By Eric Zanzucchi (@ericzanzucchi)
Hostess is no more. They are now liquidating their assets because they can no longer finance their operation. There is apparently a ‘bakers union’ that a lot of Hostess employees were a part of and when management told them they had to cut wages or close down the union called their bluff. The thing is it wasn’t a bluff and now 18,500 bakers are out of a job.
This chain of events demonstrates the great flaw of unions. Once a union is created it is solely consumed with the health of the union and not with any individual or contingent of members. Had the bakers accepted the pay and benefit reductions they would still have their jobs today. However, had they accepted the downgrade in pay it would have made the union weaker. After all, what do those bakers need a union for if they are being paid market value compared to bakers not in the union, but still being forced to pay union dues.
So the union told the company to fuck off and shut down if they have to. They did and those 18,500 bakers are out of work, but those who still work in the union are well taken care of because they are artificially overpaid and thus the union is stronger. Don’t get me wrong unions are great when they act as Robin Hood, but in this case everyone got fucked by the union.
P.S. Hostess is selling off their products to other companies so Twinkies and the like should be available soon under another label.