Quote:
Originally Posted by Shimpy
According to the news the reason Hostess is going out of business is because the union is on strike and refuses to go back to work. In todays economy and jobless situation it is unbelievable to me that someone would be on strike when they should be thanking their lucky stars that they even have a job. Now those employees who could have been working won't be and I have no sympathy for them. I do have symphony for those that belong to the union and disagree with striking but wouldn't dare say so or could be physically harmed.
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That is far from the truth:
"In order to “save” the firm, the operators of the company turned to the
unions, which had already surrendered huge concessions just a few years back to turn the company around, and demanded an across the board
slash, an additional 31%, along with eliminating the retirement and benefits entirely. It was a bridge too far. The union went on strike, and now the company has declared it will be liquidated.
in the end the union members would have lost more if they had capitulated to the vulture capitalists demands.
By this move, they can hope to salvage the retirement plan, while if they’d given in they would have lost it all. $2 billion is a lot of money to just “give away” in negotiations. Of course the unions were expected to surrender despite the fact that the management company was asking the bankruptcy court to
give their outgoing CEO up to $5.5 million. All of this was in addition to the 80% raises the executives were being treated to"