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November 20, 2012

Hostess to Enter Talks with Union After Strike Blamed for Company’s Demise 
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The U.S. food giant Hostess and its second largest union have agreed to
enter mediation talks after the company blamed a workers' strike when it
moved to liquidate its assets and cease operations last week. The
Hostess bakers’ union went on strike after rejecting a contract that
slashed pensions, wages and health benefits. While the company blamed
the union for its planned closure, critics say Hostess tripled its
CEO’s pay and increased executive compensation by as much as 80
percent while it filed for bankruptcy for the second time earlier this
year. The mediation was agreed to after a bankruptcy judge overseeing
the case said the failure to undergo talks left "a huge question mark."
Hostess' products include the well-known snack cake, the Twinkie.

 

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