UPDATE: Hostess threatens liquidation

7:17 PM, Nov 15, 2012   |    comments
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SACRAMENTO, CA - If striking workers at Hostess plants across the country don't return to work by 2 p.m. Thursday, the company will start the liquidation process first thing Friday in bankruptcy court, say officials.

That means roughly 18,500 Hostess workers across the country could very soon be out of a job, including 300 at the Sacramento plant off Arden Way.

When the 2 p.m. deadline came and went, picketers continued their march in front of the Sacramento facility.

Strikes are happening at 24 of Hostess' 33 plants in the United States.  The employees are not happy with a new labor contract that calls for cuts to health care benefits and an eight-percent salary cut across the board.

Workers at the Sacramento facility say they're not on strike, but are just supporting their fellow bakers union members who are holding down the picket lines in other cities.

Hostess has already made moves to close plants in St. Louis, Cincinnati, and Seattle in response to the strike, and already 627 workers at those plants are out of a job.

The layoffs happened quickly, unlike the situation at the Campbell's soup plant in south Sacramento where many workers are still on the job through July.

The president of the bakers union says the workers are not willing to take the large wage and benefit cuts on top of concessions they already made in 2004, "just so that wall street vulture capitalists in control of the company can walk away with millions of dollars."

Some analysts say the long-time products like Twinkies, Ding Dongs, and Wonderbread could disappear due to the situation, but others believe Hostess' trademark treats will live on after getting scooped up at auction and attached to products from other companies.


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