Hostess is going out of business, but Twinkies will live forever.

[JaneyVee]

Union president Frank Hurt:

The crisis facing Hostess Brands is the result of nearly a decade of financial and operational mismanagement that resulted in two bankruptcies, mountains of debt, declining sales and lost market share. The Wall Street investors who took over the company after the last bankruptcy attempted to resolve the mess by attacking the company’s most valuable asset – its workers.

They sought to force the workers, who had already taken significant wage and benefit cuts, to absorb even greater cuts including the loss of their pension contributions. I have said consistently throughout this process that the BCTGM is a highly democratic organization and that our Hostess members themselves would determine their future. By an overwhelming majority, 92 percent, these workers rejected the company’s outrageous proposal, fully aware of the potential consequences.

For the workers, those potential consequences are dire. As noted above, over 18,000 people are expected to lose their jobs as a result of Hostess shutting its doors. Once the brands and assets are sold, some other manufacturer will start cranking out “Twinkies” and “Wonder Bread.” The only thing that will have changed is that the people making them will be making less money and undoubtedly have worse benefits.

The rest: http://grist.org/news/hostess-is-going-out-of-business-but-twinkies-will-live-forever/
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This is exactly what the GOP & Wall St. eventually wants, to crush wages so low Americans will be fighting with each other for low paying jobs while the CEO gets a 300% raise & the corporations workers low wages are subsidized by the taxpayer in form of food-stamps & welfare, leading to higher profit margins. Privatize the profits, socialize the losses. If you can't innovate your way into higher profits, crush the workers.

[thelordofhell]

1. And the upper management did this right before the bankruptcy so they could get paid

Salary Increases at Hostess

Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000
Gary Wandschneider, EVP, $500,000 to $900,000
John Stewart, EVP, $400,000 to $700,000
David Loeser, EVP, $375,000 to $656,256
Kent Magill, EVP, $375,000 to $656,256
Richard Seban, EVP, $375,000 to $656,256
John Akeson, SVP, $300,000 to $480,000
Steven Birgfeld, SVP, $240,000 to $360,000
Martha Ross, SVP, $240,000 to $360,000
Rob Kissick, SVP, $182,000 to $273,008

This is a move that is done "in cases of liquidity" to compensate upper management............The investors bled this profitable company dry and now want to eat the bones. They will dump the pensions on the taxpayer by pleading poverty..........Bain capitalism at it's worst

[deacon2]

2. In our colons...