ou. visit celebrex.com and ask your doctor about celebrex. for a body in motion. [ticking] >> if the president would like a window on the most threatening problem in america, he'll find it in wilmington, ohio, where unemployment has reached levels not seen in decades. it's a company town, and the company is leaving. >> you just have to start doing, and you do without things, and... your son drops out of college early. >> he dropped out of college. >> yeah, we had to-- we had to pull him. [ticking] >> of all the bakeries in america, this one takes the cake, not only for the way it runs its $5 million-a-year business, but for taking otherwise unproductive members of society off the streets and

putting them to work baking up a storm for a clientele that includes some of new york's best restaurants. what also makes this bakery different is that the dough they work with produces some of the dough that supports a foundation for the needy. >> welcome to 60 minutes on cnbc. i'm steve kroft. in this edition, scott pelley reports on hard times in a small midwestern town, and later, bob simon's story on a yonkers, new york, bakery that became a role model for social activism and small business success. we begin with the plight of wilmington, ohio. when president spoke of "the winter of our hardship" in his inaugural address of 2009, no one understood it better than the people in wilmington. they were in the grip of a brutal series of layoffs at dhl, the air shipping company, at a time when claims for unemployment benefits in the u.s. were the highest in nearly 30 years. in december 2008, just before

all the speeches and parties of inauguration day, scott pelley headed to ohio to find out what questions the families in wilmington were asking. >> are we going to lose our home? you know, are we going to be able to pay our property taxes? what are we're gonna do for insurance? what are we're gonna do for food? you know, and these are questions that you'd never think that you'd ask yourself, you know. and now they're discussions in the home. >> bear hug, big. >> [grunting] i love you, buddy. >> mike o'machearley is losing the job that helps support four children and a grandson. they always say that god closes a door, he opens another one. we have faith that he will. >> faith is what sustains wilmington now. settled by quakers 200 years ago, it's a community with such an all-american look, that it seems like a movie set. about 12,000 people live here, and many, like o'machearley, work in the last industry you'd

expect in a laid-back town. in 1980 airborne express turned wilmington's abandoned air force base into a hub for overnight shipping. >> dhl 934, wilmington tower. >> 8,000 people found work at what they call "the air park." then, in 2003, a german company, dhl, bought airborne in an effort to win a big piece of the u.s. market. it didn't work. the merger was rocky. there were service interruptions. customers left. and with the economic crash, dhl was losing $6 million a day in the u.s. layoffs started coming by the hundreds. is everybody a thursday layoff? everybody got laid off on thursday? most everybody. people who have worked here for decades found themselves in dhl-sponsored meetings learning about unemployment. >> we could tell you what we did on a daily basis, but you wouldn't believe it.

you know, boxes in a big container, and it'll weigh 800 pounds. you push it out the door through 8 inches of snow and push it up on a barge, and we were idiots enough that we did it by ourselves. we worked as a team, and we had a good friend right alongside of us. >> you're losing a lot more than a job. >> our friends. it's crazy. you'll never understand it. but we loved it. >> i remember people with scarves breathing through ice, and just unreal, eyelashes frozen. and i started in '81, and when you worked, you worked. why weren't we bailed out? >> dhl is spending $260 million on severance pay and health insurance that will keep many workers going for several months, but there is a feeling in town that the german company wrecked a successful american business and wiped out thousands of jobs. >> i was educated here, wilmington city schools, and then at wilmington college. >> and now you're the mayor. >> and now i'm the mayor. there were 576 hourly employees.

