Goodbye To The Twinkie

As we continue to hear about how the economy is turning around, another American business icon is one the verge of going out of business. Hostess, the Texas-based baking giant, recently announced an aggressive plan to lay off most of it's 18,500-member workforce. The company's assets will then be auctioned off to the highest bidder. This decision comes after thousands of union members went on strike last week, drastically impeding business operations.

These lay-offs will, no doubt, have a huge economic impact. Directly impacted will be:

• 33 bakeries
• 565 distribution centers
• over 5000 delivery routes
• 570 bakery outlet stores

So, why did the workers decide to strike in the first place? Hostess, who has had it's share of  financial problems over recent years, filed for Chapter 11 protection back in January. The driving forces included increasing pensions and medical costs for employees. The company argued that concessions would have to be made by employees in order to sustain the business. So, Hostess presented a contract to the union that would essentially cut employee's wages and benefits. Although Hostess reached an agreement with their largest union (International Brotherhood of Teamsters), their second largest union (Bakery, Confectionery, Tobacco Workers & Grain Millers International) rejected the offer and a walkout ensued. Part of the contract would have cut salaries by 8% in the 5-year agreement. Salaries were then scheduled to increase by 3% in the next three years and 1% in the final year.

Even though Hostess warned that it didn't have the financial resources to weather an extended strike, workers failed to return to work by Thursday's deadline. And as a result, Hostess is now folding up.

I have heard all different types arguments regarding whether unions are good, bad or ugly. That's a discussion for another day. However, I have to wonder if the right decision was made in this case. Granted, no one wants to take a pay cut. But in today's economy, is it really wise to trade a company paycheck for a spot in the unemployment line? Hostess has been around since 1930, so I'm assuming that, at least some of the long-time employees were earning a decent wage. So, instead of taking a small pay cut, many of these now former employees will likely have to take jobs making considerably less than they were making at Hostess. Perhaps, a better option would have been to reluctantly agree to accept the terms of the contract. And then if you were that unhappy about it, you could find another company to work for. Because, let's face it, it's a hell of a lot less pressure to look for a job while you still have a job. Especially in today's economy.

With all of this being said, I do feel bad for Hostess employees. Because no matter what kind of bullshit the media tries to sell us about an "economic turn-around", times are tough. They're even tougher when you're unemployed....

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As a kid, I can remember walking down the snack aisle of the grocery store. I was always lured to the Hostess shelves for some reason. Being more a chocolate lover, I have to admit, I never really had a craving for the iconic Twinkie. Instead, I preferred the chocolate creme-filled cupcakes with the swirly white icing stripe on the top. I also ate my share of Ho-Ho's which were like a rolled up chocolate cupcake. The Ring Ding was a favorite childhood as well. And I can remember making lunch out of those Hostess sugary coated fruit pies on more than one occasion. Yeah, I know I'm not the poster boy for healthy eating, but those things were great! And I didn't even mention Wonder bread, another American classic!

The Twinkie is as American as apple pie. Well, maybe that's a bit of a stretch. But considering that Hostess has been cranking out 500 million Twinkies a year, somebody must like them. And, although I've never actually tried one, I hear that the deep-fried Twinkie is a big hit at festivals and state fairs around the country. 

Farewell to another piece of Americana.......

kw