Members of the Bakery and Confectionery Union who are employed at the Dolly Madison plant learned this week that as of Dec. 10, the union’s pension fund will go idle because the company has stopped paying into the fund.
In a letter sent to union members by the Bakery and Confectionery Union and Industry International Pension Fund, members were notified that Hostess Brands Inc. had not paid into the employee-supported fund for the past four months.
“We regret having to terminate your employer’s participation in the Pension Fund, but employers have to pay the contributions they have negotiated, or the Pension Fund will not be able to pay the benefits that employees have earned,” the letter stated.
The termination will affect union members at all Hostess plants, not just at Emporia’s Dolly Madison location.
“This has just blind-sided us,” said Linda Bartley, local union representative. “It’s a mess.”
Union members learned in August that the company would stop paying into the pension fund, but so far no one knows why. According to the contract negotiated with the union, the company would deduct a certain amount from the workers’ paychecks and contribute an amount into the pension fund.
“It’s been that way since probably ‘63 or ‘65 when we organized that plant,” Bartley said. “What’s heartbreaking is that this money that the company’s paying in is wages. The employees told the company to set aside and put in, so they’re very upset.”
Many have speculated that Hostess is in trouble, but information about the privately-traded company is difficult to find. According to an article published in September in the Wall Street Journal, the company has struggled since emerging from bankruptcy in 2009. Rising food and fuel costs have hurt the company and hindered its recovery. Though the company has not filed for bankruptcy since, it does have Chapter 11 contingency plans, the Wall Street Journal article noted.
Officials at Hostess would not comment on the issue.
Employees at the local plant are wondering what’s next.
“It’s hard for us to say, because we don’t know,” Bartley said. “We don’t know if they’re filing, we don’t know if they’re going to sell, we don’t know what they’re doing.”
The effects on employees will be substantial. A person with 20 years paid into the pension fund would only receive a partial retirement, unless the company starts contributing again.
“It’s obvious that if the company is failing, they will never get the bulk of that pension,” Bartley said. “They’ll just get what that 20 years got them.”
With no answers, employees are growing frustrated.
“We’re talking significant amounts of dollars an hour that we contribute to this, and the company has not forwarded the money on,” said a worker who did not want to be named. “We’d like to know where all that money’s going but nobody has any answers. There have been no answers to the union, no answers to us.”
The issue could affect Emporia’s economy too, as many employees are exploring other options. Union members who wish to try to relocate to another union-affiliated company to fill out their pensions may have the chance to do so.
“Employees have already contacted the union seeking other employment for other plants such as the Sara Lee Bakery in Wichita,” Bartley said. “I have had lots. We can’t place everybody but that’s an option.”
“People like us in Emporia can go to Sara Lee and finish out our contract,” the anonymous employee said. “We can move to Wichita, Oklahoma City, Hutchinson. There’s an impact on this people don’t realize.”
In the meantime, employees at the plant are waiting for answers.
“I wish we knew more,” Bartley said. “We’re all in this together and we’re going to do everything we can.
“Everyone is scared, and the union is going to do everything it can for those employees to salvage what we can.”
reddog (K. B. Thomas Jr.) says...
The retirement trap.
http://www.lewrockwell.com/holland/ho...
December 2, 2011 at 2:35 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
A haircut looks better than a beheading.
http://www.lewrockwell.com/slavo/slav...
December 2, 2011 at 2:50 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Pension fund endgame.
http://www.youtube.com/watch?v=8hzpAY...
December 2, 2011 at 3:17 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Saw this coming years ago. I know it sucks and more and more companies are doing it. Well, the government pensions are safe for now.
Be forewarned Emporia leaders. These senior employees talking about moving is NOT feel good news.
December 2, 2011 at 7:45 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
What would our founding fathers do?
http://www.youtube.com/watch?v=VcVopc...
December 2, 2011 at 9:59 p.m. ( permalink | suggest removal )
hometownkid (anonymous) says...
hey reddog.
You owe me some money. do you plan on ever paying up??? You told me to my face you would.
