generally what happens in situations like this. By the way, they did not “agree” the judge ORDERED mediation for one more day. No big deal. Actually the company has more bargaining power now than it had three days ago. Frankly, the company should sell to Bimbo and wash their hands of it. Bimbo has already established operations in Mexico. Mexico could definitely use the export – and the American work force needs to wake up and realize that unions are killing the manufacturing in this country. Because of THEIR greed, companies are forced to move on to the overseas market in order to just compete today. I don’t feel bad for the union workers. The only bad thing Hostess did was allowing their workers to unionize in the first place. Unions have been antiquated sources of corruption and unneeded since the Department of Labor was formed. They are only mucking up the relationship between employer/employees and thus, causing people lose their jobs. Wake up, America. Unions are not productive!
Report this comment
HKS
Posted on November 19, 2012 at 4:17pmIt would appear to me that Americans have a fatal flaw, most of them think their doing someone a favor by working for them. They think someone owes them something, like Romney had it wrong, it’s not 47%, it’s well over 50%. Minorities are now what one could call the “good workers”.
Report this comment
valeriemb63
Posted on November 19, 2012 at 7:43pmAmen hks….
Report this comment
mindcrime
Posted on November 19, 2012 at 3:43pmTime for Hostess to put the boot on the Union bosses throats.
Report this comment
psadie
Posted on November 19, 2012 at 4:07pmI agree.
Report this comment
Keatonc333
Posted on November 19, 2012 at 4:32pmhow? they already tried.. and failed
Report this comment
booger71
Posted on November 19, 2012 at 5:41pmHow have they failed Keaton. The judge only gave them to Weds.
Report this comment
copatriots
Posted on November 19, 2012 at 3:41pmInteresting game of poker they are playing.
Report this comment
bobdog19006
Posted on November 20, 2012 at 10:57amOh, toss in another quart of oil there, Elly May. I’m sure she’s got another fifty miles in her.
Report this comment
The-Monk
Posted on November 19, 2012 at 3:40pm“My baloney has a first name, it’s…” oh wait, that won’t work for this company. LOL
Report this comment
hauschild
Posted on November 19, 2012 at 3:40pmLazy bastards would probably rather receive 2 years unemployment, and then hope the Marxists adds another few years onto it (which supposedly has been introduced), and then ultimately lifetime.
Losers.
Report this comment
athynz
Posted on November 20, 2012 at 10:08amThe sheer ignorance here is appalling. Really, you people are bent out of shape because workers refused to take more pay cuts so the executives could get 80-300% raises? So corporate greed and horrible mismanagement played NO part at all in the Hostess issues – it’a ALL the union’s fault? Really? And a union made product and a company that employs union labor will never make it? Oh? Let’s look at Ford – the ONLY company of the big 3 that did not take bailout money and uses union labor. Sure, right unions are killing America – it’s not corporate greed at all. Right. Then there’s this oh so intelligent post:
“Lazy bastards would probably rather receive 2 years unemployment, and then hope the Marxists adds another few years onto it (which supposedly has been introduced), and then ultimately lifetime.
Losers.”
Dude, the government has limited unemployment to 6 months – even with an extension it is only a year at most… If you are going to put people on blast at least get your “facts” right.As for lazy bastards – what kind of lazy bastard would take money from the pay of his rank and file workers to give him and his execs bonuses and raises while his company is gong down the tubes? Wait… that would NEVER happen…
Report this comment
BlackCrow
Posted on November 19, 2012 at 3:39pmHaven’t eaten them in years so the only loss to me are the 18,500 people who are looking for work, the new jobs south of the boarder and all the new traffic on I35 with all those trucks importing HoHos
Report this comment
taxpro4u03
Posted on November 19, 2012 at 10:01pmYup! I-35 corridor runs to the Int’l Bridge at Laredo, TX & slides all the way up thru Minneapolis (crossing into Canada up yonder) — I-40 runs from Barstow east to Wilmington (those containers with chinese logos on ‘em)
Report this comment
TelepromoterNChief
Posted on November 19, 2012 at 3:34pmThis news pleases Moochelle.
She figured her secret stash under her bed would be it until she persuaded B.O. to bail out Hostess or she’d release his college records.
Report this comment
rsvrdg3179
Posted on November 19, 2012 at 3:31pmOf course you all know that the lame stream media will spin this as a win for the union.
Report this comment
freedoc
Posted on November 19, 2012 at 3:31pmAnd so, it begins…again. The proletariat crushing the bourgousie.
But, who will win?
Neither.
Unions will continue to destroy this country.
If you want a job, then go find one paying more.
Start your own company.
Oh, thats right. You can’t. You won’t. You don’t know how.
Atlas Shrugged….~la.
