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Talks Between Hostess and Union Fail, Layoffs Moving Ahead

Company's Wayne bakery will be shut down and sold. More than 300 workers will lose their jobs.

 

A last-minute attempt to save the jobs of more than 18,000 Hostess employees, including more than 300 in Wayne, was held Tuesday following a mediation session with the 82-year-old company and a workers union.

CNN reported Tuesday that the last-ditch mediation session between Hostess and the Bakery, Confectionary, Tobacco, and Grain Millers Union to resolve a labor dispute “was unsuccessful.”

The sides met following a request from the U.S. Bankruptcy Court. The session interrupted the company’s hearing in court until 11 a.m. on Wednesday, the company announced on its website. The company had requested permission to liquidate its assets and holdings.

Production remains shut down at Hostess’ 33 bakeries. The 320 workers at the Wayne bakery will be out of a job effective July 3 and the facility will be sold.

Hostess will also sell its popular brands, including Drakes and Dolly Madison, which make iconic cake products such as Twinkies and Ding Dongs, to help pay creditors.

The company filed for Chapter 11 Bankruptcy protection in May.

— Have a question or news tip? Contact editor Daniel Hubbard at Daniel.Hubbard@patch.com or find us on Facebook and Twitter. For news straight to your inbox, sign up for our daily newsletter.

Robert E November 24, 2012 at 12:38 AM
While they were cutting the bakers pay by 8% and benefits by 32% the CEO gave himself a 300% raise. During the second bankrupty nine Hostess executives increased their pay by 60% to over 100%. Wonder why this wasn't reported to the press. They also stopped paying into the employee's pension plan to which they already owed $160,000,000. And you wonder why the employee's are fed up. This is Corporate greed at its best.

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