The 
Strike
Note: Below are stories compiled by
the KVOE News Department since Bakers and Confectioners Union employees went on
strike Nov. 9.
WEDNESDAY, Nov. 21: LIQUIDATION CAN COMMENCE FOR HOSTESS
By
Chuck Samples/KVOE News
Posted Nov. 21, 2012
Hostess Brands has the official go-ahead to
begin liquidating all its assets.
Bankruptcy Judge Robert Drain gave his
approval during a hearing Wednesday, letting Hostess move forward with plans to
sell all its assets, including the rights to over 30 brands.
Plans locally are still developing for
meetings and a job-and-resource fair to help employees and their families adjust.
Emporia Rep. Don Hill says the state is
looking to help short-term with the Rapid Response meetings. It's also looking
ahead to lay the groundwork for other businesses to consider
As those plans develop, United Way Director
Jami Reever says demand is already increasing for help with rent, utilities and
food.
Judge Drain's decision follows an
unsuccessful attempt at mediation between the company and the Bakers and
Confectioners Union, which went on strike against the company earlier this
month to protest the company's decision not to pay into a pension plan and an
eight-percent wage cut.
The move eliminates around 18,000 jobs
across the company, including over 500 in
As Hostess prepares to sell off its assets,
interest has increased in some or all of the brands under the Hostess umbrella.
Two private equity firms have expressed interest in all the 30-some brands,
while other entities have expressed more limited interest in brands like
Twinkies.
TUESDAY, Nov. 20: MEDIATION TALKS FAIL
Boxes of Twinkies were popular items at
By
Posted
The future of Hostess Brands is back in
bankruptcy court.
Mediation talks between Hostess and the
Bakers and Confectioners Union broke down late Tuesday, sending the case back
to Bankruptcy Judge Robert Drain to resume a liquidation hearing originally set
for Monday but was delayed so both sides could meet.
Neither side is commenting.
While discussions continue in bankruptcy
court, talk has revved up locally about ways to help soften the blow for
employees. A meeting Tuesday involved local civic and government leaders along
with state lawmakers, representatives from Congressional offices, nonprofit
agencies, health and education.
Rapid Response meetings are pending, and a
job and resource fair for the general public had already been set for Dec. 12.
Immediate needs like food, rent and utility
assistance have already developed. United Way Director Jami Reever says Hostess
employees can call
A liquidation hearing will now take place at
It's unclear if Judge Drain will have a
decision Wednesday or whether he will push that to an "omnibus"
hearing Nov. 29 that has already been scheduled for weeks.
TUESDAY, Nov. 20: MEDIATION MEETINGS AWAIT
RESOLUTION
By Chuck Samples/KVOE News
Posted Nov. 20, 2012
At least one more mediation meeting is
scheduled Tuesday in a last-ditch effort to keep Hostess Brands in business.
Both Hostess and the Bakers and
Confectioners Union agreed to mediation upon U.S. Bankruptcy Judge Robert Drain's urging Monday. The two sides have been meeting all
day, and Judge Drain has ordered one more mediation session before the day
ends.
Hostess had shut down all operations Friday
after the bakers union went on strike Nov. 9, and the company had indicated it
wanted to liquidate all assets. Judge Drain is waiting to see how the mediation
efforts go Tuesday before re-starting a liquidation hearing, which is currently
set for Wednesday.
Production will remain on hold until the company
situation is resolved.
Local and state leaders are meeting at
MONDAY, Nov. 19: INSTEAD OF LIQUIDATION, MEDIATION
Both
sides in Hostess conflict agree to Tuesday meetings upon judge’s request
Mediation
hearings have been scheduled Tuesday between Hostess Brands and the Bakers and
Confectioners
By
Chuck Samples/KVOE News
Posted Nov. 19, 2012
U.S. Bankruptcy Judge Robert Drain has put a
temporary halt on Hostess Brands' effort to liquidate all its assets.
Judge Robert Drain urged the company to go
into mediation with the Bakers and Confectioners Union, which went on strike
Nov. 9 before the company announced its plans to shut down and liquidate
Friday. Drain says the two sides have not gone through mediation yet.
Mediation has been set for Tuesday, and
production will remain shut down during the process. Plants nationwide have
been shut down since Nov. 9, when bakers union
employees went on strike.
Here locally,
KansasWorks is also getting ready for Rapid Response meetings
and a possible job fair for the over 500 employees locally who lost their jobs.
A planning meeting has been set up for 2 p.m. Tuesday at
Employees and town leaders are among
the groups hoping an outside buyer purchases Hostess and also keeps the
MONDAY, Nov. 19: KANSASWORKS OFFICE ‘SWAMPED’ WITH INFORMATION
REQUESTS
By
Chuck Samples/KVOE News
Posted
While Hostess Brands and its nearly 19,000
employees wait to see whether the company can indeed start the liquidation
process, efforts continue locally to help the over 500 employees now out of a
job after Hostess announced its plans to shut down late last week.
