Forum Post: What really happened at Hostess.
Posted 11 years ago on Nov. 22, 2012, 6:48 p.m. EST by DebtNEUTRALITYpetition
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I think this Wall Street Journal article explains the exact cause as to why the company is being disbanded.
http://online.wsj.com/article/SB10001424127887324352004578130912150512612.html
It's a short but effective read and will probably explain the issue in a way you have not heard yet.
Guess the bakers were averaging $16 an hour and the teamsters about $20. The bakers must have been closer to $20 a few years ago because there was a paycut.
http://dealbook.nytimes.com/2012/11/19/hostess-and-bakers-union-agree-to-mediation/
Complicated situation no doubt. Still hard to find accurate info on how much different workers were making per hour.
What I thought was important from the article was the distribution issue that apparently required two different teamsters in two different vehicles to visit each store, one for storing the product and the other for moving it.
I don't know if that applied to all situations but it seems to have caused an additional increase in distributions costs.
Hostess was another victim of the union