In response to Metropoulos & Co. CEO C. Dean Metropoulos' statement to The Wall Street Journal that the company will not hire union workers when reopening four former Hostess Brands bakeries, BCTGM International President David B. Durkee issued the following statement on behalf of all BCTGM members:
Two investment firms have been chosen as the bidders to beat for the Hostess Brands snack cakes division that includes the iconic Twinkies and that is being auctioned off as part of the Hostess bankruptcy proceedings.
The two firms are Metropoulos & Co. and Apollo Global Management LLC. Known as “stalking horse” bidders, other firms must beat their $410 million bid to acquire the division.
The 18,000 members of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) who've made our Twinkies and other classic snacks have a new ally in their struggle for their jobs and pensions and the brand's survival. The bakery workers' pension fund has engaged a prominent New York investment banking firm in connection with Hostess Brands' Chapter 11 bankruptcy filing, BCTGM announced.
Money that was intended for employee pensions was used by Hostess Brands management to cover operating expenses and workers were never compensated for the lost payment, Yahoo News reports. An undetermined amount of money that Bakery, Confectionery, Tobacco Workers and Grain Miller (BCTGM) members were supposed to receive as part of their contract with the company was used to keep the company running after mismanagement led to significant losses and eventual bankruptcy.
As part of its liquidation filing, Hostess is requesting approval to pay $1.75 million in bonuses to executives—the same executives who ran the company so poorly it is closing its doors and liquidating its assets.
The following statement was issued by BCTGM International Union President Frank Hurt in response to the announcement by Hostess Brands that it would begin liquidation.
“Hostess’s announcement that it is liquidating the company is a deep disappointment for all of our Hostess members. While Hostess management wants to blame our members for the demise of the company, the truth is that had it not been for the valiant efforts of our members over the last eight years, including accepting significant wage and benefit concessions after the first bankruptcy, this company would have gone out of business long ago.
While Hostess Brands is trying to scapegoat the workers and members of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM), the real cause of the company's collapse can be traced back to its crony capitalism and consistently poor management.