Hostess says talks to stave off shutdown fail - New York News

Hostess says talks to stave off shutdown fail

Posted: Updated:

NEW YORK (AP) -- Hostess Brands Inc. lived to die another day.

The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with its second-biggest union. As a result, Hostess plans to continue with a hearing on Wednesday in which a bankruptcy court judge in White Plains, N.Y., will decide if the company can shutter its operations.

The renewed talks between Hostess and The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union came after the company declared last week that it would move to wind down its business and start selling off its assets in bankruptcy court. The company cited a crippling strike that was started on Nov. 9 by the union, which represents 30 percent of Hostess workers.

After making its case to liquidate on Monday, the bankruptcy court judge noted that the two sides hadn't yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences. Both sides agreed to hold mediation proceedings on Tuesday.

In a statement late Tuesday, Hostess said it would not comment on the breakdown in talks other than to say that mediation "was unsuccessful." There was no immediate comment from the bakers union.

Hostess shut down its three dozen plants late last week after it said the strike by the bakers union hurt its ability to maintain normal production. The union says the company's demise was the result of years of mismanagement, however, and that workers have already given steep concessions over the years.

Hostess, weighed down by management turmoil, rising labor costs and Americans' changing tastes, is making its second trip through Chapter 11 bankruptcy restructuring. The company, based in Irving, Texas, had brought on CEO Gregory Rayburn as a restructuring expert in part to renegotiate its contract with labor unions.

The company reached an agreement with its biggest union, the International Brotherhood of Teamsters, on a contract that dramatically reduced pension contributions, as well as slashing wages and health benefits. But the company said the bakers union stopped returning its calls about a month ago.

The Teamsters urged the smaller union to hold a secret ballot on whether members wanted to continue striking. Many workers in the bakers union decided to cross picket lines last week but Hostess said it wasn't enough to keep operations at normal levels.

Teamsters General Secretary Ken Hall said the failure of the mediation talks Tuesday and the likely shuttering of the company was a "tragic outcome" for Hostess workers.

Rayburn said that Hostess was already operating on razor thin margins and that the strike was the final blow. The bakers union meanwhile pointed to the steep raises executives were given last year as the company was spiraling down toward bankruptcy.

The company's announcement last week that it would move to liquidate prompted a rush on Hostess treats across the country, with many businesses selling out of Twinkies within hours.

Even if Hostess goes out of business, its popular brands will likely find a second life after being snapped up by buyers. The company says several potential buyers have expressed interest in the brands. Although Hostess' sales have been declining in recent years, the company still does about $2.5 billion in business each year. Twinkies alone brought in $68 million so far this year.

  • New York State NewsNew York State NewsMore>>

  • Fort Drum soldier fatally wounded in Afghanistan

    Fort Drum soldier fatally wounded in Afghanistan

    Thursday, April 17 2014 3:12 PM EDT2014-04-17 19:12:36 GMT
    U.S. Army photoU.S. Army photo
    A soldier from Fort Drum in northern New York has died from wounds suffered in combat in Afghanistan, the Department of Defense announced. Spc. Kerry M. G. Danyluk, 27, of Cuero, Texas, was wounded during a firefight with insurgents in Pul-e-Alam, Logar province on April 12, 2014, the Pentagon said. The military flew him to Landstuhl Regional Medical Center in Germany, where he died three days later.
    A soldier from Fort Drum in northern New York has died from wounds suffered in combat in Afghanistan, the Department of Defense announced. Spc. Kerry M. G. Danyluk, 27, of Cuero, Texas, was wounded during a firefight with insurgents in Pul-e-Alam, Logar province on April 12, 2014, the Pentagon said. The military flew him to Landstuhl Regional Medical Center in Germany, where he died three days later.
  • Harlem politician Basil Paterson dead

