Since people have lost faith in their companies, most employees probably don't believe the company that they'll go out of business with a significant work stoppage -- and that they need to make these cuts to survive.Bankrupt Hostess Brands Inc., makers of iconic snack treat Twinkies, has been paralyzed by workers' striking over diminished health benefits and longer work days.Striking workers formed a picket line at the company's Sacramento, Calif., plant Sunday, two days after the walkout began when the company imposed a contract that would cut wages by 8 percent. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said the contract would also cut benefits by 27 to 32 percent.
The Twinkie has become such an iconic snack food that when she was first lady, Secretary of State Hillary Clinton included it in the millennium time capsule. But Irving, Texas-based Hostess might soon be history after workers launched the strike Friday.
Hostess CEO Grey Rayburn said the faltering company cannot handle the industrial action.
"We've been very straight forward that the business can't withstand the significant work stoppage," he said. "If this strike continues, there is certainly a risk that Hostess will go out of business."
Twilight for Twinkies? Hostess Workers Strike as Company Struggles - ABC News