1:47AM EST November 16. 2012 - INDIANAPOLIS
-- Striking Hostess Brands workers remained on the picket lines across
the country Thursday night, refusing a company ultimatum to return to
work or face the liquidation of the national baker.
The maker of
Twinkies, Ding Dongs and Wonder Bread warned it would file a motion in
U.S. Bankruptcy Court to shutter operations if enough workers didn't end
their weeklong strike by 5 p.m. ET Thursday.
The company is
expected announce Friday whether it will follow through on that
strategy. A shutdown would result in the loss of about 18,000 jobs.
Hostess,
based in Irving, Texas, already has reached a contract agreement while
in bankruptcy with its largest union, the International Brotherhood of
Teamsters. But thousands of members in its second biggest union went on
strike late last week after rejecting a contract offer that cut wages
and benefits.
The Bakery, Confectionery, Tobacco Workers and Grain
Millers International Union said the company stopped contributing to
workers' pensions last year, and the union wants pension benefits
restored.
Production at about a dozen of the company's 33 plants
has been seriously affected by the strike, said Lance Ignon, a Hostess
spokesman.
He said a decision on liquidating the company may not
come until Friday morning after it's had a chance to assess plant
operations late Thursday.
"Do it, shut it down," a woman yelled at 5 p.m. Thursday from the picket line formed at the company's Indianapolis plant.
As
many as 45 people in the picket line chanted, "No pension, no deal," as
they walked a tight circle in the growing cold and gathering darkness.
Their picketing drew frequent supportive honks from passing drivers.
Wedrick
Hollingsworth, business agent for Local 372-B of the bakers union, said
union members took wage and benefit concessions four years ago and are
unwilling to accept further wage cuts and reductions in health and
pension benefits sought by the company. "It's just too much for these
employees to accept. We gave concessions four years ago."
John
Smith, a wrapper operator at the plant who has worked for Hostess for 22
years, said he's at peace with his decision to join the strikers. "You
have to take a stand for what you believe in. They gave us a
take-it-or-leave-it deal. We can't take the financial abuse."
Hollingsworth,
warmly dressed in coveralls and a hooded sweatshirt, said union members
would man the picket line outside the plant round-the-clock. Workers
erected a tent and were burning wood fires in two grills to help stay
warm.
Several private security officers watched the strikers from
the gate of the plant, which normally runs its ovens 24 hours a day
turning out bread, buns, mini-doughnuts and muffins.
The union business agent said he'd prefer to see Hostess sold.
"It's
definitely got to be better than what this company's trying to
implement. There are other bakeries out there looking to purchase some
of these locations. These employees have the opportunity to go back in
(under a new owner)."
Privately held Hostess filed for Chapter 11
protection in January, its second trip through bankruptcy court in less
than a decade. The company cited increasing pension and medical costs
for employees as one of the drivers behind its latest filing. Hostess
contends workers must make concessions for it to exit bankruptcy and
improve its financial position.
The company, founded in 1930, is
fighting battles beyond labor costs, however. Competition is increasing
in the snack market, while Americans are increasingly conscious about
healthful eating. Hostess also makes Dolly Madison, Drake's and Nature's
Pride snacks.
The Teamsters union is urging the bakers union to
hold a secret ballot on whether to continue striking. Citing its
financial experts who had access to the company's books, the Teamsters
say that Hostess' warning of liquidation is "not an empty threat or a
negotiating tactic" but a certain outcome if workers keep striking.
Hostess warned it would begin closing operations as early as Tuesday.
source :
usatoday