The company I have chosen to write my case analysis on is the Hostess Brands. Hostess Brands is known for its iconic baked goods like Twinkies and Wonder Bread. In 2012, Hostess Brands sought bankruptcy in Federal Court due to labor issues and company costs. Hostess’ long history and product brand was coming to an end, due to hard choices the company had to make and the demands of the union. It was a situation that brought about the collapse of a long-standing company amidst the protests of hundreds of employees demanding a new contract, but who in the end would lose their jobs and benefits. “This move would close the doors of 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores” (O’Toole 2012).
Continental Baking …show more content…
The movement was founded in 1886, and in 1957 the BCTGM was officially formed. Today the Baker’s falls under the Guidance of the Teamsters Union. The Teamsters are a formidable opponent when it comes to advocating for their members. Over the years, their collective bargaining with Hostess had always worked out for the members and management, avoiding any work stoppage. However, this time around the climate had changed and the outcome did not did not fare so well for the company or the …show more content…
“This action prompted massive layoffs and the closing down of hundreds of plants, bakeries, and delivery routes” (Fox 2012). Hostess did not have adequate financial resources to sustain a long drawn out protest by hundreds of their employees, which extended nationwide. In order to survive a financial disaster, Hostess attempted to sell its assets to the highest bidder. However, the attempt was a complete failure causing thousands of people to lose their jobs. In November 2012, Hostess filed for bankruptcy.
In conclusion of my analysis I would have to say, the Bakers were the biggest losers; their refusal to negotiate negatively cost them, as well as others employees, to lose their livelihood. Instead of settling for some concessions they ended up walking away with nothing and caused the financial suffering of hundreds of others in the food chain. Sometimes standing for what is right can be totally wrong, especially when you consider the long term financial effects on the larger population as a
Continental Baking …show more content…
The movement was founded in 1886, and in 1957 the BCTGM was officially formed. Today the Baker’s falls under the Guidance of the Teamsters Union. The Teamsters are a formidable opponent when it comes to advocating for their members. Over the years, their collective bargaining with Hostess had always worked out for the members and management, avoiding any work stoppage. However, this time around the climate had changed and the outcome did not did not fare so well for the company or the …show more content…
“This action prompted massive layoffs and the closing down of hundreds of plants, bakeries, and delivery routes” (Fox 2012). Hostess did not have adequate financial resources to sustain a long drawn out protest by hundreds of their employees, which extended nationwide. In order to survive a financial disaster, Hostess attempted to sell its assets to the highest bidder. However, the attempt was a complete failure causing thousands of people to lose their jobs. In November 2012, Hostess filed for bankruptcy.
In conclusion of my analysis I would have to say, the Bakers were the biggest losers; their refusal to negotiate negatively cost them, as well as others employees, to lose their livelihood. Instead of settling for some concessions they ended up walking away with nothing and caused the financial suffering of hundreds of others in the food chain. Sometimes standing for what is right can be totally wrong, especially when you consider the long term financial effects on the larger population as a