Jul 29, 2014

Hostess Workers Could Lose Their Jobs

Possible layoffs could come as a result of filing for bankruptcy. Company that makes well-known snack cakes could be sold.

Hostess Workers Could Lose Their Jobs

More than 300 workers at Hostess’ Wayne bakery could lose their jobs if the company decides to lay them off.

The 320 workers we mailed conditional WARN notices on May 4. The notices informed them that their employment with Hostess Brands Inc. could be affected, said Erik Halvorson, a spokesperson for the company.

The employees are some of the more than 18,500 who could lose their jobs as the company restructures its business model after it filed for Chapter 11 bankruptcy.

“The notices were sent to alert employees that a sale or wind down of the company is possible in the future,” Halvorson said.

Every employee received a WARN notice. These notices are sent to employees to inform them that their employment with the company could change in the near future.

Halvorson said that a “sale or wind down of the company is possible in the future” and that is why the notices were sent out.

“However, our goal is still to emerge from bankruptcy as a growing company wit ha strong future,” Halvorson said. “We are simply fulfilling our requirements by sending these notices.”

The company blamed its problems on cost structure and said that it is not competitive, mainly due to pension, medical benefit obligations, and restrictive work rules, NorthJersey.com reported Friday.

The bakery is located on Demarest Drive in a large office park off of Route 23 South.

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