Looks like mediation between Hostess and the union failed:
Hostess Brands announced on Tuesday night that despite the help of a mediator, it had failed to reach a new labor agreement with the bakery workers union – and union officials said the company had indicated it would proceed with plans to liquidate.
“It’s over,” said David Durkee, secretary-treasurer of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union.
I guess the union members would rather be out of a job than take a cut. Correct me if I’m wrong, but union members on strike don’t get unemployment benefits. So what would be the point of taking the hard-line in negotiations?