Twinkies, Ding Dongs Maker Hostess Liquidates Following Failure To Resolve Labor Union Animosity
source: http://www.zerohedge.com/news/2012-11-16/twinkies-ding-dongs-maker-hostess-liquidates-follow...
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- Dagum
- added this
http://www.zerohedge.com/news/2012-11-16/twinkies-ding-dongs-maker-ho...
Hostess Brands, the company better known as the maker of Butternut, Ding Dongs, Dolly Madison, Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride, and of course Wonder Bread and Twinkies, and which previously survived one multi-year Chapter 11 bankruptcy process, when it operated as Interstate Bakeries, has just made a splash at the NY Southern Bankruptcy court, for the last time, with a liquidation filing. The reason: insurmountable (and unfundable) difference in the firm's collective bargaining agreements and pension obligations, which resulted in a crippling strike that basically shut down the company.In other words, Twinkies may well survive the nuclear apocalypse, but there was one weakest link: the company making them, was unable to survive empowered labor unions who thought they had all the negotiating leverage... until they led their bankrupt employer right off liquidation cliff. Will attention now turn to that another broke government entity, the Pension Benefit Guarantee Corp (PBGC), which will have to step in to resuscitate some 18,000 pension plans which suddenly vaporized after labor unions took their "negotiating" freedom a step too far. Finally, those 18,500 new initial jobless claims next week? Sandy's fault....
Continued at:
http://www.zerohedge.com/news/2012-11-16/twinkies-ding-dongs-maker-hostess-liqui...
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- Community, Community Spotlight
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- Wind down
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freecrack
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if only weed was legalized sooner, and completely hostess would be rolling in that munchie money.but oh well, puritanical values for the sake of them are just more important than logic or reason
- 6 months ago
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freecrack
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OlBlue
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So will these strange products go extinct? Will a breeding program be established to save the species?
We may have to take our grand children to a museum to see the doomed snacks. What will I say when they ask about them? I could tell them about the time their grandma let me smear HoHo's all over her.............no that won't work. I'm not sure how to explain them since, from the name Hostess, to the phallic Twinkies, the breast-shaped SnoBalls, and who-knows-what-the-heck is going on with HoHo's......, it's all sex.
Oh well, it was fun while it lasted.
As Tom Robbins observed, they are one of the few species who travel in pairs and mate for life. - 6 months ago
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OlBlue
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BrushwithDeathToothpaste
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Good. Wonder Bread and Twinkies are shit. Break them up and give smaller manufacturers a chance to fill the void.
- 6 months ago
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BrushwithDeathToothpaste
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Paratus
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Now THAT'S how to watch out for the jobs of your union members. I hope the rank and file are happy about the representation they have paid for with the union.
- 6 months ago
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Paratus
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Joeydee44
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Paratus:
Put THAT in your Ding Dong and eat it!
- 6 months ago
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Joeydee44
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Paratus
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Joeydee44:
I don't eat Ding Dongs so eat it yourself. Oh, the print is too small on your photo to read. Face it Mr. Ho-Ho, the unions killed the company. Now there are 18k laid off and guess what, the unions did it. NICE job.
- 6 months ago
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Paratus
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HarukoHaruhara
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Real quote from an AP story:
“How do these just disappear from your life? That’s just not right, man. I’m loyal. I love these things, and I’m diabetic.”
- 6 months ago
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HarukoHaruhara
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BrushwithDeathToothpaste
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HarukoHaruhara:
Despite my dislike for these products, I feel for your loss haruko.
- 6 months ago
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BrushwithDeathToothpaste
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HarukoHaruhara
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BrushwithDeathToothpaste:
No, not me, that's an AP quote.
I haven't eaten a Twinkie in at least 15 years.
- 6 months ago
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HarukoHaruhara
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BrushwithDeathToothpaste
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bailey78:
Wait until they connect the rockets raining into Israel are made by labor unions.
- 6 months ago
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BrushwithDeathToothpaste
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bailey78
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BrushwithDeathToothpaste:
Hey no rocket like a union made rocket.
- 6 months ago
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bailey78
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Paratus
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BrushwithDeathToothpaste:
Wow, jet assist Twinkie. New concept. Saves chewing time.
- 6 months ago
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Paratus
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TheForeteller
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Let the culling begin.****LOL
- 6 months ago
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TheForeteller
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notonmywatch59
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Now, Occupy Wall Street Rolling Jubilee should come-in buy up this company and give it back to the employees!!