>> for months, mayor david raizk has been getting layoff notices. by federal law, companies have to notify local government when layoffs are coming, and raizk is getting a new letter from dhl every week or so adding a few hundred at a time to the growing list of lost jobs. >> it's got classifications and numbers on it, but there's not names and addresses and who their wife or their family or their children are, and so you look at these, and at the end of the day, you think, "that's 800 and some people, folks, live here, work here, you know?" >> the mayor told us one out of three households has a family member working at the air park. you are what people around here call an air park family. >> absolutely. >> angela and john peka are raising four children on two air park salaries. angela started at airborne

express when she was 19. now as a supervisor, she walks laid-off workers to the company gate and takes their i.d. badges away. >> i escorted five individuals out today, and last week i think i escorted three. >> what's the last thing you say to them? >> i tell them that i wish them the best and it's been a pleasure working with them, and it has been a pleasure working with every one of them, because they're a great bunch of people, and they deserve so much better than this. [ticking] >> coming up, hard times and tough choices. >> i just can't afford my house. i can't afford the payment. and i had to look at, you know, trying to just feed my family, my kids. that's my priority. >> when was the last time you made a house payment? >> it's been three months ago. >> that's right ahead when 60 minutes on cnbc returns. [ticking] 3q we always hear about jobs leaving america.

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>> for a town as small as wilmington, ohio, the impact of the dhl layoffs is like the trauma of katrina without the physical damage. people like to say their jobs drive them crazy, but for many, work keeps them sane. >> on november 2, 2003, my son was killed over the skies of fallujah in a chinook helicopter that was shot down, and he died with 16 other soldiers.

>> in iraq. >> yes. >> at that time, mike o'machearley was working at a plant, making parts for new cars. >> and the outgoing vice president from airborne express, he knew i was having some problems, and he said, "yeah, we need bus drivers. come on back out." >> the job at dhl, after his death, meant a lot to you. >> yes. i was working on a machining line at a factory, and all i could see was his face, all day long. and it was killing me inside. and this job meant that i could see different people and talk to people and kind of become a human. [chime music] >> by christmas, the mayor had received 14 layoff letters and 3,000 people were out of work. 5,000 were still on the job at dhl, but things were getting bleak for them too. about this time, a lot of people

in the air park began to see their schedules cut. instead of working eight hours a day, they were working four, and of course, that cut their income by half. they weren't unemployed; they were underemployed. and it turns out, in this country, that the number of people who are underemployed is roughly the same as those who have no job at all. combine the numbers, call it "the suffering index," and it comes to about 13% nationwide. it is certain to get worse. gerri lynn thomas and bruce mckee saw their hours cut in half. >> i just can't afford my house. i can't afford the payment. and i had to look at, you know, trying to just feed my family, my kids. that's my priority. >> when was the last time you made a house payment? >> it's been three months ago. >> you start stocking up on groceries. you buy an extra can of soup or something or toilet paper, package of toilet paper, peanut butter, stuff that you can stock in your cabinets and and stuff in your freezer. >> you've been building a stockpile of food.

>> yes, so you just have to start doing, and you do without things, and... your son drops out of college early. you just do what you have to do. >> he dropped out of college? >> yeah, we had to-- we had to pull him. he didn't go the fall and winter sessions this year. we don't have the money. >> did you go to college? >> no. >> your husband? >> no. >> so this was your dream. >> oh, yeah, it was my dream for my kids to have better than i had, and now they're not going to. >> dreams are closing on south street, as one layoff creates another. >> i think one in five small businesses will fail, or could fail. >> mayor david raizk also worries about what happens when thousands of people lose their health insurance. >> approximately $8 million worth of revenue for our local hospital was derived from the insurance.

now, if you take away that $8 million, plus how much charity care is gonna increase because people don't have insurance, you could put the hospital out of business. and you think about that. >> our whole staff had a meeting, and they said that they would take a pay cut... >> in town meetings, businesses are begging for help. >> u.s. senator sherrod brown is asking for $100 million in federal aid for distressed communities all around the country, and he's trying to get dhl to at least donate the air park to the city. >> there's hurt. there's a sense of betrayal. >> "betrayal" is a strong word. >> dhl came in and made promises, and i don't think they lived up to their side of the bargain. that's the past. we can't dwell on that. we need to move forward. dhl, we hope, is going to help us with the air park. >> in the meantime, the sugartree ministry soup kitchen is expanding. >> we're actually building-- remodeling our room over here, adding 200 more seats. >> that would be about double

