Pay Cuts or Liquidation – The Union Votes Kill Hostess Brand
Fiscal Cliff Warning – you see the democratic logic? We want ours, it doesn’t matter what happens to the rest of you. One problem, you’re bankrupting the rest of us and when Atlas Shrugs, we all lose. Today, Hostess shrugged. Unable to gain the necessary concessions from the union the brand will go under. 70% of the workers has agreed but 30% held out for ‘theirs’. No, everyone is out of work. Taken down by the Bakers Union. This is the same negotiating thesis is being deployed by the mental midgets in the White House right now as well.
The company also announced that it would immediately lay-off its 18,500 workers. The Bakers’ Union only represented around 30% of the company’s total workforce. All other workers had already accepted wage concessions and changes to the company’s work-rules. 70% of the workforce accepted pay cuts of around 4% over 5 years. Given the general state of the economy, that seems very modest and would have allowed the company to continue operating. But, the Bakers’ Union instead went on strike, without even offering counter-demands. As a result, they have forced 100% pay cuts on all employees.