Hostess workers in MI get possible layoff warnings

WYOMING, MI (Toledo News Now) - Just days after Northwood, OH Hostess workers found out the company may close their plant, more workers in Michigan learned of possible layoffs.

WOOD TV reports approximately 380 workers could be laid off in Michigan. This includes 70 jobs in Detroit, 65 in Troy, 44 in Grand Rapids, plus additional jobs will be cut from three other cities.

Mayors, township supervisors and county commission chairs in Wyoming, Comstock Park and Kalamazoo received the letters saying employees of Hostess manufacturing facilities in those communities could be losing their jobs in the next 60 days. The letters are a requirement in compliance with the Worker Adjustment and Restraining Notification (WARN) Act.

Hostess filed for Chapter 11 bankruptcy in January. According to WOOD, the company stated one of six outcomes could happen:

  • Hostess could sell all or a significant portion of its assets;
  • Hostess could cease reorganization;
  • More than 20 percent of the Hostess workforce could be laid off;
  • Hostess could have an "unsatisfactory resolution" from the bankruptcy court regarding modifications to collective bargaining agreements;
  • There could be a "strike, lockout, slowdown or other work stoppage" that would negatively affect the company;
  • Hostess could seek approval to sell property while in bankruptcy, which "accounts for more than 20% of Hostess' consolidated net sales" reported for the 2011.

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