December 4, 2011 at 12:05 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
NO SPRINKLER MONEY YET?
Come on, htk !
times are tough in the real estate business.
maybe Emporia can come to his aid with a hkbbasfd?
HELP K B BUY A SPRINKLER FUND DRIVE.
December 4, 2011 at 7:11 a.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
Get ready for a hit folks, the office workers might not be the only ones leaving town. Sure hope those rocks do their job, our tax and housing situation is going to take a hit soon.
December 5, 2011 at 2:54 p.m. ( permalink | suggest removal )
methusla (anonymous) says...
But, But, But, didn' t our City Leaders just say not too long ago that Emporia' s economy is looking up/improving .
And wasn't the whole selling point of the " Rocks " . The Rocks would serve to improve Emporia' s economy and image and would cause tourists and new Industry and businesses to come/locate to Emporia in " Droves " ???
An ad in " O " magazine was also a big success !!!
The light at the end of the tunnel is, We/Emporia will still possibly have a new Fanestil that will be partially paid for by what property/sales tax payers that may be left in Emporia and a ten year tax rebate given to Fanestil and don' t forget the 15 or so jobs that VEK TEK may create and the tax rebate they will possibly recieve also !
The new age math is rather crazy to my way of thinking .
City buys land for fanestil, $150,000 + extends utility/street service to new Fanestil property + $400,000 or $500, 000 + gives Fanestil a ten year tax abatement at approx. $150,000 plus per year total cost to City/taxpayers = $150,00 + $400,000 + $150,000 X 10years = $ 2,050,000 cost to City/taxpayers .
City possibly approves a tax abatement for VEK TEK for 10 years = possibly $100,000 per year for 10 years= a cost to City/taxpayers of approx. $ 100,000,000 total .
Total cost to City/taxpayers for bailing out Fanestil and VEK TEK tax abatement over the next ten years, approx. $ 3,050,000 . And this doesn' t
take into consideration the excess spending policy and possible tax increases wanted, asked for , imposed by NRH, ERC, SCHOOL BOARD, possibly increases in funding demanded or asked for by the RDA, EMS, ECVB, EAC, etc. .
City loses between a total of approx. 70 to 80 jobs and the payroll and taxpayers that possibly go with them.
It is obvious to me that this math spells, tough economic/tax times ahead for whatever, how many ever taxpayers that will be left in Emporia .
This also means that retail businesses may take a hit also, in they way of reduced sales/shoppers, money spent .
Which means that more people may lose their jobs . The domino affect could be large .
Could mean not such a rosey pink picture for Emporia or its taxpayers .
Rocks, Shmocks, they will still end up being high priced ornaments .
It is also my solomn opinion that " Tax Abatements " in times such as these are also a killer/severe strain of an areas economy .
Especially if they are given to old, already existing, established businesses or companies . Especaially if it does not create a significant number of new jobs, that pay at least the State average mean wage .
JMO
December 5, 2011 at 4:06 p.m. ( permalink | suggest removal )
methusla (anonymous) says...
For release: Monday, January 24, 2011
Technical information: (816) 285-7000 • BLSInfoKansasCity@bls.gov • www.bls.gov/ro7
http://www.bls.gov/ro7/qcewks.htm
COUNTY EMPLOYMENT AND WAGES IN KANSAS – SECOND QUARTER 2010 (PDF)
Average weekly wages in Kansas's smaller counties
Each of the 101 counties in Kansas with employment below 75,000 had average weekly wages lower than the national average of $865. Leavenworth County had the highest wage, $795. Comanche reported the lowest weekly wage among the smaller counties averaging $426 in the second quarter of 2010. (See table 2.)
When all 105 counties in Kansas were considered, all but 1 had wages below the national average of $865. Twenty-two reported average weekly wages under $500, 49 reported wages from $500 to $599, 26 had wages from $600 to $699, and 8 had wages above $700. (See chart 1.)
December 5, 2011 at 4:22 p.m. ( permalink | suggest removal )
create (anonymous) says...
