-By Warner Todd Huston
Today’s page from the annals of cutting one’s nose off to spite one’s face gives us the case of the Twinkies Finkies where union strikers are set to permanently destroy their own jobs by forcing the Hostess snack cake company to go bankrupt because of union demands.
The Hostess company has been under sever pressure due to this destroyed Obama economy and just when it didn’t think things could get worse, the unions have decided to go on strike demanding that the company get blood from this dead economic stone.
The company, already trying to reorganize from two bankruptcies, announced that it would be forced to cut wages and benefits of its workers and offered a new contract based on these realities. The unions rejected the offer and promptly went on strike.
Hostess CEO Grey Rayburn told the media that his company simply could not withstand a work stoppage.
“We’ve been very straight forward that the business can’t withstand the significant work stoppage,” he said. “If this strike continues, there is certainly a risk that Hostess will go out of business.”
Reuters reports that the company will seek liquidation unless workers return to work.
Despite the well-known bankruptcy problems in which Hostess Brands has been mired, some unions have rejected any offer of working with the company to save the business. A few other smaller unions did accept the contract offered by the faltering company, but the biggest union, the Baker’s Union, has steadfastly refused any concessions. Most unions are honoring that Baker’s strike and refusing to cross picket lines.
So, unless the union bends, it looks like Twinkies, Wonder Bread, and a host of other Hostess products will be a thing of the past while some 18,500 Hostess workers lose their jobs forever.
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