what you're doing now. >> exactly, we should be able to feed about 350 people a day. >> you can talk about possible medical options. >> dhl workers in their meetings just heard that the state unemployment benefit fund went broke last week. the federal government rushed in with an emergency loan of $500 million just to keep the checks coming. the feds are also spending $4 million here to train workers in computer skills, but that doesn't mean there will be jobs. the laid-off workers are guaranteed access to health insurance for a year and a half under a federal law called cobra, but there's a catch. but there's a catch. >> we got the cobra, and it was gonna be, like, a little over $1,500 a month... >> that's a lot of money. >> for my healthcare. well, you know, my unemployment's gonna be $200 a week. that's not even gonna make a dent. >> when you're looking forward now, what questions are on your mind? >> where we gonna go to next?

>> where you're gonna go to next. >> yeah, basically. we got two families living in my house right now, my husband, mike, and my youngest daughter and her husband and a little baby and another one on the way. they can't make it on their own, and we can't make it. >> and scotty will have to answer the question. >> john peka may have a dhl job in another city, but they can't sell the house in this market. angela, the dhl supervisor, is so worried that she's been looking for work too. >> not one call-back? >> no. >> how many places have you applied at this point, would you say, roughly? >> i would say between 35 and 40. and i've been applying for everything, for everything, in retail, in supervisor positions, warehousing positions. i don't think anything's beneath me to do, so... but i still haven't received any call-backs. >> three weeks later, angela, who spent months walking

laid-off to the gate, found herself among them. today is my last day. gonna be surrendering my badge to my manager today after 18 years. it's a little--i'm 37, so that's almost half of my life i've been there. >> so it's real now. >> mm-hmm, yeah. >> and i see they took your badge. >> yeah. >> what are you thinking? >> [sighs] i just can't believe it's over. i'm not gonna see a lot of these people again. >> and with his job as a dhl bus driver ending... [pounding] mike o'machearley is relying on himself. he's turning a hobby into a business, making engraved hunting knives for collectors. >> i'm an old-school kind of guy, and i'm looking at, maybe, like, on tuesday nights, we're gonna have no electricity tuesday nights. we're gonna light the oil lamps and play checkers and read books

by the candlelight and just talk to each other, and maybe we'll become a tighter family through it. >> dhl will shut down all its u.s. shipping except international service. altogether, about 10,000 people are losing their jobs. >> call it ground zero. wilmington is ground zero. we've got to get back to being america, because right now we're losing sight of what my son died for and what those other 16 soldiers died for. we're losing sight of it. we need to fight hard to get it back. >> wilmington, ohio, is exactly the kind of town that washington hoped to rescue with stimulus spending, cash for clunkers, and mortgage relief programs. a year after his first visit, scott pelley returned to wilmington to see if the town and its residence were emerging from a long recession. more from wilmington when 60 minutes on cnbc returns in a moment.

[ticking] as a chef we are always committed to our suppliers...

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i bathed it in miracles. director: [ sighs ] cut! sorry to interrupt. when's the show? well, if we don't find an audience, all we'll ever do is rehearse. maybe you should try every door direct mail. just select the zip codes where you want your message to be seen, print it yourself, or we'll help you find a local partner and you find the customers that matter most. brilliant. clifton, show us overjoyed. no, too much. jennessa. ah! a round of applause. [ applause ]

[ male announcer ] go online to reach every home, every address, every time with every door direct mail. [ticking] >> by the end of 2 the so called "great recession" had destroyed more than 7 million jobs, and that was just the half of it. millions of people had their hours cut to part-time or had quit looking for work altogether. that combined number came to 17% of the american workforce. pockets of severe unemployment all across the country included places like wilmington, ohio. scott pelley first reported on the town's plight in december of 2008 when its major employer dhl was laying off thousands of employees.

