The childhood favourite Twinkie has recently resurfaced as the company sold its $410 million share to Metropolous and Company and Apollo Global Management. Both companies belong to the private sector. Daren Metropolous promises that the new Twinkies will be repackaged with a retro-look, as his company is also responsible for the repackaging and re-marketing of Pabst Blue Ribbon Beer.
While Twinkies is now available for public consumption once again, the union of bakers will not be hired to work for the new owner. Metropolous will not take the same direction as Hostess did. Indeed, this is not a great new for everyone.
The bakers union suffered an annual salary drop of $10,000 during Hostess ownership. In 2011, the company’s CEO tripled his wage. When Hostess announced bankruptcy, the company even requested the court to award a bonus of $1.75 to the current executive committee.
On one side, the bakers’ union was also tagged as greedy when the workers asked for unreasonable job demands. In addition, the continuous dispute in labour has led 20,000 workers to lose their jobs, however, analysts argue that Hostess already showed symptoms of being in the losing end during its final run.
Because of the termination of the bakers who were a part of the union, it is expected that Twinkies will be operated by those who were not unionised. According to a statistical study of the Bureau of Labour Statistics, majority of the workers are aiming to become a part of a union. However, laws on US labour and policies geared towards the administration are robbing off workers with their rights and benefits.
Although Twinkies is now back in business, it will not be the same for the workers who have fought for their work privileges. Thousands of demised bakers and workers will still be unemployed while the management works on shuffling their assets within them.