Report this comment
TelepromoterNChief
Posted on November 19, 2012 at 3:31pmI will admit buying into the hype.
I bought a few boxes.
I figured I could use them in defense of my home in case Chris Christie came at me for making all those fat jokes about him.
Oh tub of Judas Christie comes running at me, I will throw Twinkies at him to slow him down until his heart gives out. That is a good thrity foot lead right there.
Report this comment
The Jewish Avenger
Posted on November 19, 2012 at 3:39pmThat or Sally Strutters could lead the Chinese… good idea…
Confuse the frontline.
LOL
Report this comment
term limits for congress
Posted on November 19, 2012 at 3:29pmWanna bet that Twinkies are now government-subsidized? Who will be the Twinkie Czar???
Report this comment
TelepromoterNChief
Posted on November 19, 2012 at 3:35pmTofu will be the new “cream filling” for Twinkie.
Report this comment
booger71
Posted on November 19, 2012 at 5:42pmOne of the guys Barry met at the Chicago bath scene.
Report this comment
LogicRules
Posted on November 19, 2012 at 3:26pmI wouldn’t buy a Twinkie now if my life depended on it.
Report this comment
mdlwoods
Posted on November 19, 2012 at 3:43pmWhy would you not buy Twinkies? You should be very proud of Hostess for standing up to the idiotic demands of the unions who are destroying this country! Hostess was more willing to shut down than to give into outrageous demands by the union! I highly respect Hostess for taking this stand!!! I has caused the Union to come back and say, now, wait a minute, maybe we can make a deal that is at least ok for both sides and our people won’t lose 18000 jobs!!! If more companies did this, the Unions would begin to lose their hold on this Country!
Report this comment
HKS
Posted on November 19, 2012 at 3:55pmUnions can’t compete with anyone anywhere anymore with the addition of the government bricks on business, unless of course it’s a government or a monopoly. For that reason this business will have to be moved to Mexico to survive, simple as that. Ironically, you might say the government is the kiss of death for unions.
Report this comment
Cavallo
Posted on November 19, 2012 at 4:51pmMDLWoods, I try to avoid the Union Label at all costs. Now knowing that Hostess is mostly a Union Label I refuse to do business with them. Their product doesn’t fit with my new health kick either, so that will help both my wallet and waistline.. as well as moral sensibilities. Another company I try to avoid doing business with is UPS, because they are Union.
Report this comment
charles116
Posted on November 19, 2012 at 5:36pmStop. You’re upsetting your dentist.
Report this comment
InfiniteSolutions
Posted on November 19, 2012 at 3:26pmI got mine on sale, 2 boxes for 5 dollars. What a bunch of hordes and dummies. Are people really getting that narrow minded. Common sense is no longer common anymore, this is for sure!
Report this comment
Mil Mom
Posted on November 19, 2012 at 5:55pm@InfiniteSolutions
Posted on November 19, 2012 at 3:26pm
I got mine on sale, 2 boxes for 5 dollars. What a bunch of hordes and dummies. Are people really getting that narrow minded. Common sense is no longer common anymore, this is for sure!
****
Common sense? Bought on sale at 2 boxes for 5 dollars??? I quit buying Hostss snacks when they went to $1.99 because they didn’t fit my budget. Most supermarkets have in store bakeries cheaper than that.
Report this comment
lylejk
Posted on November 19, 2012 at 3:24pmI say good news. Don’t want my Twinkies to be made in Mexico. :)
Report this comment
Cavallo
Posted on November 19, 2012 at 3:31pmI would rather my food made by Mexicans than Unions. I would rather my junk food be made by Iranians than Unions. I would rather my junk food be made by incarcerated pedophile defrocked clergymen or disgraced molesting football coaches, than Unions. Unions and Union members are one of the lowest forms of life on earth.
Report this comment
SocialistSlayer
Posted on November 19, 2012 at 3:34pmI’d rather have them made in Mexico than by Communist Unions!
Report this comment
athynz
Posted on November 19, 2012 at 10:16pm“CAVALLO
Posted on November 19, 2012 at 3:31pm
I would rather my food made by Mexicans than Unions. I would rather my junk food be made by Iranians than Unions. I would rather my junk food be made by incarcerated pedophile defrocked clergymen or disgraced molesting football coaches, than Unions. Unions and Union members are one of the lowest forms of life on earth.”
Imagine that – you’d rather outsource yet another company costing thousands of Americans their jobs. Way to go pal. I would much rather see people like you deported to Mexico to work at those factories. Unions have their issues but someone who would rather see jobs outsourced and take work from their own countrymen is a lower form of life than a traitor. I would rank you several steps lower than you would rank a union worker.