a year later, he went back to wilmington to get an idea of what it was going to take to bring the country back from the long recession. [auctioneer shouting] >> in wilmington, two days ago, >> $114,000. >> 59 homes went to the auction block. the struggle to make the mortgage or work things out at the bank ended in foreclosure. >> sold, $141,000. >> cold in here now. >> it's cold. it's cold. the electric's shot off. the gas is shut off. >> jim curtis' home was auctioned on friday. it went into foreclosure after his payments doubled and then he lost his job. curtis moved his wife and his boys out well before the auction to get it over with. when you received that foreclosure notice... >> ugh. >> what did you think? >> uh... i let my family down. um...

i've always been kind of taught--i'm sorry about that. i've always been kind of taught to stand on my own two feet and that i'm responsible for taking care of them. and it's... it's tough on us. >> curtis built a career 24 years at airborne express, later bought by dhl. the courier's national hub was wilmington's old air base, what they now call the air park. curtis managed more than 100 people in the hazardous materials department. but when dhl express closed its domestic delivery service, 10,000 people lost their jobs. when we visited last december, dhl was counseling workers on unemployment and retraining, and like many, laura walker was scared. >> to me, it was like being on the titanic. it's not only filling with water; we're going down.

>> she grabbed at every lifeline. in the year since we met her, she improvised jobs and went to classes in medical records management, a new field where she might find work. there were new textbooks to buy... >> [laughing] there goes all my money. >> an oven to fix for a side business baking cakes... >> okay, that ain't gonna work. >> and a job at a farm supply for which she's paid in bales of hay. you're getting pay with hay? >> i'm getting paid with hay. >> the hay is for horses she still has from the days when her late husband raised them on the farm she's struggling to keep. she had to put two of them down recently. they were old and sick, and she couldn't afford to care for them anymore. >> you look out in the field, and you think, "well, who can i euthanize?" and you start with the older ones, and you go from there. >> with bartering, baking, and unemployment, she and her daughter allison live on 1/4 of her former paycheck. >> this is another notice that they're gonna turn my electric

off. you know, i can't go without car insurance. i can't go without my life insurance. i don't have health insurance, 'cause i can't afford it. >> wait a minute. you have life insurance but not health insurance? >> right. >> why is that? >> i'm more concerned about allison having a roof over her head than i am about me. >> you're more concerned about your daughter's future than your own health. >> sure, 'cause i'm not gonna leave her. you know, after my husband died, it hits you like a ton of bricks, you know: "i'm a single parent." and she was 13, and if anything happens to me, what's gonna happen to her? >> people started asking that kind of question last christmas. [o come all ye faithful] ♪ they bought presents on severance pay then, but this holiday is different. the pawn shop has filled up with anything and everything a family can sell. with christmas '09, wilmington and many places in the country are facing something new

in unemployment. it's one of the unique things about the great recession. never before have so many people been out of work for the long-term, at least not since they started keeping records back in 1948. today 40% of all of those who've lost their jobs have been out of work for six months or more. there's a ripple effect that reaches all over town. tax receipts are down, so the schools cut $1 million from their budget. the hospital lost $7 million when many of those air park workers who'd once had insurance became charity cases. >> hey, sweetheart, how are you today? >> dr. seema nadkarni ran the pediatric clinic, which the hospital could no longer afford to keep open. she welcomed poor families on medicaid that other practices wouldn't take. the clinic had 2,000 patients, many of them chronically ill, like this five-year-old named desire who has spina bifida. >> that's what breaks my heart.

