Four days ago I reported that a strike by the Bakery, Confectionery, Tobacco Workers and Grain Miller’s International Union had caused Hostess to shut down three of their facilities. The move of shutting down the three facilities resulted in 627 workers losing their jobs. Hostess employed a total of 18,500 people.
Hostess was going through their second bankruptcy in seven years and was trying to negotiate with the union in order to survive. However the union was unwilling to negotiate in any manner that would help the company be able to afford to operate.
During the bankruptcy proceedings hostess warned the union and union workers that a strike would most likely lead to the closing of some or all of their facilities. Evidently the union didn’t believe the company would turn to those measures and called their bluff. Yet after the company closed three of its facilities the union still insisted on demanding their way.
Now the company, headquartered in Irving, Texas, has announced that they are closing all of their facilities and going out of business. Instead of just 627 workers losing their jobs the union has now caused 18,500 workers to lose their jobs.
Hostess Brands founded in 1930 has made Twinkies, Wonder Bread, Ding Dongs, Ho Ho’s and Dolly Madison. Much to the joy of junk food czar Michelle Obama, these bakery items will no longer grace the shelves of American stores and children’s lunchboxes.
I’ve said it before and I’ll say it again, I believe unions do more harm than good in America today. They drive up costs to the point where companies can no longer make a profit and stay in business. In a struggling economy, which will only get worse, many companies cannot afford to operate with union employees. Like Hostess they too may find themselves having to close their doors and lay off hundreds or thousands of workers because of union demands.
Interestingly, these very same unions supported Barack Obama and his economic policies, which have so hurt the companies where their members are employed. I know the workers will blame Hostess when in reality it was their own union that led them to being unemployed. If I were one of them I would demand the union pay my wages while I searched for a new job.