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Greedy Unions cost more jobs

Discussion in 'Off Topic Threads' started by smsnyder, Nov 16, 2012.

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  1. smsnyder

    smsnyder Well-Known Member

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    Hostess Brands Inc. says it's going out of business after striking workers across the country crippled its ability to make its Twinkies, Ding Dongs and other snacks.

    The company had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell its brands if plants hadn't resumed normal operations by a Thursday evening deadline. The deadline passed without a deal.

    The closing would
     
  2. 548

    548 Guest

    Interesting. I had no idea.
     
  3. smsnyder

    smsnyder Well-Known Member

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    Hostess said the company is unprofitable under its current cost structure, in large part because of union wages and pension costs. Rayburn said in a statement on the company website that all employees will eventually lose their jobs, "some sooner than others."

    "Unfortunately
     
  4. 548

    548 Guest

    Funny this hasn't come up before now.
     
  5. smsnyder

    smsnyder Well-Known Member

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    The closing would mean the loss of about 18,500 jobs. The company said employees at its 33 factories were sent home and operations suspended Friday and its roughly 500 bakery outlet stores will stay open for several days to sell remaining products.

    Hostess
     
  6. Jerbear

    Jerbear TS Member

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    Hostess Brands is Closed.

    On Nov. 12, Hostess Brands permanently closed three plants as a result of the work stoppage. On Nov. 14, the Company announced it would be forced to liquidate if sufficient employees did not return to work to restore normal operations by 5 p.m., EST p.m., Nov. 15. The Company determined on the night of Nov. 15 that an insufficient number of employees had returned to work to enable the restoration of normal operations.

    The BCTGM in September rejected a last, best and final offer from Hostess Brands designed to lower costs so that the Company could attract new financing and emerge from Chapter 11. Hostess Brands then received Court authority on Oct. 3 to unilaterally impose changes to the BCTGM’s collective bargaining agreements.

    Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brands’ debt.

    “We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”

    In addition to dozens of baking and distribution facilities around the country, Hostess Brands will sell its popular brands, including Hostess®, Drakes® and Dolly Madison®, which make iconic cake products such as Twinkies®, CupCakes, Ding Dongs®, Ho Ho’s®, Sno Balls® and Donettes®. Bread brands to be sold include Wonder®, Nature’s Pride ®, Merita®, Home Pride®, Butternut®, and Beefsteak®, among others.

    The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.

    Jerbear
     
  7. mbm5770

    mbm5770 Member

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    Anyone ever thought about this one...Germany is almost all Union. Wonder how there economy works....and the money is worth more than ours. Lambs to the flock. Stop trying to break our country down....if you put half the energy into an idea to build it up we would all be better off. Everyone wants to cry and moan but nobody wants to do anything or make a stand.

    Find something else to bitch about instead of trying to break down the working man for trying to keep his wages and benefits.
     
  8. BigBadBob

    BigBadBob TS Member

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    Well said, mbm5770. A lot of folks don't realize that alot of the benefits they have in their non-union job are because of the unions originally. Things like a pension and health care coverage, 8 hour work day and a safe place to work.
     
  9. fast gun

    fast gun Active Member

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    MBM5770 This isnt germany. I have no idea about their union structure.I have in the past belonged to unions Ive seen their greed get more and more. I dont know all the facts about hostess and the employees union But isnt a job better than no job? I dont fault the working man for wanting to provide for their families. We bailed out gm and what did they do bonuses to their top people Haved you seen the cost of new trucks. Is it the cost of materials the greed of unions/employees health care Please enlighten me???? I dont want to start an war here just interestes in the facts
     
  10. likes-to-shoot

    likes-to-shoot Well-Known Member

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    Two years ago they reemerged from their 2nd bankruptcy in the last 10 years....concessions have been made in all of the contract negotiations in that time frame......I'm not saying the unions don't have a part in this but they are a long way from being the only cause.

    By the way they were going to close at least three plants even if the workers agreed to every demand made of them!!
     
  11. fast gun

    fast gun Active Member

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    Yeah I know I spelled interested wrong I also know the governor of indiana got elected he tossed the state highway workers union out (uaw)None of the other unions offered to help I guess they didnt want to loose their big state contracts So much for brotherhood we got ours sorry about your luck.
     
  12. skeet_man

    skeet_man Well-Known Member

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  13. ONEDOLLARBILL

    ONEDOLLARBILL Member

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    Greedy unions Hell! I'd say fatcat bosses that do not want anyone to get ahead ! All for me to he'll with you ! Give a person a living wage and watch the economy recover !
     