The KansasWorks
office at Flinthills Mall has been
"swamped" Monday with requests for various
information provided by the state agency. A planning meeting has been
set up for
Bankruptcy Judge Robert Drain has agreed to
hear the Hostess liquidation motion which, according to numerous news outlets,
includes a request to pay up to $1.75 million in bonuses to senior company
managers.
Employees and town leaders are among
the groups hoping an outside buyer purchases Hostess and also keeps the
MONDAY, Nov. 19: BANKRUPTCY JUDGE TO HEAR HOSTESS LIQUIDATION
REQUEST
Hostess
announced its liquidation plans early Friday, but a sign requesting job
applications remains in front of the Emporia plant – and, in this case, in
front of a handful of Bakers and Confectioners Union picketers Saturday
morning. Photo by Chuck Samples/KVOE News.
By
Chuck Samples/KVOE News
Posted
Updated
Hostess Brands will have its liquidation
request heard Monday afternoon by U.S. Bankruptcy Judge Robert Drain.
Hostess announced its plans to shut down the
company Friday in hopes of starting the liquidation process as soon as Tuesday,
although
Now that Hostess Brands has announced its plans
to get court permission to shut down the entire company, word has surfaced
about potential buyers. C. Dean Metropolous and Co.,
a private equity firm from
Should Metropolous
purchase Hostess, this would continue the firm's interest in buying struggling
brands. Metropolous has had success in turning around
Chef Boyardee and Bumble Bee Tuna, according to Bloomberg.
Another potential buyer already has a
presence in the baking field. Flowers, Inc., may make a bid to expand its
geographic footprint for products like Tastykake and
Nature's Own bread.
Local union employees still on the
When Hostess filed for bankruptcy in
January, it cited the need to redo relationships with its unions and concerns
about its pension plan as reasons for the move -- the second time in eight
years Hostess had taken that step. The company ultimately won a wage and
benefit realignment from the Teamsters which included an eight-percent wage cut
the first year, restoration of half that amount over the following two years of
a five-year contract and a "temporary" stoppage of pension payments
until 2015. Hostess then won the right to impose a similar deal on the bakers
union when it rejected the package overwhelmingly.
FRIDAY, Nov. 16: HOSTESS REQUESTS AUTHORITY TO LIQUIDATE
Bakers and Confectioners Union Local 218 employees remain on
the picket line on
By
Chuck Samples/KVOE News
Posted
The news was expected, but it was still
painful for many in the
Early Friday, Hostess Brands announced it
wants to liquidate all its operations. It has filed a motion in U.S. Bankruptcy
Court requesting permission to "wind down" the company and sell all
assets. Hostess wants the motion heard Monday so it can begin the process as
soon as Tuesday.
During KVOE’s 6:35
a.m. headlines segment Friday, Local 218 member Tim Mercer said the union has
wanted to preserve its pension. It also said the union was flexible with some
of its demands, including the willingness to accept a wage freeze, but it still
wanted restoration of the prior pension agreement.
Mercer also said having no job was better
than working for Hostess under the current situation. That was not a sentiment
shared by several other employees locally, including non-union driver Tim
Buchanan. He had started six months ago. Now he's not sure what he will do. He
says his family “will have no Christmas” because of the union action.
City working to minimize long-term
impact
By
Chuck Samples/KVOE News
Posted
City Manager Matt Zimmerman says this will
certainly hurt, but local civic leaders are working hard to minimize any
long-term negative effects for residents. During KVOE’s
7:05 a.m. newscast Friday, he also said the city had a delicate balance to
tread as the Hostess situation moved along: preparing for all possible options
without giving Hostess the feeling the city was prepared for life without the
company.
KansasWorks is finalizing a meeting schedule for job fairs and
retraining sessions as we speak.
Company: Need to rework union
relationships, pensions a longstanding concern
By
Chuck Samples/KVOE News
Posted
When Hostess filed for bankruptcy, it cited
the need to redo relationships with its unions and concerns about its pension
plan as reasons for the move -- the second time in eight years Hostess had
taken that step. The company ultimately won a wage and benefit realignment from
the Teamsters which included an eight-percent wage cut the first year,
restoration of half that amount over the following two years of a five-year
contract and a "temporary" stoppage of pension payments until 2015.
Hostess then won the right to impose a similar deal on the bakers union when it
rejected the package overwhelmingly.