- 6 months ago
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notonmywatch59
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corndog67
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notonmywatch59:
Except that Occupy Whatever, is a bunch of broke ass fucks that don't have jobs, and nobody will give them credit.
What a joke.
- 6 months ago
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corndog67
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bailey78
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notonmywatch59:
...and change the products to something that's not killing us.
- 6 months ago
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bailey78
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Joeydee44
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C'mon, stop blaming labor for the company's mismanagement.
- 6 months ago
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Joeydee44
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WisconsinNorm
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Joeydee44:
Then labor should purchase the company and run it properly.
- 6 months ago
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WisconsinNorm
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Paratus
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WisconsinNorm:
"Then labor should purchase the company and run it properly."
I LOVE it. Wish I had thought of it. Yeah, that will work.
- 6 months ago
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Paratus
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WisconsinNorm
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Paratus:
Therein lies the problem. It will always be the problem. Labor wants too much for too little responsibility. They can never run what they want to run into the ground. Very sad reality.
- 6 months ago
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WisconsinNorm
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Hardytoo
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Heard on the news here that another company will likely buy the rights - worth zillions for the rights to the Twinkie name - the right to make and sell Twinkies. Fear not, poison-junk-eaters. Your Twinkies and Ding-Dongs are safe. They Shall Rise Again.
- 6 months ago
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Hardytoo
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gypsygirl1965
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although this seemingly not so innocent junk or comfort food will be missed and I feel really bad about those losing their jobs around the holidays....so can someone explain to me how the economy is doing better??? 18,000 more families going to depend on gooberment ...sad...really
- 6 months ago
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gypsygirl1965
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Jakaro
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That sh*t is all poison anyway. The market is getting increasingly health councious.
I just put a box of twinkles on eBay for 2 grand, I hope that's ok. - 6 months ago
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Jakaro
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FreeSpiritMuse
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Mmmm, Tasty Chemicals - A new book 'deconstructs' a Twinkie and analyzes all 39 ingredients. Industrial-strength junk food, anyone?
At the heart of the book is the fundamental question: why is it you can bake a cake at home with as few as six ingredients, but Twinkies require 39? And why do many of them seem to bear so little resemblance to actual food? The answer: To stay fresh on a grocery-store shelf, Twinkies can't contain anything that might spoil, like milk, cream or butter. Once you remove such real ingredients, something has to take their place—and cellulose gum, lecithin and sodium stearoyl lactylate are a good start. Add the fact that industrial quantities of batter have to pump easily through automated tubes into cake molds, and you begin to get the idea.
Even so, it can be unsettling to learn just how closely the basic ingredients in processed foods resemble industrial materials. Corn dextrin, a common thickener, is also the glue on postage stamps and envelopes. Ferrous sulfate, the iron supplement in enriched flour and vitamin pills, is used as a disinfectant and weedkiller. Is this cause for concern? Ettlinger says no, though you wouldn't want a diet that consists solely of Twinkies. Ultimately, all food, natural and otherwise, is composed of chemical compounds—and normal ingredients like salt have industrial applications, too. Still, it gives you pause when he describes calcium sulfate, a dough conditioner, as "food-grade plaster of Paris."
In the end, you may learn more than you really wanted to about the Twinkie-Industrial Complex, as Ettlinger calls it. But you will never read a label the same way again.
http://www.thedailybeast.com/newsweek/2007/03/04/mmmm-tasty-chemicals.html
- 6 months ago
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FreeSpiritMuse
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gypsygirl1965
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FreeSpiritMuse:
hey free where can I find that book....
- 6 months ago
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gypsygirl1965
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AJILIVIZION
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http://www.dailykos.com/story/2012/11/16/1162355/--Hostess-Brands-is-a-microcosm...
'Hostess Brands is a microcosm of what’s wrong with America'
As Hostess Brands announces its liquidation, the company's management is blaming a strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers union—those damn workers wouldn't accept having their pay and pensions cut and their health care contributions increased just a few years after they made similar concessions in Hostess' previous, mishandled bankruptcy. "The forces most responsible" for the liquidation, CNBC's John Carney writes, "were two hedge funds that control hundreds of millions of Hostess debt and which have finally decided they won't squeeze any more filling into the Twinkie."
Only Silver Point and Monarch could have kept Hostess out of liquidation and kept the Twinkie bakery ovens firing. But they were, ultimately, unable to reach a deal with the unions that represents the workers who make and deliver products like Twinkies, Wonderbread and Ding Dongs. Without large union concessions—what some would say, total union capitulation—the hedge funds decided Hostess would have to die.
