UNION STUPIDITY (AND OTHER REDUNDANCIES)

I like a Twinkie every once and awhile (did you know that they now have Twinkies with chocolate creme filling). But I'd be happy to forego the future opportunity for the sponge cake treat if Hostess sticks by its warning that it will begin to liquidate the company if striking union members don't return to work by the evening of November 15.

The company negotiated a new contract with the Teamsters, but the Grain Millers union launched a strike last week to protest a labor deal implemented during its bankcruptcy which contained cuts in wages and benefits. The strike (which includes the facility in Northwood, Ohio) has already resulted in the closing of three Hostess factories.

The liquidation of Hostess would result in the loss of 18,000 jobs.

I'm hoping that the company stands by its position to liquidate. Unskilled workers need to get a clue that they're a dime a dozen and in this Obama-tainted economy (their union dues helped to pay for Obama Part II) they should feel lucky to have a job.

Business executives have the education, skills, and experience to find other jobs. The laborers are the ones who are striking their way right out of an income.

Here is a link to an article giving further details about the strike:

http://seattletimes.com/html/localnews/2019669873_apushostessbrandsstrik...

No votes yet

in what's left of America, are technically in default of their members assets !

NYC's largest union-American Federation of Teachers union took in $125.5 MILLION of revenue and spent $137.3 MILLION ?!

Asset management apparently learned from Bernie Madoff-D , Wall Street money bundler for Obammy.

Detroit's horrid teachers union is $1.4 million in the hole.

Time for another union bailout from Obozo- let's call it the "Fiscal Restoration Act of Criminal Thieving,Lying Union Bureaucrat Scum, Who Waste Members Hard Earned Dues On Golf Courses,Vegas Vacations,6 Figure Incomes for Job Killing, etc."

Sounds perfect, doesn't it ?

I'm no fan of unions, but I understand the workers in this one.

http://www.teamster.org/content/dow-jones-uncovers-alleged-looting-hoste...

When the top levels are looting the company, we shouldn't be surprised when the rank and file try to do the same.

They are facing a company run by crooks. Crook-run companies invite other problems, like unionization and strikes. Bad companies deserve unions, really.

The public's role in this one, is to stand back and watch them destroy each other.

What's interesting is that the Teamsters have already approved a contract with Hostess. It's another union that might force it to go out-of-business.

Management holds all of the cards here--the union has to decide if they want to keep jobs at reduced wages and benefits or eliminate jobs altogether.

I find it telling that wolfman refers to Hostess as "crooks" while excusing the Teamsters.

In 2006-7 the Teamsters lost control over the UPS pension all the while telling their UPS members that the company was involved in a money grab that would lower their pensions.

What actually was happening was Teamsters were using the funds paid by UPS members to inflate the pension fund of which many more members from companies that pay significantly less were drawing from. When UPS finally won control over the pension nothing that the Teamsters said would happen happened. The pension was not replaced with a 401(k) [they already offered one to their employees], their pension checks went up and not down, the company has not locked out any of their employees of the pension. In turn the company paid 6 billion to make the deal happen.

Now compare the services UPS delivers, they're comparable with the non-union FedEx, but more interestingly compare it to the USPS and you have a great case study against unionization. The companies that are removing union influence or have none at all are able to provide better services for their customers and employees than that of a unionized government burearucracy that requires continued taxpayer bailouts.

MikeyA

"The liquidation of Hostess would result in the loss of 18,000 jobs."

Uh, no. It's not like the company property, equipment and supplies would just be bulldozed and sent to a landfill. There would be some form of sale or auction, then a re-opening under a different ownership, corporate logo, etc. This has happened more than once at that "General Mills" plant on Laskey. The company sign in front has changed so much, that they went to using cheaper materials for it.

We can't even say that automation will cost more jobs from that number, either. The big baking industries have already largely automated. What remains is necessary labor. There will be a loss of the union margin, sure; it's anyone's guess how many employees were kept on purely because the union made it impossible to lay them off from daily operations. But it won't be 100%. It won't be 50%. It should be at least 10%, however.

GuestZero is correct. "There would be some form of sale or auction, then a re-opening under a different ownership, corporate logo, etc"

They will probably sell the brand name and equipment seperately to a company based in a Right To Work state and move everything that can be moved. Then sell the empty buildings in Union Owned states to whoever is stupid enough to buy them.

Or possibly move all the equipment into Mexico.

Count on the newly unemployed Union hacks to go running to Barry Sotero the empty suit Golfer-In-Chief, but thanks to Bill Clinton signing NAFTA, there is nothing this excuse for a "president" can do.

Don't blame me,
I didn't vote for a
socialist.

I hadn't thought about Mexico, but that sounds like a really good bet. Cheap labor and raw materials will keep the cost down, and no matter where you open transportation is going to be a major cost. Open a plant in Mexico and the notorious Twinkie will cost two cents to make, three cents to package and five dollars to ship. Obama and the oil companies, you see.

But Obama won't last forever and I don't see Biden winner much of anything except the door prize at the inaugural ball, so if shipping cost falls the Mexico idea looks better all the time.

The rolling stock will be auctioned off, and the buildings sold at a fire sale price. And that will be that.

Mad Jack
Mad Jack's Shack

They're closing. 18,000 people will be laid off. Teamsters is blaming the Baker's union. Trumka is blaming Bain Capital.... who had no part in the deal.

Unions. They killed the twinkie.

MikeyA

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