Have We Heard This Before?

 

 

 

 

  ” Hostess Brands Inc., maker of Twinkies and Wonderbread, said today it would shut down three of its factories, firing 627 workers, as a wave of strikes hit its plants across the country.

About two-thirds of its plants are being picketed by almost 6,000 union workers upset at a new contract; Hostess CEO Gregory Rayburn says worse it to come if the strike doesn’t end. From the WSJ’s Rachael Feintzeig:

Mr. Rayburn said Monday afternoon that Hostess is permanently shutting down plants in Seattle, St. Louis and Cincinnati as a result of the work stoppage, and 627 jobs will be lost. “We don’t have the manpower to maintain them during the strike,” he said.

He also said that the company didn’t have much more wiggle room in terms of shutting down additional plants and that the next step would probably be a complete shutdown.

That sounds pretty serious — except we’ve heard something similar before. Here’s Mr Rayburn back in late September, setting the scene for votes by the company’s two biggest unions on new labor deals:

The chief executive of Hostess Brands Inc. said the troubled maker of Twinkies and Wonder Bread will immediately liquidate if union members don’t sign on to the final labor deal it has offered them.”

 

 

 

Update : Hostess Sets Deadline To Strikers: Thursday, 5 p.m, Or It’s Over

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