Published: Monday, Nov. 26 2012 6:50 a.m. MST
How about some evidence that management was at fault. If all of a
company's resources are being used to pay its employees and other expenses,
there is nothing left for R&D, marketing or other company-saving efforts.
I liked the Wall Street Journal article on the Hostess bankruptcy - google it.
That article explained that the Baker's Union was tired of making
concessions, when the Teamsters Union had not made very many concessions. So
the Baker's Union decided enough was enough. The author of this article
referred to the union rules and silly practices written into the labor contract
(top paragraph of second webpage). Well, guess what the Teamsters Union
wasn't willing to change? Yep, the silly labor practices, that assured
that Hostess' distribution costs were way too high. When Hostess is
spending over $100 million (see WSJ article) on distribution costs that
shouldn't be there, I'll bet that it's hard to spend much on
R&D or marketing. Just saying... The benefit of bankruptcy is that someone
will buy the brand, and the bakers will likely have job opportunities from
whoever buys Hostess out of bankruptcy. And the labor contracts will be reset.
Unfortunately, the non-labor union distribution companies / employees are really
hurt in the interim.
Clark is right. Where was the leadership at Hostess? Blaming the union is just
childish. The reality is that people have been becoming much more health
conscious for decades. Other "junk food" producers responded with
low-calorie, low-carb, increased fiber, gluten-free, sugar-free, and other more
healthy products.Not Hostess.Their Twinkies are infamous
for being so full of calories, carbs, sugar, and undisclosed preservatives, it
is laughable that they are even on store shelves in this more health-conscious
age!Hostess leadership failed to innovate, failed to lead, and
failed to take responsibility as leaders by trying to lie to the public and to
themselves and blame the union.Hostess leadership has no one to
blame but themselves.
Apparently the Hostess 18,000 employees and the communities which will be hurt
by their employment termination are not as important to the administration as
the autoworkers were some 4 years ago. What about their pensions,
associated small businesses and the lost manufacuring infrastructure in this
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