these children, you know, they're great kids, and it's really difficult. it's hard for the parent who is fighting, you know, foreclosure and fighting--trying to find employment, and now they have to look for a doctor for their child. >> the clinic was shut down last week. 2/3 of the patients haven't found a new doctor. >> that was the hardest part of closing this office, was, "what about all my kids?" you know, and that--i just have trouble finding words to describe. >> and you don't have an answer to that question. >> i don't, unfortunately. i don't. [ticking] >> coming up... >> mr. mayor, you're paid to be an optimist, and i think you're an optimist by nature, but we're talking about 10,000 jobs. those are not coming back soon. >> it's gonna be very difficult to get them back soon. you know, how do you look at the glass? is it--unfortunately, ours is not half full or half empty.

it's almost empty, and we've got to start adding some water to it. >> that's right ahead on 60 minutes on cnbc. >> um...cream cheese. [ticking] [ male announcer ] this is lawn ranger -- eden prairie, minnesota.

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>> you guys want to go ahead and open up your internet. >> wilmington is being helped by federal emergency aid. $8 million went to retraining workers, and washington spent more than $1.5 billion bailing out ohio's bankrupt unemployment fund. but other programs you've been hearing about have been less helpful than you might think. david raizk is the mayor of wilmington. he applied for some of the stimulus money and got a paving

project for main street. how much does that come to? >> about $5.1 million. >> and what would you be able to do with that? >> well, first of all, it will create jobs locally, the construction jobs. >> how many? >> i would say somewhere in the neighborhood of 100 to 200 jobs. it could create that many. >> 200 out of 10,000 lost. raizk doesn't know how many of his citizens have moved away, but he has a clue there is some kind of exodus. the revenue from the water utility is down by 1/3. >> everybody's cut back, whether it's been the government, whether it's been individual families. you know, they're pulling those belts pretty tight and putting extra holes in them. >> mr. mayor, you're paid to be an optimist, and i think you're an optimist by nature, but we're talking about 10,000 jobs. those are not coming back soon. >> it's gonna be very difficult to get them back soon. you know, how do you look at the glass? is it--unfortunately, ours is not half full or half empty. it's almost empty, and we've got to start adding some water

to it. >> the town runs on hope at this point. >> the town runs on hope. >> a lot of hope came wilmington's way in the year after our first story. in february, a dozen trucks from the charity "feed the children" rolled down main street. folks lined up for blocks, thousands of them, for free food. in may, jay leno staged a benefit show here. >> oh, my gosh! >> in october, rachael ray sponsored an extreme makeover of the sugartree ministry soup kitchen. and the people pulled together. in the fall, they harvested community potatoes, part of a drive to grow food all over town. >> bin 15, three bags, family 221. >> now, in december again, the line this time is for christmas gifts donated by folks who have a little something to spare for neighbors who don't. >> what can i get you today? we've got pies back there as well, if you like that. >> folks who are out of work

are volunteering. anita bach used to work two shifts at the air park, sleeping in the company cafeteria in between. now she helps out in the soup kitchen. >> hi, how are you? >> but what wilmington has learned in this year of unemployment is that charity, retraining, and government can't replace the enormous number of lost jobs. while anita bach volunteers, she and her family also get most of their meals in the soup kitchen. >> how are the children coping with the economy? >> one day at a time. my son, he had come to me and asked me if i had a couple extra dollars to give to the homeless shelter or if we had any extra toys at home that they can give to 'em for christmas. >> your kids are looking for extra toys at home that they can send to the homeless shelter? >> yes, so they have christmas as well. >> this christmas, many in wilmington sorely miss the dignity and purpose they once

had. laura walker says she learned that years ago when her late husband roger lost his job as a machinist and refused to be anything else. >> i watched what he went through by not making the concessions, by not making the changes. he didn't go back to school. he wasn't willing to think outside of the box. >> he couldn't find full-time work for six years. then he was hired again and given business cards and a lapel pin by his new company. before his first day on the new job, he had a heart attack. >> and i went to the hospital and i went in, and i was so surprised, and you know what the first thing he said to me was? "what about...my job?" [laughs] the first thing he said to me: "what about my job?" that's a hard thing to take. and then he died sunday morning, and i was there holding his hand when he died. and at the funeral, at the visitation, i took that card, that business card

