According to a Reuters article; striking Hostess bakers would rather lose their jobs than take pay-cuts. It looks like they got their wish as Hostess has been given the go ahead to begin liquidating its assets. Around 18,000 workers will be affected by the Bakers Union’s decision not to settle the strike.The Bakers Union has offered up a holiday themed Bronx Cheer to the Hostess Company as well as to its fellow workers instead of a Happy Thanksgiving. Merry Christmas and Happy New Year. Stupid is as Stupid does. 18,000 workers will all soon be out looking for work in an already harsh economy. The Hostess Co. will sell off its profitable assets. Some product lines of the company will disappear into the annals of history. Some product lines will be absorbed by other companies. Perhaps some of the products will continue to be manufactured here in the US; those that do will probably be produced by less expensive manufacturing methods or less costly labor forces. Best case scenario for the workers is they get rehired by the new owners losing the gravy train pension setup they had with the Hostess Co. But in this weakened economy, most of the displaced workers will probably be forced to take lesser jobs in labor fields they are unfamiliar with at lower starting pay and benefits than they are used to living from. It was a lose-lose event for everybody involved.
- Hostess Closing Doesn’t Spell End For Bakers Union (forbes.com)
- FAIL: Hostess And Bakers Union Talks Break Down In Mediation (businessinsider.com)