November 17, 2012

Hostess update

The Bakery, Confectionery, Tobacco Workers and Grain Miller says the company has ceased making contractually obligated payments to the Hostess workers' pensions since July 2011 and has pocketed approximately $160 million in money earned by and owed to its dedicated workforce.

"Hostess Brands is in bankruptcy for the second time in eight years. Since the first bankruptcy in 2004, BCTGM members across the country have taken dramatic wage and benefit concessions and watched as 21 Hostess plants were shut down and thousands of jobs were lost. At the time of the first bankruptcy, Hostess workers were assured by management that money saved via concessions and plant closings would help make the company stronger, more vibrant and more competitive.

Instead, the money has gone towards executive bonuses and payments to the hedge fund that owns Hostess brands. 

Some curious characters involved

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