with that lapel pin, and i put it on his chest so everyone could see, and before they closed the casket, i slipped it in his hand, 'cause he was so proud that he finally had that job. i don't want that to happen to anybody else. >> in wilmington, they say it's a bad day when you get a thick newspaper. jim curtis' house was listed among six pages of homes up for auction. ten years ago, his company used him in a video when he was head of hazardous materials, and at one time, he was vice president of the company's charity. now he's sending out resumes. >> 123, to be exact. i was counting them up the other day. 123 resumes have been sent out. >> and what are you doing to make ends meet? >> i have my unemployment, while it lasts. i do odd jobs, anything. i've cleaned houses, scrubbed toilets, waxed floors.

[o come all ye faithful] ♪ >> in wilmington, the third christmas of the great recession is about improvising, pulling together, and discovering generosity among those with little to give. >> it's about people helping people. it's about neighbors helping neighbors. what is the spirit of christmas? the spirit of christmas is wilmington, ohio. if you don't have any christmas spirit, just spend a day in wilmington. you'll get it. >> since our report first aired, wilmington's economic struggles have continued, but the town's spirit remains unbroken, and a few seeds of economic recovery have been planted. wilmington and its surrounding counties have received several million dollars in federal and state financial aid, and in june 2010, in a move expected to help business development for the town, dhl donated 1,500 acres of the air park to the clinton county

port authority. [ticking] coming up, where the unemployable get jobs. >> we get people who are straight out of prison. we have people who are just coming out of substance abuse programs and need an opportunity to make a go of their lives. we have people who are returning to work from the welfare rolls. >> and rehab centers and probation officers know that you're a man to call. >> yes, absolutely. >> the remarkable story of the greyston bakery when 60 minutes on cnbc returns. [ticking] americans are always ready to work hard for a better future.

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>> how did a bakery in yonkers, new york, end up not only making cakes for the rich and famous but also supporting the poor and the disenfranchised? the greyston bakery is a social experiment that started more than 25 years ago with a goal of employing the chronically unemployed, getting them off the streets and back into the workforce. not only that. the profits from the bakery are used to help fund daycare centers, health clinics, and counseling services. as bob simon reported in 2004, the greyston bakery has become a role model for companies that want to inject some social activism into their business. >> the greyston bakery is located in an old building in the section of yonkers where the well-heeled do not walk,

where inside a few cramped rooms, the bakers make gourmet cakes which are served at the finest restaurants--cheesecakes, chocolate cakes, mousse cakes. they also back wedding cakes and cakes which have been served at the white house. it's a $5 million-a-year business. but the bakery doesn't hire people to make cakes. it makes cakes to hire people, people like rodney johnson, a former drug dealer. he got his g.e.d. in jail and his first legal job here at greyston. you were making $5 an hour when started working at the bakery. >> yes. >> what were you making in the streets? >> a good week? $2,000, $3,000. >> how did you manage to stick with a job paying $5 an hour when you could make a couple thousand a week in the streets? >> i had a child, wanted to show her something different. >> and he says his drug dealing taught him some useful job skills. >> when it comes to having a job to get done, at the bakery, we try to meet that quota. you know, on the streets, when i had "x" amount of drugs,

i tried to meet that quota. >> it's business. >> business. >> but... >> at the end of the day, i don't have to worry about police coming. i don't have to stash crack. i don't have to run into buildings, things of that nature. >> no, rodney makes cakes and brownies now. he says he owes much of his turnaround in life to julius walls, the c.e.o. of the bakery, who gave him and other like him a chance. you are employing people who are generally considered by most businesses in this country to be... >> unemployable, hard to employ. we want to get the crumb structure a little tighter, give it a better mouth feel. >> walls was studying to be a catholic priest but left that calling to have a family and enter the business world. he now calls greyston his "ministry," and he believes anyone, anyone deserves a chance to work. >> we get people who are straight out of prison. we have people who are just coming out of substance abuse

