Enough is enough, say bakery workers at Hostess Brands Inc.
After several years of costly concessions, the Bakery, Confectionery, Tobacco and Grain Millers Union (BCTGM) authorized a walk-out earlier this month after Hostess received bankruptcy court approval to implement a wage cut that was not included in its contract.
With operations stalled, the company that makes Twinkies and other famous U.S. brands said last week that liquidating its business was the best way to preserve its dwindling cash. It won court approval on Wednesday to start winding down in a process expected to claim 15,000 jobs immediately and over 3,000 more after about four months.
Interviews with more than a dozen workers showed there was little sign of regret from employees who voted for the strike.
They said they would rather lose their jobs than put up with lower wages and poorer benefits."They're just taking from us," said Kenneth Johnson, 46, of Missouri. He said he earned roughly $35,000 with overtime last year, down from about $45,000 five years ago."I really can't afford to not be working, but this is not worth it. I'd rather go work somewhere else or draw unemployment," said Johnson, a worker at Hostess for 23 years.
With 18,500 workers, Hostess has 12 different unions including the B CTGM, which has about 5,600 members on the bread and snack item production lines, and the International Brotherhood of Teamsters, which represents about 7,500 route sales representatives, drivers and other employees.
Unlike some non-unionized rivals, the maker of Wonder Bread and Drake's cakes had to navigate more than 300 labor c ontracts, with terms that often strained efficiency and competitiveness, Hostess officials have said. In some extreme cases, contract provisions required different products to be delivered on different trucks even when headed to the same place.
Aside from those so-called onerous labor contracts, Hostess has grappled for some time with rising ingredient costs and a growing health consciousness that has made its sugary cakes less popular. It filed for bankruptcy in January, only three years after emerging from a prior bankruptcy.Lance Ignon, speaking on behalf of Hostess, said the company recognized how difficult the