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UPS Union Issues
Don't Support Union Busting Hostess Twinkees !
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<blockquote data-quote="Bagels" data-source="post: 1168653" data-attributes="member: 43436"><p>Hostess was competing in a declining market with aging facilities and high labor & distribution costs.</p><p></p><p>Does management share a large blame of Hostess's problems? Yes. Does our society reward executive management teams for failure? Yes. Did Hostess's new "owners" purchase the company with the intentions of profiting off its liquidation? Perhaps. </p><p></p><p>But what mattered is that the company's cash flow had become a concern, and the company simply couldn't raise its prices to cover it -- one of Hostess's biggest problems is that the recession had accelerated people's transition toward cheaper, substitute products. Without question, if Hostess were to survive, it needed to lower its labor costs. It reached a deal with the IBT, but its other unions wouldn't budge. It's been argued that they believe the company was headed for liquidation, anyway, and they were attempting to protect the industry wage but I don't buy that considering that only a small portion of the industry remains unionized (covering a small geographic region). </p><p></p><p>The workers that voted against the concessions did so because they believed they could earn similar wages elsewhere should the company liquidate (just as many UPS drivers believe they could earn $32+/hour w/no-cost benefits elsewhere). Instead, today they're competing for their old jobs at the many companies that purchased pieces of Hostess. And most of these jobs will pay barely above minimum wage, with no benefits offered.</p></blockquote><p></p>
[QUOTE="Bagels, post: 1168653, member: 43436"] Hostess was competing in a declining market with aging facilities and high labor & distribution costs. Does management share a large blame of Hostess's problems? Yes. Does our society reward executive management teams for failure? Yes. Did Hostess's new "owners" purchase the company with the intentions of profiting off its liquidation? Perhaps. But what mattered is that the company's cash flow had become a concern, and the company simply couldn't raise its prices to cover it -- one of Hostess's biggest problems is that the recession had accelerated people's transition toward cheaper, substitute products. Without question, if Hostess were to survive, it needed to lower its labor costs. It reached a deal with the IBT, but its other unions wouldn't budge. It's been argued that they believe the company was headed for liquidation, anyway, and they were attempting to protect the industry wage but I don't buy that considering that only a small portion of the industry remains unionized (covering a small geographic region). The workers that voted against the concessions did so because they believed they could earn similar wages elsewhere should the company liquidate (just as many UPS drivers believe they could earn $32+/hour w/no-cost benefits elsewhere). Instead, today they're competing for their old jobs at the many companies that purchased pieces of Hostess. And most of these jobs will pay barely above minimum wage, with no benefits offered. [/QUOTE]
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