programs and need an opportunity to make a go of their lives. we have people who are returning to work from the welfare rolls. >> and rehab centers and probation officers know that you're a man to call. >> yes, absolutely. >> the bakery has a unique hiring policy. every other wednesday is open hiring day. applicants gather outside the bakery. if you've got one job opening, for example, and you've got two applicants, and one of them is a clean-cut high school kid and another one is off the street, how do you make up your mind? how do you do it? >> it is somewhat by chance, because we number the applications, and so... >> whichever guy showed up first? >> whichever guy showed up first. >> most new employees start out as apprentices working on the brownie line, where the work is repetitive and the temperature can get up to 90 degrees. about half drop out, but the other half go on to get full-time jobs with decent pay and benefits. why run it for profit? why not just run it as a charity? >> we understand that most people that come to work for us

aren't gonna stay with us forever, and they're gonna have to go out and work for someone else, and we want them to understand what it means to have a real job. >> the bakery employs some 65 people, people like dieulane philogene, who left haiti as a child and became a homeless teenage mother. dieulane, how old were you when you came to this country? >> 11. >> and you've been on your own since... >> 14, 15. >> was life pretty rough? >> sure. at some point, i ended up being in a shelter and stayed there for about a good couple of months or so, and i didn't think that was a good thing for me either, and i got pregnant and left school. >> how did you land at greyston? >> i applied, and they told me to keep in touch, and so i went to greyston every morning, and i stood in front and waited until a position was given to me. and one day they told me they had a full week's work for me, and, oh, i was so excited. >> today dieulane works in accounting at greyston and provides a stable home for

herself and her two children. and rodney, who's been at greyston nine years, is the production manager of the entire bakery. does it make any difference that you're making very fine bakery products as opposed to doorknobs? >> there's a little more love and finesse put into a cake as opposed to a doorknob, unless it's an elegant doorknob for a mansion. but no, i like cakes. cakes are good. cakes have been good to me. >> specifically these cakes, with names like peanut butter explosion, venetian wine cake, and their best seller, triple chocolate mousse. how many calories do you think are sitting on this table? >> oh, zero. >> zero, oh. >> [laughing] >> that's what i was hoping you'd say. >> this is such an interesting cake. this is a lotus in mud, as in lotus flower in muddy waters. >> is this the flower? >> that's the lotus flower, handmade from buttercream.

>> buttercream? >> buttercream. >> mm. >> again, made from scratch, and made with real butter. and this cake... >> you sure that's real butter? i should probably-- >> you should try it again. yeah, check it again. [laughs] >> perhaps, yeah. greyston cakes retail for about $35 and are sold at gourmet food shops, on the internet, and at upscale restaurants. do these famous restaurants where you sell your cakes know who's making them? >> some do; some don't, don't know at all. i mean, the most interesting thing about most of the famous restaurants, who i can't name, is because they actually put the cakes out and say they make them. [ticking] >> coming up, transforming lives one cake at a time. has greyston given you hope for the future? >> oh, greyston has given me more than hope for the future. greyston has given me my life back. >> the greyston bakery continues when 60 minutes on cnbc returns.

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they can produce items that only the french chefs could create. >> did it go very smoothly at the beginning, or were there a lot of problems, a lot of obstacles? >> we had a tremendous amount of obstacles. i almost went broke a few times. >> the bakery, which started in 1982, struggled for years until it struck up a deal with ben & jerry's, the vermont ice cream company with a social conscience. ben & jerry's hired greyston to make extra thin brownies for ice cream sandwiches. it was the biggest customer the little bakery had ever had. and according to ben cohen, the ben in ben & jerry's, there was a problem with the first batch of those extra thin brownies. what went wrong? >> the brownies all stuck together, and they clumped up into this 50-pound block of brownie. when we got these huge blocks of 50-pound brownies, it was really hard to pull them apart, and mostly we got little

