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Old 11-16-2012, 10:13 AM #1
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When striking backfires - Hostess closing for good

http://money.cnn.com/2012/11/16/news...stess-closing/

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The closing will result in Hostess' nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000 Hostess employees.
Really unfortunate.
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Old 11-16-2012, 10:18 AM #2
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Well. **** em. You know what you're getting into when you strike.
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Old 11-16-2012, 10:19 AM #3
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Yep, it is a calculated risk. This one didn't pay off.
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Old 11-16-2012, 10:21 AM #4
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You skipped the overcapacity comment.
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Old 11-16-2012, 10:24 AM #5
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Pretty sure they were striking to maintain the status quo (Hostess wanted to cut wages 8%) and not for increased wages. Gonna be a really ****ty holiday season for the workers who are now unemployed.
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Old 11-16-2012, 10:26 AM #6
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I thought hostess has been in trouble for a few years.
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Old 11-16-2012, 10:27 AM #7
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Yea, Hostess had to cut the wages 8% then raise it back in 5 years? They also had to cut pension and insurance contributions and offered a "a 25% equity stake for workers and the inclusion of two union representatives on an eight-member board of directors."

So it looks like they HAD to cut costs, and the strike actually hurt the company enough they had to abandon ship.
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Old 11-16-2012, 11:00 AM #8
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It is always amazing how unions think that companies in Chapter 11 bankruptcy are in fact "fine" and everyone ELSE should have to make concessions, but not them. Then they strike. Dur, hur!

Good luck finding a job ding dongs...

http://www.foxbusiness.com/industrie...s-sell-assets/
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Old 11-16-2012, 11:05 AM #9
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I only hear and see the bad from unions. I know their purpose, but how do you keep them from gaining too much control and ruining companies?
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Old 11-16-2012, 11:09 AM #10
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Quote:
Originally Posted by OhIoCoNtRActKilLa View Post
I only hear and see the bad from unions. I know their purpose, but how do you keep them from gaining too much control and ruining companies?
No closed shops.
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Old 11-16-2012, 11:22 AM #11
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Originally Posted by FreeEnterprise View Post
It is always amazing how unions think that companies in Chapter 11 bankruptcy are in fact "fine" and everyone ELSE should have to make concessions, but not them. Then they strike. Dur, hur!

Good luck finding a job ding dongs...
Seems like the overwhelming opinion is that Hostess has been rife with mismanagement for several years. Anyways, the Teamsters did vote to allow the concessions, but the smaller Baker union refused. Sounds like the guys at the top wanted out and are using this union debate to jump ship. Makes for a better sound bite to just blame it on "greedy unions".
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Old 11-16-2012, 11:30 AM #12
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sticky wages are sticky
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Old 11-16-2012, 11:47 AM #13
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Yeah, no way it could be the effect of the war on business being waged by the current administration...

Massive new costs of healthcare from Obamacare has serious economic affects. Increased food costs, energy costs, ect. You will see many more companies closing down as a result. You can only raise the price of your ho-ho's so much before people stop buying them. And yet, the government who has yet to pass a single budget under Obama, is still spending way more money than they bring in.

And companies KNOW that those costs will be thrown on their backs. And they simply can't afford it.

So they close.

Welcome to the new normal.
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Old 11-16-2012, 11:47 AM #14
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Quote:
Originally Posted by OhIoCoNtRActKilLa View Post
I only hear and see the bad from unions. I know their purpose, but how do you keep them from gaining too much control and ruining companies?
If you think this was their desired outcome, try thinking it through again.
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Old 11-16-2012, 11:59 AM #15
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Originally Posted by Umami View Post
If you think this was their desired outcome, try thinking it through again.
This could be part of a long-term strategy. Demonstrating their resolve will give them extra clout next time they go head-to-head with management. You'll never get anywhere with negotiations if they don't think you mean business.
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Old 11-16-2012, 12:05 PM #16
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Hostess brand name will be sold to a non union company who will get it back up and running with much lower labor costs...

Maybe even that "greedy" Bain capital. Wouldn't that be ironic... The union goons who elected Obama again, lost their jobs and Romneys company comes in and hires new non union people and the company and employees all make money.


lol.
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Old 11-16-2012, 12:09 PM #17
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Old 11-16-2012, 12:20 PM #18
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I want a twinkie...

http://www.breitbart.com/Big-Governm...o-save-twinkie

"The behavior of the Bakers' Union goes a long way to explain why, increasingly, we can't have nice stuff in this country. A significant portion of the public thinks it ought to be immune from the consequences of its decisions and choices. They want to keep having free stuff, paid for by mythical "other" people.

We're not so much facing strong economic headwinds as we are a great reckoning, reaping the consequences of decades of poor policy choices. Virtually ever economic challenge we face can be directly tied to a well-intentioned, but misguided, government policy decision. Yet, many still labor under the illusion that even more government action can fix these problems.
Like the Bakers' Union, many of us hope to avoid reality. But, such hopes have an expiration date. We've reached ours."
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Old 11-16-2012, 12:32 PM #19
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First it's a war on class and now it's a war on business. It couldn't be that Hostess mismanaged and couldn't keep the business profitable.

Weren't you the same guy who said bankruptcy for the auto industry would have been beneficial because the companies don't disappear?
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Old 11-16-2012, 12:32 PM #20
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Old 11-16-2012, 12:44 PM #21
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Coming from a California resident... I can assure you that unions are one of the most powerful organizational systems in America, and especially California.

IMO, without union control and good management within an industry, most businesses and positions would be far better off and profitable.
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