Hostess Brands — the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread — announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.
And what is this horrid new contract that the union simply cannot abide?
The new contract cut salaries across the company by 8% in the first year of the five-year agreement. Salaries were then scheduled to bump up 3% in the next three years and 1% in the final year.
Ok, yeah, making 92% of what you made yesterday would well and truly suck, there is no question about that, but it sure as hell beats making 0% of what you made yesterday, which is what the 5000 union employees and 13,500 other workers of Hostess will probably be doing in the near future.
When it comes to those 5k, screw them and let them freeze in the dark, and doubly so for shafting their fellow employees.
This is a mentality I do not think I will ever adequately understand, much less relate with. I understand that accepting a cut in income sucks, and I understand just how narrow of margins families and people are working on these days. However, it would seem to me that scrimping here and there to make by on what money you are able to bring in after the cuts would be infinitely superior to bringing in no money because you and your crony idiots helped shut down the company that employed you. And what, exactly, do those bakers think they will do now? Have they seen the unemployment numbers (the real ones)? Do they think they are just going to just roll right into another job? Of course, with their union backing them up, they might be able to… until they help drive that company into the ground, too.
It may be a loose analogy, but this is rather like burning down your apartment complex rather than pay a slight increase in rent.
I will not go so far as to claim that the union morons are exclusively responsible for Hostess closing their doors – that company’s repeated bankruptcy proceedings clearly indicates something else (or multiple something elses) was afoot and needed to be addressed – but having ~27% of your workforce refuse to show up would be enough to give any corporation pause.
In any case, all you Tallahassees out there had better start stocking up – Amazon is already running low, prices are going up, and there is no guarantee anyone will buy up the "Twinkie" name once Hostess goes to auction (though I would be very surprised if someone did not).