Q: How do you spell stupid?
A: "Bakery Workers Union"
You've probably seen or heard the news; Hostess Brands, makers of Twinkies, Ho-Ho's, Wonderbread, and other icons of good eating has petitioned the court for permission to shut down and sell its brands to other companies. The privately held company has been bleeding money for years, filed for bankruptcy protection four years ago, but has now given up.
The company employs workers from the Teamsters and from the Bakers unions. The Teamsters recently negotiated a new contract with Hostess and, in the process, got a look at the company's books. Their leaders told the Bakers Union that Hostess wasn't posturing - their financial situation really was desperate. Despite that counsel the Bakers Union went on strike, shutting down all 33 plants across the country. Hostess warned them that if they didn't agree to a new contract with a restructured wages and benefits scale by 5 p.m. Thursday the company would shut down. The union refused, stayed on strike, and this morning the company went to court and filed papers to close.
"Further concessions are just too much for these employees to accept. We gave concessions four years ago." - Wedrick Hollingsworth, union business agent
"You have to take a stand for what you believe in. They gave us a take-it-or-leave-it deal. We can't take the financial abuse." - John Smith, plant worker
Well, John, you don't have to worry about Hostess abusing you any more. You won, they gave in.
Uhm, wait. They gave up.
John, if you've got a dictionary look up pyrrhic victory.
Hollingsworth said he was fine if Hostess closed. He said there are other bakeries out there interested in buying some of the company's bakeries. About the prospects of working for those potential new owners he said, "It's definitely got to be better than what this company is trying to implement."
Sure thing, Wedrick. Those companies will almost certainly agree that the terms of the contract that Hostess couldn't survive will serve as a starting point for what they're willing to pay. You're sure to get even more.
There are other factors that contributed to the Hostess problems including a move to healthier eating. Hey, gravel has more nutritional value than a Twinkie. But because the second largest union at Hostess (Teamsters is the largest) engaged in terminal stupidity 18,000 workers are losing their jobs.
And some people wonder why unions have lost influence and respect.
1 comment:
The blame falls more on the Teamsters even though the news would indicate the contrary. The Teamsters contract required Hostess to send another, seperate unionized employee in a seperate vehicle to unload the product and place stock them on the shelves inside the store. I'm told there were also rules in place that forbid Hostes from selling to other distributors directly (for example delivering in bulk to WalMart warehouses and then letting WalMart assume the burden of distribution to reduce price.) Evidently Teamster work rules also prohibited Hostess from selling to dollar stores and certain non-unionized grocery chains. The Bakers Union evidently already had a below market contract in place and is willing to wait for a post-bankruptcy buyout.
Mike
Post a Comment