bits of brownies, and we said, "well, what can we do with these little bits of brownies?" we said, "well, we'll try shoving them in chocolate ice cream and make chocolate fudge brownie ice cream," and that's how the flavor came into being. >> the birth of a flavor. >> greyston brownies are in three of ben & jerry's flavors, including, of course, chocolate fudge brownie. the bakery makes 11,000 pounds of brownies a day just for ben & jerry's. all the bakery's profits go into the greyston foundation, a nonprofit organization that runs programs for needy families in yonkers whether or not they work for the bakery. the foundation's funding doesn't only come from the brownies. it comes from grants, from other business ventures, from private donations. and the idea is that giving people jobs is fine, but it's not enough. people also need decent housing and daycare for their kids, or how else could they keep their jobs? and the foundation offers even more, including a computer class

for school-age kids and a clinic for people who are h.i.v. positive. angela rodriguez came to greyston's h.i.v. clinic more than four years ago after she learned that she'd been infected by her husband, who has since died of aids. >> i wanted to die. at that moment, i wanted to die, and i went into a deep depression, 'cause i didn't know how to handle the situation. >> she was terrified of the future and furious at her late husband. >> when i came in, i was a very angry person. i would dig out my husband out of the grave and kill him again. every time i got angry, i would take him out and kill him and put him back, and you know, and this anger just kept building up and up and up. >> well, she got her anger down after working with counselors at greyston. she also got her life back on track. she works at greyston now as a part-time receptionist. she's taking some college courses and hopes to become an h.i.v. counselor. has greyston given you hope

for the future? >> oh, greyston has given me more than hope for the future. greyston has given me my life back. >> another success story for the greyston foundation, jamilla shabazz and her family. she was unemployed for years, not because she didn't want to work but because she was afraid to leave her kids alone in the drug-infested neighborhood where they lived. >> where i was living, my children, one, they could not every go outside and play, because it was too dangerous. >> dangerous because... >> because of the drugs, because of the guns and the fighting constantly. >> that all changed when jamilla and her family moved into a safe, clean, low-rent apartment owned by the greyston foundation. it also came with an unimaginable luxury, daycare. >> the daycare was great. it was a great feeling to know that your children are safe. >> jamilla found a job working with kids, and her oldest son, kevin, got a scholarship from the greyston foundation

to help pay for college. >> what kind of future do you see for you and your family now? >> my daughter, my son, they're gonna do well. i'm blessed. i'm very blessed. >> the little bakery that started it all is about to become a bigger bakery which will presumably help more people. the greyston bakery is about to move into a new building designed by architect maya lin, whose past projects include the vietnam memorial in washington. >> we were going to try to get light to filter through all levels of the bakery. >> the building she designed is nothing like the cramped space the bakery is in now. she wanted a clean, well-lighted place with high ceilings and low construction costs. >> i couldn't resist getting drawn into it, one, because of what they do, two, it's sort of a very happy, very fun, very challenging design problem. >> when it's finished, greyston hopes to be able to employ nearly twice as many people and quadruple its profits. it's interesting that what

you're really into are good works, and you've discovered that running a profitable business is a better way to do good works than running a charity. >> that's right. do good and do well. it's called a double bottom line. our social mission is as important as our business mission. our people are as important as the dollars we make. >> and he hopes people will keep that in mind when they're shopping for dessert. let them eat cake, huh? >> let them eat cake. >> since our report first aired, the bakery has moved into its maya lin-designed facility and more than doubled its brownie production for ben & jerry's, the vermont ice cream company. julius walls jr. resigned as c.e.o. of the greyston bakery in 2009 to pursue a full-time church ministry. his successor, william mistretta, is the first baking industry professional to run greyston as it continues its double bottom line mission. that's this edition of 60 minutes on cnbc.