Report this comment
subsailor
Posted on November 19, 2012 at 3:22pmTwinkie sales skyrocket! Company turns a profit! Decides to stay in business, and layoff all employees every 6 months! Seriously though, I think the union members had had enough and demanded that the union cut a deal. a pay cut is preferable to no job at all. If they had any sense at all the employees would vote the union out! The leadership is only out for themselves and the hell with the employees. They bitch about the salaries the CEO makes, and don’t say a word about there high pay and sweet benefits package.
Report this comment
starman70
Posted on November 19, 2012 at 3:32pmI was saying the exact same thing. The stupidity of the unions is incredible. Wonder Bread and Hostess cakes including Twinkies CAN NOT be delivered to a store on the same truck. They must use 2 different trucks. THIS IS ASSENINE!! Goofy, stupid and inane rules like this is what’s killing American jobs.
It is far better to bring home a paycheck, even if it is a slightly reduced amount than to depend on Obozo to supply 2 years of unemployment from a broke country and then have no real prospect of re-employment because the company you worked for no longer exists.
Report this comment
Anonymous T. Irrelevant
Posted on November 19, 2012 at 3:19pmYou would think unions would learn by now that extorting money from an employer is a bad idea, as you could lose your job, especially in an econObamany.
Report this comment
Rothbardian_in_the_Cleve
Posted on November 19, 2012 at 3:44pmOR…maybe the POTUS step in and gives you 60% of the company and end-arounds the courts so those owning the debt get hosed. Not that this hasn’t happened before…purely hypothetical.
Report this comment
Anonymous T. Irrelevant
Posted on November 19, 2012 at 3:58pmI DID hear a radio station jokingly say to petition the government to nationalize them.
Report this comment
pap pap
Posted on November 19, 2012 at 3:17pmWhether the strike was avoided or not you had to be crazy to pay extra for the Twinkies because they will be picked up shortly after the bancruptcy is dealt with and they might even be better without the help of unions.
Report this comment
flatbroke
Posted on November 19, 2012 at 3:17pmFruit pieeeeeee anyone!
Report this comment
Shasta
Posted on November 19, 2012 at 3:16pmwhich is why the unions didn’t negotiate in the first place. they never believed it would happen
Report this comment
Rothbardian_in_the_Cleve
Posted on November 19, 2012 at 3:42pmWould Obama really let 18K union workers go out? Besides, both sides of the negotiation are “his guys”. Tim Collins and Ripplewood are big Obaman/DNC folks. The unions obviously are. So, Owebama buys them a beer and each divides their take and the union tell the rank and file that “this is a good deal”, the sheep vote and the machine carries on.
I will not be buying hostess stuff any longer though.
Report this comment
Anonymous T. Irrelevant
Posted on November 19, 2012 at 3:56pmI used to like the vanilla Zingers, but, now, every time I buy a box of them, they are stale and the frosting on top is hard. No more.
Report this comment
Depressed_American
Posted on November 19, 2012 at 3:13pmI bet those IDIOTS on E-Bay who paid $100.00 for a box are feeling pretty stupid about now……
Report this comment
Snowleopard {gallery of cat folks}
Posted on November 19, 2012 at 3:17pmOne of the wonders of a free market system. I just wonder what the deal involves?
Report this comment
starman70
Posted on November 19, 2012 at 3:25pmMy son just told me he saw a bid for $400. DUHHHHHH?
Report this comment
skimmer57
Posted on November 19, 2012 at 3:12pmThe happiest man in America is Chris Christie!
Report this comment
TelepromoterNChief
Posted on November 19, 2012 at 3:29pmChristie was never worried.
Ol’ fatty has an underground warehouse stocked full of them. It is enough to last him a week. Two, if he cuts back, but only if he is serious about it.
Report this comment
Tractorboy
Posted on November 19, 2012 at 3:36pmHey Bill Kistol is right the rich can pay a little more….Loosen the noose a bit.
Report this comment
RJJinGadsden
Posted on November 19, 2012 at 3:12pmDang, all of those buy ups of the ‘collector’ items were screwed by yet another union move.
http://www.youtube.com/watch?v=r_-rIyHwS8s
Report this comment
The-Monk
Posted on November 19, 2012 at 3:36pmHi RJJ,
Listen to the word “protein” at 0:50. LOL
Report this comment
RJJinGadsden
Posted on November 19, 2012 at 3:58pmHi MONK, LOL, yeah I caught that.
Report this comment
ResistSocialism
Posted on November 19, 2012 at 3:11pmc) don’t care, not a hostess fan. lol
Report this comment
DadRocked
Posted on November 19, 2012 at 3:53pmMatters not if you’re a fan of their product.
Another 18,500 people would be out of work.
Your company, very likely, could be next.
Report this comment
ResistSocialism
Posted on November 19, 2012 at 3:59pmGood I have no sympathy for them let them eat Twinkies.
Report this comment