Change it to "Union Thuggery Causes Snack Food Maker to Close".
That title will fit.
If you read anything on the business history of Hostess they repeatedly shot themselves in the foot. They have filed for reorganization under bankruptcy laws before, the last time in 2011. They attempted to destroy their famous Wonder Bread line by closing regional bakeries, adding preservatives that changes the taste and texture of the bread costing them customers. They failed to join the market with a whole wheat or multi-grain bread until way late in the change over to that type of bread. They hired incompetent managers that despite previous wage and benefit concessions from employees still couldn't keep the company viable, even after failing to pay $160 million owed to the pension fund, in direct violation of the Union contract. Yes the strike was the final hole in the Hostess boat that sank the company, but a little history shows that previous holes had been plugged with chewing gum.
Do some research before spouting off, you won't look so uninformed or just plain ignorant.
Oh yeah, I forgot to mention the pay raises for upper management at the time the company was saying it was broke...
As the company was asking for more givebacks from workers, a group of creditors said in court papers that the company “may have manipulated its executives’ salaries higher in the months leading up to its Chapter 11 filing,” again according to the WSJ. According to the creditors’ court filing, the following Hostess executives saw substantial salary increases in July 2011:
■Brian Driscoll, CEO, from around $750,000 to $2,550,000
■Gary Wandscheider, EVP, $500,000 to $900,000
■John Stewart, EVP, $400,000 to $700,000
■David Loeser, EVP, $375,000 to $656,256
■Kent Magill, EVP, $375,000 to $656,256
■Richard Seban, EVP, $375,00o to $656,256
■John Akeson, SVP, $300,000 to $480,000
■Steven Birgfeld, SVP, $240,000 to $360,000
■Martha Ross, SVP, $240,000 to $360,000
■Rob Kissick, SVP, $182,000 t0 $273,008
I don't think GT is a troll, and I don't think he's uninformed either. I think he has just been "informed" for too long by Fox, Rush, Hannity, Fox, and Fox. He thinks he's welcome into their club when they just need his soul for traction on their way to more and more for them.
GT buddy, switch that radio station to some music, I hear that FM thing is really starting to catch on!
I've got a riddle for ya, GT. What union killed Kodak?
I realize that my views on this particular subject won't align with most of the guys in this forum or in the fire service in general.
I got over that a long time ago.
The segment discussed why Kodak failed, and the reason was simple. They failed to look forward and adopt new technologies and instead kept doing what they had always been doing, and by the time they realized that there was no longer a need for thier product because of the new technologies, it was too late to right the ship.
As far as this subject, yes, this is another example of a union failing to regognize the need to accept reduce wages and benefits and instead holding out, or should I say, demanding, what simply wasn't there. The company made a rational decision to shut down because, in part, of what the union wanted.
The fact that through a failed experiment to add preservatives to Wonder Bread, and cut the number of regional bakeries, that changed the texture and taste and almost destroyed that customer base cost them millions, and their failure to early on add a whole wheat or whole grain bread while the rest of the market was capitalizing on the switch to healthier bread spelled the beginning of the end of Hostess. The healthier foods craze totally missed by the Hostess snack foods line was another nail in the coffin. NONE OF THOSE ISSUES CAN BE BLAMED ON THE BAKER"S UNION. Was the strike the final nail? Sort of, it was coming anyways, all this did was hasten the end. The fact is, this made the Union an excellent scape goat for the ridiculously uninformed.
This crap will continue as long as there are CEO's with no morals, and a public gullible enough to believe that the unions and not their greed causes corporations to fail. It's the same as the mafia when they busted out a small business, they come in, squander all the poor guys credit, liquidate his assets, then split leaving him to file for bankruptcy.
Hmm...Bain Capital much?
In general, unions are the only thing that stands between what we have now and slave labor in places like china and others. The problem is we have a up hill battle, they can make things so cheap.
People need to get over these blinders like gay marrage, black, white, unions, ect. Unless you are rich it might not be a good idea to pull the R handle "just because".
I had a PT not too long ago that was complaining about democrats when he has food stamps, medicaid, and sec 8 housing.
Things that make you wonder
Of couse if my back doesn't stop giving me problems i will be on these as well
The answer for Kodak is none, Kodak's management fooled its workers into believing they'd be taken care of (I believe George Eastman was true to this and some of his predecessors, but in recent history not a chance) without unions or collective bargaining. Now workers and retirees are seeing massive cuts in pay and benefits. The point is, Kodak and Hostess are very similar in why they failed. It has little to nothing to do with unions, it has to do with incompetence at the top. The difference is, when Hostess has problems they blame the union. Kodak isn't unionized, so no union to blame. Instead the talking heads talk mostly about how the world changed around Kodak, some place blame on management, but few of been as harsh on management as they would have been on the union. The actions of Kodak's CEO Antonio Perez show why unions are so important, as Kodak is limping along days from death and cutting workers and benefits, Perez has been ensuring he gets paid, other managers get bonuses (apparently those that ran the company into the ground are needed to right the ship, so they get retention bonuses).
The fact is pay for cooperate mangers has balloned over the past 40 years while the pay for workers has barely kept with inflation. In fact, economists are calling the last 10 years the "lost decade" because worker pay hasn't kept up with inflation. Its as if we're making the same or less than we did 10 years ago. What people fail to realize is until worker pay goes up we'll never get out of this recession, people need to have money to buy goods and services. Without money, their is no buyer, without a buyer, there's no need for that product or service, without a need for a product/service there's no need for the workers who make or provide that product.
P.S. the ironic thing is Kodak researchers invented the digital camera.