Just as the snack market is potentially on the verge of a massive, marijuana induced expansion, I hear a report of the death of a snack giant. Hostess is going down. And I ask myself, is it time to invest in Haldiram’s?
Hostess, based in Irving, Texas, said its stores will remain open for several days to sell remaining products. Operations at its 33 factories were suspended Friday. The privately held company filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade.
The move comes after thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week after rejecting a contract offer that slashed wages and benefits in September. The bakers union represents about 30 percent of the company’s workforce. – From NPR.com
Is there really anything to wonder-bread about? Do you see a few key words in this report? How about “based in Irving, Texas” or “Bakery, Confectionery, Tobacco Workers and Grain Millers International Union”. Tobacco Workers?
Come on now…is this a surprise that a company based in Texas, fighting a union based on the tobacco industry and the military-industrial complex, making a “food” product that burns hotter than melted plastic, that attempted to slash the wages and benefits of their workers but gave their CEO’s a 300% pay raise, is having issues?
Someone commented on NPR, “Where is Bain Captial when you need em?” It looks to me like they were running Hostess. Has anyone checked Mitt’s campaign bus for discarded Twinkie wrappers and a Hostess liquidation plan? He does kind of strikes me as a Ding-Dong. I can just imagine him addressing the stock holders about their worker’s compensation packages saying, “Let them eat cake!”
Here is the reason the Union workers decided to strike: BCTGM members voted to strike Hostess after the company imposed cuts that included ending payments to the employees’ pension plan while executives awarded themselves massive bonuses. Among the raises was a 300 percent raise (from approximately $750,000 to $2,550,000) for the then-CEO of Hostess. At least nine other top executives of the company also received massive pay raises, including one who received a pay increase from $500,000 to $900,000 and another received one that brought his salary from $375,000 to $656,256. – http://www.goiam.org/index.php/imail/latest/10787-hostess-ceo-falsely-blames-bakery-closures-on-strike
I am happy to see the fall of Hostess. I get that same “watching history unfold” feeling as I did when I sat in front of my TV as it spewed images of the fall of the Berlin Wall. As I read about it I am gleefully reminded of a 1980’s song – “the roof, the roof, the roof is on fire. We don’t need no water. Let the mother fucker burn.” I go to work with a little Mona Lisa smile on my face. I sit contently in my chair listening to all this analysis while I sipped my Spinach-Banana-Apple-Yogurt Smoothie.
Oh, yeah…. here is the recipe two handfuls of baby spinach, 1 apple, 1 bananas, 1 cup of yogurt, 5 strawberries, 1/2 orange.