    Harlem politician Basil Paterson dead

    Thursday, April 17 2014 8:41 AM EDT2014-04-17 12:41:03 GMT
    Basil Paterson, the father of former New York Governor David Paterson, died Wednesday night at the age of 87. The trailblazing Democratic politician from Harlem served in the state Senate, as deputy mayor of New York City, as secretary of state of New York and was appointed by the New York Senate as a commissioner of the Port Authority of NY and NJ. In 1970, he ran for lieutenant governor, the second black nominee of a major party for statewide office in New York.
    Basil Paterson, the father of former New York Governor David Paterson, died Wednesday night at the age of 87. The trailblazing Democratic politician from Harlem served in the state Senate, as deputy mayor of New York City, as secretary of state of New York and was appointed by the New York Senate as a commissioner of the Port Authority of NY and NJ. In 1970, he ran for lieutenant governor, the second black nominee of a major party for statewide office in New York.
  • Pizza man attacked, shoots would-be robber

    Pizza man attacked, shoots would-be robber

    Wednesday, April 16 2014 4:34 PM EDT2014-04-16 20:34:37 GMT
    New York State NewsNew York State News
    This guy packs more than pepperoni. Police say a masked robber is in the hospital after a pizza delivery man shot at a gang of would-be thieves. Police tell local media outlets that the delivery man brought a pizza to a house around 10:30 p.m. Monday and was met in the front hallway by a man wearing a mask and hoodie.
    This guy packs more than pepperoni. Police say a masked robber is in the hospital after a pizza delivery man shot at a gang of would-be thieves. Police tell local media outlets that the delivery man brought a pizza to a house around 10:30 p.m. Monday and was met in the front hallway by a man wearing a mask and hoodie.
  • Your MoneyMore>>

  • Getting married? You may want your prenup to protect your 'digital privacy'

    Getting married? You may want your prenup to protect your 'digital privacy'

    Friday, April 18 2014 10:11 PM EDT2014-04-19 02:11:48 GMT
    Realty TV star Kim Kardashian probably wished she did have one before she walked down the aisle with Kris Humphries. We might never have known about Tiger Woods' cheating ways if he had one. And figure skater Johnny Weir is insisting on one as part of his post-nuptial agreement. What is it? A digital privacy clause. New York City divorce lawyer Bettina Hindin says once you push "send" someone can find it.
    Realty TV star Kim Kardashian probably wished she did have one before she walked down the aisle with Kris Humphries. We might never have known about Tiger Woods' cheating ways if he had one. And figure skater Johnny Weir is insisting on one as part of his post-nuptial agreement. What is it? A digital privacy clause. New York City divorce lawyer Bettina Hindin says once you push "send" someone can find it.
  • Grocery-store etiquette

    Grocery-store etiquette

    Friday, April 18 2014 7:24 PM EDT2014-04-18 23:24:07 GMT
    Whether barricading shopping aisles with abandoned carts, massaging every piece of fruit in the building, or blankly staring at a shelf of items so no one else can pick one, grocery store pests can turn a quick trip to restock your fridge into a nightmare.
    Whether barricading shopping aisles with abandoned carts, massaging every piece of fruit in the building, or blankly staring at a shelf of items so no one else can pick one, grocery store pests can turn a quick trip to restock your fridge into a nightmare. In the hope of gently educating those unclear on grocery-shopping etiquette, we asked you to help us put together a list of what not to do.
  • Expert: credit cards are not fully secure

    Expert: credit cards are not fully secure

    Friday, April 18 2014 6:49 PM EDT2014-04-18 22:49:51 GMT
    Another week and another credit card hacking at a major retailer. This time it was Michael's craft store. Consumers are uneasy because current credit card technology is antiquated. "The fact is you cannot protect your credit cards, you can't every time you give it out it is vulnerable to fraud," says Robert Siciliano, McAfee identity theft expert.
    Another week and another credit card hacking at a major retailer. This time it was Michael's craft store. Consumers are uneasy because current credit card technology is antiquated. "The fact is you cannot protect your credit cards, you can't every time you give it out it is vulnerable to fraud," says Robert Siciliano, McAfee identity theft expert.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices