Hostess Brands,a maker of breads and sweet goods in the US,has plans to permanently close its three bakeries following a nationwide strike by its bakers union.
The company,which produces Twinkies,Ding Dongs and Wonder Bread,said that the strike prevented the facilities from producing and delivering products.
Hostess Brands CEO Gregory F Rayburn said that while customers will not be affected due to the closures as the company will serve them from other bakeries,it will lead to permanent closure of three facilities and the loss of 627 jobs.
"We deeply regret this decision,but we have repeatedly explained that we will close facilities that are no longer able to produce and deliver products because of a work stoppage-and that we will close the entire company if widespread strikes cripple our business,"Rayburn added.
The bakeries to be closed are located in Seattle,St.Louis and Cincinnati.The Seattle facility employs 110 people and produces Hostess cake products;the St.Louis facility employs 365 people and produces Hostess cakes,Nature's Pride and Wonder breads;the Cincinnati facility employs 152 people and produces Butternut,Beefsteak Wonder breads.
Hostess has about 36 bakeries in the US,with a total workforce of about 18,300 employees.Earlier this month,it noted that the strike by 30%of the workforce may force it to shut down the bakeries.
On 9 November,members of the Bakery,Confectionery,Tobacco Workers and Grain Millers International Union(Bakers Union)initiated a strike in response to cuts to wages and benefits under a new contract offer,which was rejected by the union in September.
The company noted that workers must bear the concessions to improve its financial position.In January,it filed for Chapter 11 protection,citing increasing pension and medical costs for employees.
