Good news for Hostess workers:
Pushed by a bankruptcy judge eager to save thousands of jobs, Hostess Brands and one of its biggest unions agreed to mediation on Monday, in a last-ditch effort to avoid winding down Hostess, the bankrupt maker of Twinkies and Wonder Bread.Republicans must be anxious. Their attempts to inflame and sensationalize the situation, in the name of further undermining workers' collective bargaining rights, may be for nought. I hope so, and we'll see soon enough.
At the behest of the judge, Hostess Brands and the Bakery, Confectionery, Tobacco Workers and Grain Millers Union, which represents 5,600 Hostess workers, will meet with a mediator on Tuesday to try to narrow their differences toward a labor agreement.
If the mediation succeeds, it could prevent the liquidation of the company and save 18,500 jobs. Otherwise, Hostess is likely to auction off its well-known brands, leaving the fates of those workers in limbo.
Oh, and if the mediation talks fail?
Financial investors like Sun Capital Partners and Metropoulos & Company have also said publicly that they are interested in pursuing a deal for Hostess. Sun’s co-chief executive, Marc Leder, told Fortune, “I think that we could offer a slightly better, more labor-friendly deal than what was on the table last week.”But what will happen to the poor Hostess CEOs? Will they still get their worker liquidation bonuses? What will happen to them?! Maybe I'll tune into Erin Burnett's show tonight to see.
(Source: NYT's DealBook)