Teamsters agree with Hostess on
liquidation option, lack of ‘white knight’
By
Chuck Samples/KVOE News
Posted
As the conflict continues between Hostess
and the bakers union, tensions are now evident between the bakers union and the
Teamsters -- who now are recommending bakers union employees
hold a secret vote to determine whether they want to keep striking.
A news release on the Teamsters' website
agrees with Hostess in saying the continued strike would result in
"certain" liquidation. The Teamsters are accusing bakers union
leadership of "not substantively" looking for a solution and telling
union workers there were better offers than what Hostess disclosed when
Bankruptcy Judge Robert Drain said no such offers existed.
If Hostess liquidates, over 500 employees in
WEDNESDAY, Nov. 14: HOSTESS PLANS TO REQUEST AUTHORITY TO LIQUIDATE
IF STRIKE DOESN’T END THURSDAY
Employees express hope
about
Bakers
and Confectioners Union employees have said they plan to stay on the Industrial
Road picket line even though Hostess has now said it wants to request liquidation
if they and other striking union employees nationwide don’t return to work by
late Thursday afternoon. Photo by Ryan Schmidt/KVOE News.
By
Chuck Samples and Ryan Schmidt/KVOE News
Posted
Updated
Hostess Brands hasn't said how many Bakers
and Confectioners Union workers have to return to work, but the company says it
will try to liquidate if enough don't return to their jobs by 4 p.m. Central
time Thursday.
The company plans to file a motion in U.S.
Bankruptcy Court on Friday requesting to "wind down" the company and
sell all assets. It has also requested a hearing Monday on the matter, and if
the motion is granted Hostess will begin closing operations as soon as Tuesday.
Even with the company saying there is no
"white knight" company anywhere in sight, Local 218 member Tim Mercer
still believes Hostess is wrong. Mercer isn't sure there is a buyer
for the entire company, but he thinks there may be one for the
Other workers on the picket line are also
optimistic -- but also exasperated by the developments since the strike began
Saturday. Machine operator Ruben Hernandez says the company's decision to
liquidate is the latest example of Hostess' inability to tell its employees the
truth. Hernandez says the company has told employees they plan to hire
permanent workers only to follow that statement by saying it can’t sustain that
approach.
Emporia City Manager Matt Zimmerman says
this is an economic issue between company and union and has nothing to do with
production quality. He says it is far too early to discuss the potential
economic impact on
Hostess filed for Chapter 11 bankruptcy in
January, citing the need to redo relationships with its unions and concerns
about its pension plan as reasons for the move -- the second time in eight
years Hostess had taken that step. The company ultimately won a wage and
benefit realignment from the Teamsters which included an eight-percent wage cut
the first year, restoration of half that amount over the following two years of
a five-year contract and a "temporary" stoppage of pension payments
until 2015. Hostess then won the right to impose a similar deal on the bakers
union when it rejected the package overwhelmingly.
The liquidation plan was the last in a busy
day of developments concerning the company. Less than an hour before that
announcement, members of the Bakers and Confectioners Union Local 218 from the
Mercer says the area union employees on the
picket line are eligible for unemployment and many have started looking for
work, either in town or elsewhere.
TUESDAY, Nov. 13: UNION EMPLOYEES
Hostess
workers from the
By
Ryan Schmidt/KVOE News
Posted
On Monday, some local Hostess Brands
strikers expressed their disappointment after they learned some of the
co-workers had crossed the picket line and returned to work. Others declined
comment, saying they refused to judge their cohorts for that decision.
On Tuesday, the bakers union workers on the
Mark Friesen has worked as an icing operator
at Hostess for 18 years. Friesen says the workers are coming from Arnold Group
to fill their positions. He says management can bring in the temporary
workers, but the supervisors won't be able to teach them well enough to do the
work he or any of the workers have done for the company over the years.
Friesen says he received a notice from
Hostess about an eight percent reduction to his paycheck. Other workers
told me they make $16.31 an hour, so that eight percent pay cut would drop them
to $15 an hour. That translates into a $104 cut from each paycheck.
Hostess has not taken action, or commented
on the immediate situation after closing three plants yesterday.
Protestors want to reiterate that they are
not striking because of the eight percent pay cut. They say they are
striking to save their pension, which they say turned into huge executive
bonuses shortly before Hostess declared Chapter 11 bankruptcy in January.
MONDAY, Nov. 12: HOSTESS BEGINS SHUTTING DOWN PLANTS
IN MAJOR CITIES; EMPORIA PLANT CURRENTLY OFF CLOSURE LIST
Bakers and Confectioners Union employees from the
By Chuck Samples/KVOE News
Posted
The response was not immediate, but it was
swift.
Hostess on Monday announced it was
shuttering facilities in
On KVOE’s airwaves
Friday, Hostess
The closures will mean Hostess loses over
620 jobs from those three cities.
