Hostess to Terminate 15000 Employees
By: Leon Castles
on Saturday, November 24, 2012
Dallas based Hostess Brands has decided that they would return to the normal bankruptcy procedures as the mediation between the company and the union has failed. The company said that they have tried to mediate with the union workers but they were unable to reach any conclusion and therefore they have decided to terminate the workers and go ahead with their bankruptcy filing procedures. The company said that they will layoff around 15,000 workers on Wednesday and that is going to hit the economy of Dallas in a huge way because there will be too much of layoffs happening.
Hostess Brands CEO Gregory Rayburn said that they have tried to talk with the union workers and they have not been able to get satisfactory results. Hence, they are going with the regular proceedings that will terminate around 15,000 workers at the moment. The company said that the rest of the workers will be working in the company for unspecified period of time to clear plants and mothball equipments. Hostess Brands said that there is too much of competition in the same category and therefore they are unable to make more profit. The company said that it was the union that decided that workers should stay out of work and the company had provided them with the deadline to return to work. Since both the parties stood firm on their stands the company decided to act and shut down the doors permanently.