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Hostess
- Thread starter Se7en
- Start date
... and the bakers union that thought they could DEMAND more benefits,*Don`t do it* instead of barganing with management.
how much is 100% of nothing?
Some other company will buy the rights to the name and a couple of the factories and open them back up as open shops.
The union that wouldn't blink will be offered their old jobs back at a lower wage with less benefits.
The CEO and other directors that would not blink will deploy their golden parachutes and whistle all the way to the bank.
The union that wouldn't blink will be offered their old jobs back at a lower wage with less benefits.
The CEO and other directors that would not blink will deploy their golden parachutes and whistle all the way to the bank.
Out here in kal e for nia there rumors of Mexican factory's buying out hostess (yukk)
Hooray for Hostess because they told the truth and were not bluffing. This was a struggling company that made bread and cupcakes not electronics or automobiles. Maybe the next union that wants to fill 18,500 peoples heads with false hopes of getting another $3000 each in the middle of a failing global economy will think twice. I'll bet many of those workers regret following the one union idiot who thought he could force more money out of a loaf of bread. It's the equivalent of legal theft with punishment if you don't submit. Give us all another $3000 or we will shut you down with little warning.
Now I can't buy my Wonder bread or Ring Dings, nearly 20,000 are unemployed right before the holidays, a 75 year old company is wiped off the map in a week, and some greedy union needs to find a bunch of new members to line their pockets while offering as little in return to both sides of the table as possible. Call it wrong if you want but I think just about every one involved got just about what they deserved except those who felt forced to follow the union. Hostess warned every one they did not have the resources to whether an extended strike so why did they expect a different result?
The reality is no one else can step in, buy this company, keep these employees, and turn a profit today. The plants are antiquated, the employee benefits and retirement packages had grown out of control while profits dwindled. The only way to makes money with this today is to already have a competing business, take the few most profitable products after buying the rights and make them at your facility. The only ones who really made out were the owners and those on top who no longer have to deal with any of this BS and still get paid off for not walking of the job when ever they didn't get what they wanted.
Now I can't buy my Wonder bread or Ring Dings, nearly 20,000 are unemployed right before the holidays, a 75 year old company is wiped off the map in a week, and some greedy union needs to find a bunch of new members to line their pockets while offering as little in return to both sides of the table as possible. Call it wrong if you want but I think just about every one involved got just about what they deserved except those who felt forced to follow the union. Hostess warned every one they did not have the resources to whether an extended strike so why did they expect a different result?
The reality is no one else can step in, buy this company, keep these employees, and turn a profit today. The plants are antiquated, the employee benefits and retirement packages had grown out of control while profits dwindled. The only way to makes money with this today is to already have a competing business, take the few most profitable products after buying the rights and make them at your facility. The only ones who really made out were the owners and those on top who no longer have to deal with any of this BS and still get paid off for not walking of the job when ever they didn't get what they wanted.
Killing the goose that lays the golden egg is one of those old fairy tales for children that has a heavy message that a lot of adults should listen to. The labor unions that have driven the makers of Twinkies into bankruptcy, potentially destroying 18,500 jobs, could have learned a lot from that old children's fairy tale. Many people think of labor unions as organizations to benefit workers and think of employers who are opposed to unions as just people who don't want to pay their employees more money. But some employers have made it a point to pay their employees more than the union wages, just to keep them from joining a union. Why would they do that, if it is just a question of not wanting to pay union wages? The Twinkies bankruptcy is a classic example of costs created by labor unions that are not confined to paychecks. The work rules imposed in union contracts required the company that makes Twinkies, which also makes Wonder Bread, to deliver these two products to stores in separate trucks. Moreover, truck drivers were not allowed to load either of these products into their trucks. And the people who did load Twinkies into trucks were not allowed to load Wonder Bread, and vice versa. All of this was obviously intended to create more jobs for the unions' members. But the needless additional costs that these make-work rules created ended up driving the company into bankruptcy, which can cost 18,500 jobs. The union is killing the goose that laid the golden egg. Not only are there reasons for employers to pay their workers enough to keep them from joining unions, there are reasons why workers in the private sector have increasingly voted against joining unions. They have seen unions driving jobs away to non-union competitors at home or driving them overseas, whether with costly work rules or in other ways. The legendary labor leader John L. Lewis called so many strikes in the coal mines that many people switched to using oil instead, because they couldn't depend on coal deliveries. There is no question that Lewis' United Mine Workers Union raised the pay and other benefits for coal miners. But the higher costs of producing coal not only led many consumers to switch to oil, these costs also led coal companies to substitute machinery for labor, reducing the number of miners. By the 1960s, many coal-mining towns were almost ghost towns. But few people connected the dots back to the glory years of John L. Lewis. It was much the same story in the automobile industry and the steel industry, where large pensions and costly work rules drove up the prices of finished products and drove down the number of jobs. There is a reason why there was a major decline in the proportion of private-sector employees who joined unions. It was not just the number of union workers who ended up losing their jobs. Other workers saw the handwriting on the wall and refused to join unions. There also is a reason labor unions are flourishing among people who work for government. No matter how much these public-sector unions drive up costs, government agencies do not go out of business. They simply go back to the taxpayers for more money. Consumers in the private sector have the option of buying products and services from competing, non-union companies. But government agencies are monopolies. You cannot get your Social Security checks from anywhere except the Social Security Administration or your driver's license from anywhere but the DMV. Is it surprising that government employees have seen their pay go up, even during the downturn, and their pensions rise to levels undreamed of in the private sector? None of this will kill the goose that lays the golden egg, so long as there are both current taxpayers and future taxpayers to pay off debts passed on to them. Thomas Sowell is a senior fellow at Stanford University's Hoover Institution.