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View Diary: Hostess Workers are Winning... (149 comments)

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  •  An Example of Hostess Underfunding... (11+ / 0-)

    I'm in the Twin City Bakery Drivers Pension Fund. It's a small pension plan, with a bit over a thousand participants. About half the retirees are from Hostess, because a couple decades ago Hostess had darn near half the market here and transport drivers, etc. as well. But in 1987 Hostess closed the bakery here and in 1998 they closed down the transport and warehouse operation. Customers don't like to buy stale or soon to be stale bread, and thus Hostess has gone from around half to at best 20% of the market. This resulted, even before the shutdown, in the loss of about half of Hostess employee's jobs. The resulting premature "retirements" have essentially created a "run" on the pension plan. Thus our pension plan has been pushed into "endangered" status, with disability and early retirement pensions eliminated and current pension benefit accrual cut by a third.

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