We want to force the company to liquidate, force the company out of business, and then someone will buy the factory and give us our jobs back. That is basically the message the local bakers union sent earlier this week in Billings, Montana. Bakers continued their part in joining a national strike even as management with Hostess Brands- the maker of Twinkies and other bread products- said the strike would force the company out of business and kill 18,500 jobs. Part of those 18,500 jobs includes at least 120 at the Hostess factory in Billings, Montana.
That will now happen and those jobs will be lost. Here’s what the CEO of Hostess had to say on CNBC: (h/t Washington Examiner)
The local bakers union in Billings has now gotten their wish- the company is going out of business and their jobs will be lost. The question now becomes- will someone else come in and buy the factory and give them their jobs back? It’s certainly a risky, yet plausible strategy. For example, a company like Franz could come in and buy the local factory, and then- after pressure from the bakers union- give the jobs back to the same people who led a strike under Hostess ownership. But would new ownership and consolidation in the industry lead to more or the same number of jobs even if the above scenario plays out for the union?
Even if the factory can find a new buyer, expect potential concern among farmers worried about consolidation in the marketplace. Lola Raska with the Montana Grain Growers Association says, “Our industry needs all of the processors, millers and bakers we can find in order to make our raw wheat product useable by the consumer and we hate to see any one of them go out of business.”