Rayburn also reiterated there was no
"white knight" company coming in to buy Hostess as union employees
have suggested.
Union officials have not returned phone
calls or social media requests for comment.
Union workers went on strike early Saturday,
protesting an eight-percent wage cut that went into effect earlier this month
and what they say was the misappropriation of their pension funds to executive
bonuses shortly before Hostess declared Chapter 11 bankruptcy in January. The
company has maintained the need to redo its relationships with its unions to be
competitive. Hostess is imposing a similar wage and benefits package agreed to
by the Teamsters but rejected by the bakers union. Rayburn says the package now
resembles those available to non-union employees and company executives.
Local union employees unhappy with closures
By Ryan Schmidt/KVOE News
Posted
Most Hostess workers who walked off the job
early Saturday are still striking across from the plant on
There is currently no word on how many union
employees locally have broken ranks. They face fines of $140 a day for crossing
the picket lines.
Some workers picketing along
Francesca Zuniga is also a production worker
at the plant. She says workers on the
inside have sent them pictures of understaffed production lines and other
violations.
Some workers say they are upset some of
their co-workers have gone back to work.
But others declined comment, saying those choosing to go back to work
have their own reasons, and they did not want to speak ill of them.
Other workers claimed family insurance
premiums will increase to $117 per week. One worker also said that the
latest concessions proposed by Hostess would set the union back 40 years.
SUNDAY, Nov. 11: COMPANY STARTS TO GAUGE
By
Chuck Samples/KVOE News
Posted
Now that a strike by the Bakers and
Confectioners Union is entering its second day, Hostess Brands has not
commented on whether the company has made any adjustments to get its product
out to customers or whether a liquidation is imminent as Hostess
Meanwhile, union workers from the Emporia
area and Lenexa keep picketing across from the Hostess facility on Industrial
Road.
Rayburn said company leaders are gauging how
widespread the strike is before taking action, but he said job losses, plant
closings and a company shutdown are still options. Workers on the Emporia
picket line declined to be named, but they claimed the company stole their
pension money and turned it into executive bonuses shortly before Hostess
claimed Chapter 11 bankruptcy in January. They also questioned whether a
"wind-down" of the company was as immediate as Rayburn has said.
Since the bankruptcy filing, Hostess and its
unions -- namely the bakers union and the Teamsters -- have been negotiating a
new wage and benefits package. Hostess eventually won concessions from the
Teamsters but not the bakers union. The Teamsters narrowly agreed to a package
including an immediate eight-percent wage cut, restoration of half that amount
over the following two years and what the company called a temporary stoppage
of payments into the union's pension plan. The bakers union said that would
amount to a 27-percent cut in overall compensation and rejected the deal
soundly, but Hostess gained approval from a federal bankruptcy judge to impose
the package on the bakers union.
Wage cuts began this month, according to a
company spokesman.
SATURDAY, Nov. 10: STRIKE BEGINS
By
Chuck Samples/KVOE News
Posted
The leader of the Bakers and Confectioners
Union says a strike against Hostess Brands is "an inspiring display of
courage and conviction."
Hostess
There is one thing both sides can agree on,
and that's the fact a strike is now underway in Emporia. Union employees from
the Emporia area and Lenexa went on strike shortly after 1 a.m., and several
hundred workers lined Industrial Road across the street from the Hostess plant
early Saturday.
KVOE News has been advised union workers are
not allowed to talk with media until certain news releases are posted on social
media and on the union's website. However,
Hostess
Emporia workers are "honoring" the
Lenexa strike, meaning the Lenexa workers are free to strike at other plants
because the bankruptcy court ruled that way, rules set out by the National
Labor Relations Act or because Hostess has made its final offer. In turn,
Emporia workers are honoring the strike picket lines throughout the process.
Hostess filed for Chapter 11 bankruptcy in
January, citing the need to redo its relationships with its unions as a way to
return to profitability. Union workers immediately expressed concerns about the
potential effects on their salaries and pension plans, especially after
executives noted large salary increases just before the bankruptcy
announcement.
Hostess eventually won concessions from the
Teamsters but not the bakers union. The Teamsters agreed to a package including
an immediate eight-percent wage cut, restoral of
half that amount over the following two years and what the company called a
temporary stoppage of payments into the union's pension plan. The bakers union
said that would amount to a 27-percent cut in overall compensation and rejected
the deal soundly, but Hostess gained approval from a federal bankruptcy judge
to impose the package on the bakers union. Wage cuts began this month,
according to a company spokesman.
Emporia City Manager Matt
Zimmerman says it's too early to say what the economic impact of a strike
may be. Zimmerman says the city's first concerns are both for the company's
well-being and also that of its workers.