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View Diary: The unions killed Hostess…another right wing myth. (56 comments)

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  •  Hostess may have been a poorly run company... (0+ / 0-)

    but the union shot themselves in the head in this case. In retrospect if is obvious they grossly miscalculated. They would have been much better off keeping their jobs at Hostess at reduced pay while they could plan for a move to a more stable employer. A crappy job is still better than no job.

    •  They still probably would have ended with no jobs. (4+ / 0-)

      They were going to be bought out anyway. At least they went down fighting for their principles.

      •  Yes probably would have ended that way... (0+ / 0-)

        but probably not today. If those 18,000 workers already have their next job lined up then by all means, stick it to the man based on principle. But if perchance they do not then they should have bided their time. A lot easier to find a job when you have a job. And a lot less stressful on your family.

        •  The company's financials were such (1+ / 0-)
          Recommended by:
          Liberal Mole

          That the employee's pay and benefits were 2% of its liabilities. A 30% pay cut (which is what was being required) would make the pay and benefits 1.4% of its liabilities. The other 97.4% of its liabilities would have remained unchanged.

          The company's submitted bankruptcy "plan" had no other changes to its financial structure, just that tiny change, which would have meant that within a month after the concession, they would once again fail to make their debt payments.

          The company has 1.2 Billion dollars in debt. It could not afford the interest payments, never mind principle. A 0.6% change in its liabilities would have had exactly zero impact on the effect of the gigantic debt albatross.

          So, would the employees have bought themselves a few weeks of paychecks? Maybe, but probably not. And if they had bought an extra few weeks, the few extra paychecks would be 30% smaller. This way, at least, they also kept what should have been their own pay from further lining the pockets of the greedy bastards who ruined the company for personal gain.

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