2 votes

Union Kills Jobs

Hostess is in bankruptcy. They are trying to reorganize to shed debt and expenses so that they can continue operations with a chance of being profitable.

So, they vendors and creditors are going to take a $2 billion loss. They will go along with it because the alternative is to lose everything, along with future business/loans.

But the baker's union, well they are so much smarter. Hostess management says they have to cut labor expenses. Rather than layoffs, they want an 8% pay cut, a temporary freeze on adding to pension funds, and some changes in work rules. To help compensate for this, they are offering the union employees a 25% equity stake in the company, a $100 million note that will be paid if and when the company returns to profitability, and 2 seats on the Board of Diretors (so employees can help make decisions and be on the inside of information flow).

But ... the union members voted 92% against.

The company said they will have to shut down any striking bakeries due to inability to pay overhead.

The union members of 3 plants went on strike.

And the company has shut them down.

So, the union has killed 627 jobs.

Typical.

The Hostess bankruptcy plan:
http://money.cnn.com/2012/10/11/news/companies/twinkies-host...

The strike and shutdown response:
http://www.dallasnews.com/business/headlines/20121112-hostes...

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Unions are another form of

Unions are another form of progressive protectionist economy that pays no respect to market forces or supply and demand. Small form of corporate welfare. If the unions don't like it, they should form their own bakery.

Southern Agrarian