The closing of Hostess Brands operations has affected about 18,500 workers across the country, and a number of them are from New Jersey.
The company filed for bankruptcy in May, and its bakers union went on strike about a week ago.
Hostess said it would be laying off 320 workers at its Wayne bakery and 70 at an outlet store in Carlstadt effective on July 3, 2013, according to Wayne Patch.
NorthJersey.com reported that the closing of the Wayne plant leaves about 560 New Jersey workers without jobs overall. Many Wayne workers said that employees had given Hostess a series of givebacks and concessions, but business had not improved, and the company kept asking for more.
Hostess gave employees a letter signed by chief executive Gregory Rayburn. It read, “There is no way to soften the fact that this will hurt every Hostess Brands employee. All Hostess Brands employees will eventually lose their jobs, some sooner than others.”
CNN Money reported that the letter said workers will not be getting severance pay or unused vacation pay, and Hostess is sending them to COBRA to extend their medical insurance.
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, representing about 6,700 Hostess workers, went on strike a week ago. Hostess gave them until 5 p.m. Thursday to end the walkout, or they would close operations. The union has been criticized for the stand by some unions, including the Teamsters.
The job market outlook was not bright for the laid- off employees, as food manufacturing has not regained jobs lost in the recession. Rayburn said the industry was overcapacity.
Hostess Brands had been running 33 bakeries, 565 distribution centers and 570 outlet stores nationwide.