Current Edition- California Business Practice

The Peacemaker Quarterly- April 2014

Tuesday, November 20, 2012

Twinkies Shut Down on Hold


I thought it article was intriguing for a few reasons. The first was that it highlighted an important method of Alternative Dispute Resolution, or otherwise known as ADR. In class we learned about how ADR can be less costly and stressful to the parties at play. This article is about the Twinkies company, and how they are resorting to Mediation in order to find some resolution within this dispute.  Some basic facts on this  issue is: Bakery Workers union, which currently represents 5,000 workers, went on strike.  A few days later management shutdown Hostess and appeared before U.S. Bankruptcy Judge Robert Drain in order to liquidate.

Drain thought it would be of Twinkies best interest to try one last time to reach an agreement, and he is willing to serve as the mediator. These mediations would be very pertinent to this company because if the company permanently shuts down, 18,500 people will be out of work, which would be an extreme detriment to the United States economy. This action by a Judge is very notable because of his consideration to attempt to save this company. Although both the Hostess lawyers, and the union lawyers are entering into this mediation, they are all a bit doubtful of the outcome.