Hey, Gazette,
How about an article on why my favorite filling station and oil change place up there on north Commercial has pulled up stakes.
I hear the new Shepherd building and its owners next door had a lot to do with that.
Let's hear it, Gazette. Let's hear what happens to free enterprise when individuals with money think they can make all the rules and push people around.
This is a real loss to a lot of people in Emporia. What a damn shame.
December 5, 2011 at 8:38 p.m. ( permalink | suggest removal )
railroadhorn (anonymous) says...
I called and told Russ Morgan about the filing station last week and he said the Gazette already reported it - LIE! Guy doesn't even know his own paper.
Yes, this is not cool and what did that apt building next door have to do with it?
December 5, 2011 at 9:55 p.m. ( permalink | suggest removal )
hometownkid (anonymous) says...
I must ask steve what is hkbbasfd and how did you hear why KB owed me some bucks??
Welcome to small town america. Plus, he was on his way to "Topeka" he didn't have time to deal with.....
And K.B. why do you post all those links???
December 5, 2011 at 10:38 p.m. ( permalink | suggest removal )
Rabid_Randy (anonymous) says...
Railroad,
The apartment building's construction crews were SLOW, and left the entrances to the station blocked off to where you had to come in from the side street. They also had the bait shop behind the gas station where you could only get to it from the alley. I tried to get gas once there a couple months back but couldn't get through there because a backhoe was digging up the sidewalk blocking the only entrance there was. Both the gas station and the bait shop shut down. I hear the bait shop has reopened where the old bait shop on South Commercial used to be.
It was kind of dumb to put such little store fronts in the bottom of the apartment building too. Do they expect anyone to move into those? They're too small and there's not enough parking in that area unless you're looking to attract more payday loan places.
I bet the spaces on the bottom stay vacant for quite some time.
December 5, 2011 at 11:28 p.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
hometownkid,
someone mentioned in a earlier post on these threads about a lawn sprinkler driven over by reddog. Thought it was you?
HKBBASFD stands for:
HELP K B BUY A SPRINKLER FUND DRIVE.
create,
Don't the same owners of the new building own the gas station land? And yes the full service gas station is probably a thing of the past.
Rabid_Randy,
I think the Granada Lofts were built with only 1 signed lease for retail. I think by this time next year it will be fully leased. i hope so anyway.
December 6, 2011 at 6:09 a.m. ( permalink | suggest removal )
create (anonymous) says...
Yes, the Shepherd family owns the new building and they also own and lease the gas station. I believe the Shepherds are all a part of S & S Oil. I wonder what they have to say about losing their lessee. Or do they even care.
I believe the lessee of the gas station has been fighting all kinds of problems with the builders who would leave all kinds of large equipment in the driveways where customers could not find a way to enter the station to buy gas or get an oil change. This has been going on for months and months!
I myself had trouble not long ago when I tried to get in to get an oil change. I had to come back a few days later when the giant piece of equipment that was blocking the driveway was gone. The damn thing was just parked there in Steve's driveway and blocking the entrance. It was not being used to perform any job.
Steve Corbin, you might want to check yourself on whether the full service gas station is a thing of the past. I don't know if you know the owner of Quik Lube, Steve Eckman, but perhaps if you introduced yourself to him he just might inform you just how important his business has been to many, many people. He may even give you a quick quote on how much money he has lost as a result of losing all his customers who went to him for full service and quick oil changes and couldn't get in the blocked driveways.
I was one of those people who appreciated full service because Steve kept a good eye on my car and they didn't just pump gas. Yes, full service gas is more expensive, but you get your tires checked, your oil changed, your windows cleaned and all those classic gas station services of the past. It worked for him and it worked for all of us who depended on him. I didn't mind paying a little extra for the extra care.
When the Phillips 66 station closed down after Brodie moved to his current location on 8th Ave, Steve heard from people, lots of people, who were so sad to lose the full service feature. He felt there were enough of them to warrant opening the place back up. When he did, I and others like me were ecstatic. I never went anywhere else for gas or oil changes.
