Home » Opinion » Editorials
Ding Dongs: Labor brings down Hostess
Legend has it that Twinkies can survive a nuclear holocaust. Alas, they could not survive a mindlessly obstreperous (look it up) labor union.
Like GM and Chrysler, Hostess, maker of Twinkies, Ding Dongs and other baked goods, bore an enormous burden of imprudent labor contracts. Business Insider reported in January that "rising labor costs are really killing the company's balance sheet." According to the company's bankruptcy filings, "an astonishing 97 percent of the company's unsecured claims are from employee pension funds, totaling nearly $1 billion."
As The Wall Street Journal reported on Friday, "Hostess ultimately was brought to its knees by a national strike orchestrated by its second-largest union." That would be the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM). The company's largest union, the Teamsters, agreed to major concessions after union leaders were granted access to the company's books. According to the Associated Press, the Teamsters urged the BCTGM to rethink the strike, saying that Hostess really could no longer afford the generous, previously agreed upon contract. The smaller union refused. One BCTGM worker shouted from a picket line last week, "Shut it down!"
Well, they got what they wanted. Roughly 18,500 people are suddenly jobless. The union employees who held out for nearly $1 billion in pension obligations are out both the pensions and their jobs. What stellar work.
It is long past time that Big Labor, in both the public and private sectors, stopped living in fantasy land. Lavish pensions and uncompetitive wages are relics of a bygone era. They are not coming back, at least until the rest of the world catches up to our living standards, which, to say the least, is going to take a while.
Business owners and taxpayers are not bottomless wells of cash to be drained for the benefit of workers. There is only one destination for workers and labor leaders who continue to indulge in that fantasy: unemployment.
READER COMMENTS: 9
- Kuster's abortion lies: Claims against Garcia are untrue - 29
- The Obamaconomy: Shea-Porter shows its flaw - 30
- Smith schools Hassan: Leadership in Londonderry - 0
- Where officers live: Manchester is missing the point - 4
- Leo Bernier: For Hillsborough County Commission - 0
- Insurance exchanges Sam's Club or Obama's club? - 11
- Garcia and Guinta: For a change, send them to DC - 22
- Jeanne's travel ban: She doesn't want Obama here - 14
- Making it up: Shameless state Senate attacks - 9
READER COMMENTS: 0
- Manchester pair arrested for fighting in Merrimack parking lot - 0
- Nashua man who was shot by officer sentenced to 5-10 years - 0
- Election Day hotline established to report suspected voter fraud, abuse - 2
- Nashua man charged in child sexual assault - 0
- Two accused of trafficking women in Hampton, Hooksett and Manchester - 2
- 'Fugitive of Week' captured in Hooksett - 0
- Pedestrian struck in Keene - 0
- NHIAA Cross Country: Moskowitz, Kimball primed for Meet of Champions battle - 0
- Salem coach Rich has seen playoff runs from both sidelines - 0
Manchester pub crawl leads to arrest of four
School's out for voters