ATLAS SHRUGS: Hostess Shutters Operations; Closes Denver Plant

The Hostess company today announced that it would stop operations – meaning it will close plants, lay off its 18,500 employees, and sell off its brand.  Among the plants it plans to close is one in Adams County, which could close as early as Tuesday, according to an article in the Fort Collins Coloradoan.

The company cited a recent strike as the reason it would have to cease operations.  Thousands of union members went on strike last week after rejecting in September a contract offer that cut wages and benefits. While Hostess agreed upon a contract with the International Brotherhood of Teamsters, the Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union was still in negotiations with Hostess.

The CEO of Hostess, Gregory Rayburn, told ABC News:

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike.  Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

The company had asked that striking employees return to work last night, but, apparently, not enough returned to enable the company to return to production. This is just another example of how union bosses with fat paychecks don’t represent the interests of their members.  We’d bet the reduced wages for employees that the unions haggled over now look appealing compared to no wages the employees face.

 
© 2011-2013 Colorado Peak Politics