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Phillip Wilson of the Labor Relations Institute discusses whether union regulations will spell the end for Hostess and the Twinkie.
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Could be decided in bankruptcy court today.
Process which makes the twenty line wants permission from a judge to get out of its contract with the labor unions if the judge approves that the union -- Dell struck.
But hostess says it will immediately liquidate the company if there is a strike.
And joining the company now is Philip Walton labor relations in I'm sorry.
Mr.
Wilson it is on a terrorist -- So -- politics that -- -- just got that wrong.
Now is -- us about to liquidate the -- do you think that's gonna happen.
Well I think right now you've got a situation where it the union and the company are basically holding guns and each other's heads.
The Teamsters have come out and said that they will strike that they that their members are you know are aware that that action would shut down the company.
The company has set a strike would would kill the company.
They be forced to liquidate.
And and that the company -- said that they can't get concessions and get out from under their labor contracts.
That they will be forced to liquidate the company as well yeah so you're you're gonna get this right.
I guess that I guess that that the union has a problem that if you -- -- that pension contracts.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- We don't want anybody to mess around with these pensions and if you do will bring the company down.
I think they're doing well.
That that's exactly what -- messages their messages will kill hostess and then the next company that tries to you know get out from under pension obligations.
What you know will kill you too and that that that's sort of where -- -- that the sad part about this is that they that.
They're good and that workers at post this.
Are really don't have a whole lot of voice here this is this is truly the international unions trying to prevent companies from from.
Getting out of these multi employer -- Will massively underfunded pension plans and the property -- that post this has has agreed to put all of its workers in and people that it has employed in its retirees.
Into defined benefit pension plans as they continue to find those pensions they don't have a problem.
Finding the pensions of people -- actually work for them to their problem is that their balance sheets getting killed.
By under underfunded pension plans that they -- nearly a billion dollars.
To bakery workers pension plan that's that that works out to two dollars per -- -- I don't know in the last me about a twenty but they're less than ten bucks will be.
With with -- has there ever been any kind of vote any kind of canvassing of opinion within the -- is within hostess we want we want to do this regardless of the unit we wanna do this is that any such vote been taken.
But you do that they -- the workers don't really get the vote you know sort of in line by line what they voted that.
They've gone on a strike throughout the strike pro was -- -- that the union says was 9010.
In favor strike but they're being told if you don't strike -- if you don't authorize a strike we have no leverage at the bargaining table with hostess and and they've even said can also just just yesterday that we're trying to send a message to the bankruptcy judge we're not just negotiating with -- now that you know they see themselves -- and.
I would a bankruptcy I've got ten seconds left -- I want you all best guess is host -- we've gone.
I don't see I'd give way out -- -- honestly.
I think that if they if they do get out of these contracts I think the unions will strike.
Whether they'll be able to survive a strike or not they don't sound like they're really -- -- that interest and in trying to survive a strike so at that point they probably liquidate.
Philip Wilson we thank you very much for joining us this morning I wanna follow this because it's a classic labor relations case and I -- -- follow it -- you if you -- -- -- -- being with us today.
Yeah thanks --
