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article imageTwinkies company facing major labour strife

By Owen Weldon     Nov 15, 2012 in Business
Hostess Brands Inc. is warning employees who are striking that if plant operations do not return back to normal levels by Thursday evening, the next move will be to liquidate the company.
According to Star Tribune, Hostess Brands Inc., the maker of Twinkies, Wonder Bread and Ding Dongs, said that they will file a motion in U.S. Bankruptcy Court if enough workers did not return by 5 p.m. on Thursday. If the company goes through with the motion, then about 18,000 jobs will be loss.
Hostess has already reached a contract agreement with their largest union, which is the International Brotherhood of Teamsters, but thousands of members of their second biggest union went on strike last week. Members of the union rejected a contract offer that cut benefits and wages in September.
According to Reuters, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union's members make up about one-third of Hostess' employees.
The president of the Union, Frank Hurt, said that the crisis is a result of financial and operational mismanagement that has been going on for nearly a decade. Hurt also said that management was trying to make union workers the scapegoats for a plan by investors on Wall Street to sell Hostess.
According to Houston Chronicle, Lance Ignon, a spokesman for Hostess, said that the company will probably make an announcement on Friday, after they have the chance to assess plant operations on Thursday evening.
The CEO of Hostess, Gregory Rayburn, said that a lot of workers have already made the decision to go back to work this week, despite being warned by union leadership that they would face a fine.
Rayburn said that the main problem is that the company does not have enough workers to maintain normal production.
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