Hostess has clearly been mismanaged in recent years after having grown through the previous decades in ways that make its structure, including its labor force, especially complicated. But the end game is that private equity firms came in to do what they do: squeeze profits for their own multimillionaire investors at whatever cost to workers and to the company itself. Who cares if tens of thousands of workers are left unemployed and without the means to retire? Not Silver Point or Monarch, as long as they get their money. Who cares if Hostess exists tomorrow? Not Silver Point or Monarch, as long as they get their money.These union members had faced a slow bleed for years. The only question for them was whether to accept an accelerated bleed and hope it would stop in a few years—but hope that in the knowledge that that was not a priority or even necessarily a desirable outcome to Hostess' private equity owners—or to fight for what they earned. We're hearing, and can expect to keep hearing, a lot about how it's so unreasonable of union members to expect to get the pay and benefits they negotiated and worked for, the pensions they've planned their retirements around. Because this is coming after a generation-long war on pensions and unions and middle-class wages. As AFL-CIO President Richard Trumka said in a statement, "What’s happening with Hostess Brands is a microcosm of what’s wrong with America, as Bain-style Wall Street vultures make themselves rich by making America poor."
It boils down to this: You don't get to complain about income inequality and the obscene wealth of the top 1 percent and say that it's unreasonable for industrial bakers and truck drivers to send their kids to college and retire before their bodies are completely broken. When we complain about income inequality, we have to understand both sides, that the chipping away at the compensation and value accorded jobs that were middle-class jobs not too long ago is, by design, the flip side of the 400 households with a combined $1.7 trillion. It's not for sport that we think the top 1 percent shouldn't hold nearly 35 percent of the wealth; we have a problem with that because of the poverty and struggle such concentration of wealth creates down the line, where 50 percent of people hold just 1.1 percent of the wealth, where people from the 50th percentile to the 90th have less than 25 percent of the wealth, leaving nearly 75 percent in the hands of the top 10 percent.
Hostess workers are real people, fighting for what they've earned and facing personal economic disaster. But, as Trumka said, this struggle is also part of exactly the broad economic forces Occupy fought and Mitt Romney represented. This is growing economic inequality in action, and standing for these workers' pensions—even if you don't have one yourself—is fighting an economy of hedge funds and for the top one percent.
- 6 months ago
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AJILIVIZION
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cmc101
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Hostess, a privately held company, filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing. Hostess has argued that workers must make concessions for it to exit bankruptcy and improve its financial position.
The company, founded in 1930, is fighting battles beyond labor costs, however. Competition is increasing in the snack space and Americans are increasingly conscious about healthy eating. Hostess also makes Dolly Madison, Drake's and Nature's Pride snacks.
Hostess said it would file the motion to liquidate Friday if needed, with a hearing scheduled for Monday. If the motion is granted, Hostess would begin closing operations as early as Tuesday.
Hostess, which is privately owned by two hedge funds, has struggled in recent years with two bankruptcy filings. The company said it "has done everything in its power to pursue a reorganization of its business as a going concern, including spending the better part of 18 months negotiating with its key constituents to obtain a consensual agreement."
- 6 months ago
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cmc101
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Leen61
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"Bye to Twinkies and Workers Rights? Hostess Blames Striking Workers As it Liquidates, Romney-Style"
http://www.alternet.org/bye-twinkies-and-workers-rights-hostess-blames-striking-...
- 6 months ago
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Leen61
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trut
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So Hostess took the money that was supposed to go to pensions and stole it. Now they claim all the money is gone and so someone else should have to pay the pensions.
Romney wasn't involved in this deal was he? - 6 months ago
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trut
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Paratus
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trut:
Wasn't it something like 18,000 jobs gone in the stroke of a pen. I doubt that Romney was as good as the unions at eliminating jobs.
- 6 months ago
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Paratus
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bailey78
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Just that much less crap to poison the body with.
- 6 months ago
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bailey78
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crabbyoldguy
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bailey78:
But danged Bailey, there could be a disruption in the distribution of someone's poison of choice, makes me twitchy just thinking about that ....
:)
- 6 months ago
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crabbyoldguy
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crabbyoldguy
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So if the product lines will be bought and manufactured by another company/companies is there a possibility that workers in other unionized shops will be making the Twinkies, and thusly benefiting thru anothers loss and could that have been the unions plan all along ?
I do love a conspiracy.
- 6 months ago
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crabbyoldguy
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Dagum
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crabbyoldguy:
I guess if another unionized company buys up the pieces of Hostess.