  14. Joe Potosky

    Joe Potosky Well-Known Member

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    The CEO was on CNBC today.

    He said plenty of blame to go around on both sides, in past years.

    The union thought a buyer was waiting in the wings. One of the reasons they didn't cave. Guess they blew that call....

    All were to take an 8% pay cut, to include management.

    The union side was going to have to pay the same amount for health care as non-union workers.

    One of the rules that was in the new proposal to the union; was all product could be delivered in one truck. He said at present one truck for pastries and another for other products, even if going to the same store was making them non-competitive. Other job rules were also to be changed so one person could do additional jobs without breaking union rules.
     
  15. mbm5770

    mbm5770 Member

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    So so funny. Talking about apples and oranges. Bring up the GM thing and then talking about bonuses. Those people that recieved those bonuses weren't union employees. They are the top 5% of the management.

    Once again let me lay this out for you....MANAGEMENT ======NON UNION====SCAB

    The AMERICAN PUBLIC has been so brain washed by the media to think that "UNIONS" are bad. What exactly is a union.....? Look up the definition. Its a group of people all working for a common idea or goal. Kind of like a baseball team, the NRA, or even your dare I say your CHURCH. Stop believing all the BS you hear on TV and read.......form an opinion on your own. Better yet look at what Union have done for the country and the people. They are the reason for the middle class. That's right.....wow that just hit home. They did away with one guy having all the money and the rest of us working in unsafe work conditions without any benifits for .50 cents a day. Oh...holidays....from unions. Sick leave....unions. Medical insurance...unions.

    Now is anything perfect. NO. But stop with all the bashing of a Union just cause you saw a state road crew working with 5 guys standing around and one guy with the shovel. The guy with the shovel is the union guy the other 5 are the NON UNION bosses. Or the school bus driver that kept his job for whatever reason.....move on. The benefits that the unions have given the people far out way whatever you can come back with.

    Its not the UNION's that made our trade situation with China so bad..hello we hate that shit. IT's the NON UNION management and owners that made those moves. Or some retard voted into congress or the senate that has never worked a day in his life that made those laws. NOT A UNION MAN....ONCE AGAIN NOT A UNION MAN. WE WOULD NEVER SEND OUR JOBS OVERSEAS. 4% of the country is about all that is left union. Just like the NRA.....our little group fight for all the things that you take for granted. And you have the nerve to bad mouth unions. Why don't you just call your own mother and father and disrespect them for the way they raised you....would be about the same thing.

    SHAME ON YOU
     
  16. omgb

    omgb Well-Known Member

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    While I don't know what the benefit loss would have been, the wage cut was from $22/hr to $20/hr. That would have amounted to a loss of $4,080 pre-tax dollars per year. On unemployment each worker will get what, half to 3/4 of his pay for up to two years? (I may be off on the unemployment money. I haven't had the misery of collecting it since the 80s) I don't know, it seems a poor choice to me. I would have taken the cut and THEN looked for other employment.
     
  17. CalvinMD

    CalvinMD Well-Known Member

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    Maybe I'm wrong..but I know they were playing hardball on both sides but should people draw unemployment for willingly let their jobs die???
     
  18. Johnny

    Johnny Well-Known Member

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    The truth is, people don't eat that crap like they used to.
     
  19. likes-to-shoot

    likes-to-shoot Well-Known Member

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    We had one of the best mom and pop bakeries there ever was until a chain store remodeled and added their own bakery. One bakery in a town of 8,000 and still couldn't survive.

    10 years of bankruptcies, concessions from the unions and even hiring professionals to help restructure the company still can't save a company from competition from in store bakeries and companies that produce cheaper (and tastes crappy) goods.

    Unions didn't help matters but then again they aren't completely to blame either.
     
  20. 391 shooter

    391 shooter Well-Known Member

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    Calvin, the answer to that is NO!.


    You can not fix stupid.

    At our non union company of less than 200 people, we all took pay cuts and benefit cuts to stay in buisness. I mean everyone from the janitor to the CEO.We are now down to less than 100 full time folks, but, we are adapting to it.


    At one time unions were a good thing, then, they became preditors. Their idea is my way or the highway.

    Hats off to Hostess for busting this crap up, if it costs 10 cent to make and you sell it for 8 cent only a union mentality thinks that can survive.

    They will sell the Twinky and other items to other buisnesses and we will move forward.

    The ex union people will have to find out what it is like to be in the real world.

    I feel bad for the people but not for the union, they brought this on themselves.


    548 - the reason we are just hearing about this is the elections. Did you really think the press was going to cover anything that made the unions look bad before the elections?

    One last thing WTF is a living wage?
     
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