# Hostess out of business; 18,500 jobs to be lost **URL:** https://forums.speedlife.net/t/hostess-out-of-business-18-500-jobs-to-be-lost/265503 **Category:** Shift518 Off Topic **Created:** [November 16, 2012, 5:34am UTC](https://forums.speedlife.net/t/hostess-out-of-business-18-500-jobs-to-be-lost/265503 "2012-11-16T05:34:59Z") **Posts on this page:** 1 **Showing post:** 74
### Author: ![Vovchandr](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/vovchandr/32/6275_2.png) [@Vovchandr](https://forums.speedlife.net/u/Vovchandr) #### Post date: [November 24, 2012, 12:58pm UTC](https://forums.speedlife.net/t/hostess-out-of-business-18-500-jobs-to-be-lost/265503/74 "2012-11-24T12:58:55Z")
> [@Snky Snky Starbucks Meet Sunday July 6th!!!!!!!!!!!!!](https://forums.speedlife.net/t/snky-snky-starbucks-meet-sunday-july-6th/50861/110): > > I stopped reading at page 1 but I’de like to respond to everyone talking about the wages of factory workers. > > Somone mentioned that a factory workers average pay is 20 dollars an hour. Call me insensative but to me, that sounds more than reasonable for an unskilled labor position.(not saying they arent good at their job, or that its easy) > > I think the main problem, I hate to beat a dead horse, is the federal government. It used to be that factory workers could work at said factory, buy a home, have a couple kids and they could support them and be happy. They would not be rich but they could get by, work some overtime and save some money to help with their kids school ect. Now, taxes on EVERYONE are so absurd, and you are taxed so many times on the same money that of course people cant make a living. > > This inablilty to survive on what I would call reasonable wages for unskilled labor then leads to Unions pushing for higher and higher wages to the point where companies have to succumb to these raises even knowing it will lead to some, or in this case everyone losing their job when the company goes belly up. In addition this is EXACTLY why this whole idea of taxing the higher income people, corporations MORE has a negative effect and people just don’t get it. You tax lower class people (which I’m not in favor of) you’ll get a group of lower class people who may be out a couple grand per year, they will struggle just a little bit more per year. You increase tax on a business who is already struggling against a union, wages, benefits, absurd gov’t regulations and procedures, ect…and you get a group of lower class people who, now instead of making a couple grand less per year, make 0 per year because the business is broke. IE hostess, a huge company, nationally sold…poof gone > > That makes no sense to you I’m sure, but I jus woke up after a midnight shift and it looks good to me > > EDIT: Keep in mind that these factory workers are probaby the LOWEST paid enployees, and they are also the highest in number and therefor have the greatest effect on the business. If 35% is “absurd” than our Federal Government hasn’t been able to get it right and allow economy to grow in since 1920’s… [http://shift518.com/showthread.php?t=32219](http://shift518.com/showthread.php?t=32219) :dunno Regardless of that, was the strike stupid? Yeah, they didn’t accomplish anything. Did it really matter that they striked? No the company was going under and planning closing many warehouses already, which makes the strike even more pointless, hard to bargain against a dying company. > As the national appetite for junk food waned, the company fell on hard times, struggling against rising labor and commodity costs. In 2004, it filed for bankruptcy for the first time. > But the new [private equity](http://dealbook.nytimes.com/category/main-topics/private-equity/?inline=nyt-classifier) backers loaded the company with debt, making it difficult to invest in new equipment. Earlier this year, Hostess had more than $860 million of debt. > The labor costs, too, proved insurmountable, a situation that has been complicated by years of deal-making. The bulk of the work force belongs to 12 unions, including the [International Brotherhood of Teamsters](http://topics.nytimes.com/top/reference/timestopics/organizations/i/international_brotherhood_of_teamsters/index.html?inline=nyt-org) and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. > The combination of debt and labor costs has hurt profits. The company posted revenue of $2.5 billion in the fiscal year 2012, the last available data. But it reported a net loss of $1.1 billion, largely from bankruptcy costs. > With profits eroding, the company filed for Chapter 11 in January. It originally hoped to reorganize its finances, seeking lower labor costs, including an immediate 8 percent pay cut. [http://dealbook.nytimes.com/2012/11/16/hostess-brands-says-it-will-liquidate/](http://dealbook.nytimes.com/2012/11/16/hostess-brands-says-it-will-liquidate/) Hard to stay in business when you’re debts and bills are more than your profits… :skid --- _[View the full topic](https://forums.speedlife.net/t/hostess-out-of-business-18-500-jobs-to-be-lost/265503)._