Someone will buy up the pieces of Hostess for pennies on the dollar and Twinkies will probably stay on the market, but they'll probably end up being manufactured in China or some other place abroad where labor is cheap.
- 6 months ago
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Dagum
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Incredulous
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Dagum:
and we'll have to send back large shipments of them on a regular basis because they contain lead.
- 6 months ago
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Incredulous
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cmc101
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Incredulous:
na.
it is antifreeze - 6 months ago
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cmc101
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letsliveinpeace
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Thanks for posting.
- 6 months ago
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letsliveinpeace
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HarukoHaruhara
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Ugh ... Twinkies...
- 6 months ago
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HarukoHaruhara
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ThoughtNu
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HarukoHaruhara:
I never touched 'em, but they were omnipresent throughout my lifetime and saved me more than once in a marshmallow battle ;-)
- 6 months ago
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ThoughtNu
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Incredulous
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OMG....a world without Twinkies, Ding-Dongs and Wonder Bread....what's next, no McDonalds?
- 6 months ago
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Incredulous
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crabbyoldguy
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Incredulous:
Full circle, yes ?
- 6 months ago
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crabbyoldguy
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Incredulous
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crabbyoldguy:
lol....I have a hard time grieving over the loss of things like twinkies, ding-dongs, wonder bread, pappa johns pizza, dennys greasy garbage and applebees microwaveable mush.....almost feels as if the food world is cleansing itself....but yeah, back to the green pepper hamburgers.
- 6 months ago
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Incredulous
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bailey78
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Incredulous:
No McDonalds?? If only we were that lucky.
- 6 months ago
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bailey78
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cmc101
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bailey78:
they change their C.E.O.this week
- 6 months ago
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cmc101
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gypsygirl1965
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bailey78:
I second that..
- 6 months ago
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gypsygirl1965
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crabbyoldguy
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Petition wants Obama to save Twinkies
' "We the undersigned, hereby request Barack Obama to immediately Nationalize the Twinkie industry and prevent our nation from losing her sweet creamy center," a petition on the White House "We the People" website requests.
'
https://petitions.whitehouse.gov/petition/nationalize-twinkie-industry/cJz0ngJR - 6 months ago
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crabbyoldguy
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dugdog47
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crabbyoldguy:
These petitions are getting out of hand. I propose a petition to end frivolous petitions. Will you sign?
- 6 months ago
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dugdog47
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crabbyoldguy
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dugdog47:
Ya these things is kinda silly, just a tool to make folks think that someone really cares for their input...
- 6 months ago
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crabbyoldguy
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cmc101
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dugdog47:
i DID
- 6 months ago
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cmc101
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crabbyoldguy
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Hostess should have pushed for a twinkie tax to offset the disparity...Maybe they could have reached out to Kraft and incorporated an Oreo/Twinkie tax.
man..... I'm being a bad crabbyoldguy today.
- 6 months ago
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crabbyoldguy
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VFORVENDETTA
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So Dagum, are you saying with this thread that you are anti-union?
- 6 months ago
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VFORVENDETTA
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Dagum
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VFORVENDETTA:
No, I am not anti-union. I believe in the freedom of association. I believe in the freedom of contract and negotiation. I believe everyone should have the right to pool together when bargaining for employment to increase their negotiating power.
That said, it's a horrible idea to strike when your employer is in the middle of a chapter 11 bankruptcy. Under a Chapter 11 bankruptcy if a company can't meet the reorganization plan and pay the creditors on time, they automatically go into liquidation, which is what happened here.
Tactically, it was a horrible move to strike in the middle of a bankruptcy, which led to horrible results and I am wondering who advised them to take this course of action?
- 6 months ago
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Dagum
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SIBob
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Dagum:
Maybe the management ran the company into the ground rather than have to negotiate any more union contracts, (while making it look like the union's fault), only to "regroup" in other (more "friendly" to business), states, or countries. This is nothing new. And, by all accounts, they are milking all of the pro-corporate publicity they can get.
- 6 months ago
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SIBob
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MSII
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SIBob:
Sounds like a corporate-FASCIST plan alright! I think you nailed it!
- 6 months ago
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MSII
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tverdell
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Dagum:
Yeah, and they hurt the non-union people too.
- 6 months ago
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tverdell
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tverdell
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VFORVENDETTA:
The teamsters did not support this strike either.
According to Hostess, they still made deliveries. - 6 months ago
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tverdell
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cmc101
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Dagum:
Tactically, the company had an advantage thru the courts to stop the union benefits
- 6 months ago
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cmc101