I am handicapped and I appreciate all those full services. They were always helpful, smiling, courteous, and unlike these other stations around town, they didn't put a $150 freeze on my debit card for a lousy $50 tank of gas.
Steve, I urge you to go down to the Quik Lube on the corner of Congress and 6th and you talk to Steve Eckman, businessman to businessman. You will learn a lot.
I myself can't help but wonder if Steve's gas station wasn't looking as "high class" as that new building is. Was this just a way to get rid of Quik Lube so they can put something else in that space? I'm gonna hide and wait because I honestly believe that will happen.
This is how money talks. It walks on little silent feet and cuts your throat when you least expect it.
December 6, 2011 at 8:27 a.m. ( permalink | suggest removal )
create (anonymous) says...
Well Gazette, are you going to keep lying about covering this story or are you going to get out your little yellow pads and work on this?
Maybe this is how money talks.
December 6, 2011 at 8:30 a.m. ( permalink | suggest removal )
create (anonymous) says...
Before I am attacked on here for how I originally supported that new building, let me say this:
Yes, I have supported that new building just as I supported the Granada Lofts. Both buildings have been welcome additions to Emporia because they took the place of eyesores. Remember that old three story house that was falling down? It's gone now and the new building looks great in its place.
HOWEVER, I do not support that new building when the owners of that building are willing to push business people around like they are nothing but pawns. Steve's business was not an eyesore and he worked hard to keep it clean. He took a risk in the beginning to offer a full service gas station to all of us and it was a risk worth taking because we all benefitted, he and us.
No, I no longer support that new building because of what they have done.
December 6, 2011 at 8:43 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
I do not know the details of that gas station, or why it shut down. If it was because of construction next door he may have legal recourse. Maybe it just wasn't making enough profit to stay open and the construction tipped it over the brink? i just don't know, but it is a loss.
There was risk involved in keeping it open and I am glad he had the guts to try it. We need more entrepreneurs with guts and moxie in our country,
I know he has a family to support and hope this does not affect them too adversely, and wish nothing but the best for him and his family.
December 6, 2011 at 9:01 a.m. ( permalink | suggest removal )
create (anonymous) says...
Like I said, Steve, go visit with him. If you do, you wouldn't say he wasn't making enough profit to stay open. That is far from the truth. What would happen to your own business if for months and months on end, people couldn't use your entrances to go in for a drink? I realize you and others on Commercial St. may have had a few short-lived problems when the water main was being installed earlier this year. But this is nothing like that.
December 6, 2011 at 9:32 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
create,
Cheese and beans,
I did NOT say he wasn't making a profit. NOTE THE WORDS above, "I DON'T KNOW" and "MAYBE" !
I do not have to go talk to him, talk is cheap. To really know the cause, a person would have to look at the books of the business.
And that is none of my, or your business is it?
And as I said, if those books showed a loss of business due to the construction he may have legal recourse.
I would imagine that the water main construction didn't help him much either. Or the alley way construction behind him
I drive that street daily and never noticed blocked drives for "months on end".
December 7, 2011 at 8:36 a.m. ( permalink | suggest removal )
create (anonymous) says...
I couldn't get in to get gas or oil change several times and had to go elsewhere as a result of big pieces of equipment in the driveways. That may not be "months on end" (slap my face!) but I do remember seeing those large pieces of equipment blocking driveways several times. It doesn't take long to lose business when that happens. I too drive that every day, and I remember seeing those big pieces of equipment and wondered at the time how that was affecting business for Steve. Perhaps I should have taken pictures and written down dates.
December 7, 2011 at 8:53 a.m. ( permalink | suggest removal )
methusla (anonymous) says...
create (anonymous) says...
Yes, the Shepherd family owns the new building and they also own and lease the gas station.
Perhaps the above statement says it all, especially when it comes to " leases and leasing " of properties or businesses .
Not attacking or getting on anyone's a$$ . Just saying, no one knows the real cause of the station closing, except the party' s involved .
December 7, 2011 at 9:04 a.m. ( permalink | suggest removal )