Hostess reopens for business - minus union workers
Posted: Fri, 26 Apr 2013 19:01:31
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>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>Kreutz wrote:Management blamed the unions, unions blamed the management.
The truth usually lies somewhere in the middle when two parties are pointing the finger at each other.
From what I understand poor decisions, musical chair leadership, and debt (sales were way down since people are more health conscious) taken on by management was exacerbated by wage increases from the unions leading to the collapse.
In any event, I wouldn't eat anything they sold if you paid me. A food items ingredient list should not take as long to read as a poignant Russian novel.
>>>>>>>>>>>>>>>>>>>>>>>>>SpanishInquisition wrote:Great timing. I just enjoyed my last stockpiled twinkie last week.
No friends, twinkies do not last forever. I did enjoy most of that box ( chocolate filled for the curious), but had to discard the remainder this week as sime tiny mild spots had appeared on those delicious if not nutricious golden cakes.
Welcome back, Twinkie the Kid!
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I will not go that far, but....Nat wrote:To hell with unions - they have outlived their usefulness in the USA.
So the short-sighted greed of management is OK but the short-sighted greed of the union is not?dorminWS wrote:Really? Let me get this straight.......
Prior poor decisions, musical chair leadership, and debt in the face of a drastic decline in sales due to heightened health consciousness had put the company on the brink of insolvency, but it isn't the labor unions' fault they went under; all THEY did was go on strike and completely eliminate the company's ability to generate income.
Yeah, sure...... THAT makes all kind of sense. ..... So if you were walking along the edge of the precipice at the Grand Canyon while legally drunk and I pushed you over the edge it wouldn't be my fault at all that you fell since you were already dizzy.
Exactly. There's a lot of blame to go around for derailing this train.Kreutz wrote:So the short-sighted greed of management is OK but the short-sighted greed of the union is not?dorminWS wrote:Really? Let me get this straight.......
Prior poor decisions, musical chair leadership, and debt in the face of a drastic decline in sales due to heightened health consciousness had put the company on the brink of insolvency, but it isn't the labor unions' fault they went under; all THEY did was go on strike and completely eliminate the company's ability to generate income.
Yeah, sure...... THAT makes all kind of sense. ..... So if you were walking along the edge of the precipice at the Grand Canyon while legally drunk and I pushed you over the edge it wouldn't be my fault at all that you fell since you were already dizzy.
Like I said this was the result of two parties, not just one.

Only the very last straw counts?dorminWS wrote:All the same, guys......... the straw that broke the camel's back was piled on by the union.
Who knows? I doubt the musical chair leadership and lavish executive compensation (for such a debt ridden company) were even remotely the unions fault.And I'd be surprised if a lot of the prior poor decisions weren't union-driven, too.
Just curious why you minimize managements contributions to the downfall (as you are here) while maximizing the unions. And unless I'm mistaken we're both outsiders here unless one of us had a stake in Hostess.As far as outsiders carping aboiut the poor management that had gone before, it seems to me that is only marginally relevant.
Hostess (was) privately held.It seems to me that if the company's inefficiency was acceptable to the stockholders, then it is nobody else's business.
In an ideal world it sure would be.Part of private property rights is the right to do with it as you please.
It's called the "but-for" test. But for the action of the union, Hostess would have continued to operate until confronted with some other crisis. To use my example, try pushing a drunk off a cliff and see if you get any breaks because he was drunk.Kreutz wrote:Only the very last straw counts?dorminWS wrote:All the same, guys......... the straw that broke the camel's back was piled on by the union.
And I'd be surprised if a lot of the prior poor decisions weren't union-driven, too.
As you point out below, neither of us knows the details. but as you acknowledge below, in a perfect world, it would be solely a matter between management and the stockholders.Kreutz wrote:
Who knows? I doubt the musical chair leadership and lavish executive compensation (for such a debt ridden company) were even remotely the unions fault.
As far as outsiders carping aboiut the poor management that had gone before, it seems to me that is only marginally relevant.
I'm not minimizing it. I'm just differentiating it. The difference is that whatever management did, it did with the acquiescence of ownership; and they all had skin in the game. The union, on the other hand, was an outside 3rd party with no investment, almost nothing to lose and every incentive to create ill will and discord so they could justify their dues by then mediating said discord. In fact, if any other supplier of any other necessary item except labor conspired with its fellow suppliers to withhold their supplies in concert except at a minimum price, the government could and probably would prosecute, fine and perhaps even incarcerate them under the antitrust laws. As a matter of New Deal policy, our government carved out a huge exception for labor, and it has been abused to (and in this case clearly beyond) the breaking point.Kreutz wrote:
Just curious why you minimize managements contributions to the downfall (as you are here) while maximizing the unions. And unless I'm mistaken we're both outsiders here unless one of us had a stake in Hostess.
It seems to me that if the company's inefficiency was acceptable to the stockholders, then it is nobody else's business.
So what? privately held corporations still have stockholders. The only difference is that their stock is held by a small group. And that small group also usually but not always also manages the company. So the point you make buttresses my position - not yours.Kreutz wrote:
Hostess (was) privately held.
Part of private property rights is the right to do with it as you please.
Isn't it nice that we can sometimes agree on something?Kreutz wrote:
In an ideal world it sure would be.