Hope you guys don't mind me butting in here.
Kathy - regarding that Hostess picture. I can't believe the union chose to put the company out of business instead of taking a pay cut. 8% less pay is better than 100% less pay. DUH.
Several unions were involved. ALL of them agreed to go ahead, EXCEPT the "Baker's Union." They held out. And now - over 18,000 people are unemployed. I read that some bakers were crossing the picket line. They wanted to go against their union. Didn't help.....
No one in his right mind would have found the warnings idle, considering that the company had already declared bankruptcy in January of this year — but the cocksure leaders of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) did, and continued to demand that workers strike at over two-dozen of the company’s 33 plants.
The union’s demands had plagued Hostess for years, forcing — through the legalized monopolization of labor supply — wages that the market wouldn’t bear. The striking line workers were paid healthy salaries, $16 to $18 per hour. In a low-profit, low-selling-price business such as baked goods (things that are basically commodities), those wages aren’t sustainable, especially considering that baking and distribution involve a lot of manpower.
According to the Bureau of Labor Statistics, the mean hourly wage for the designation of “bakeries and tortilla manufacturers” was $12.57 in 2011. Supposing that Hostess’ median wage was $17, they were paying 35 percent more than the national average.
Hostess was looking for wage concessions of only eight percent. Even after the cuts, Hostess still would have been paying their workers handsomely, 24 percent more than the industry norm. Mind you, this one-year cut would have been followed by
guaranteed wage increases of three percent in each of the three years that followed, capped off by one percent in the fourth year. So, the pain would have been only temporary and cancelled out in just three years.
But, BCTGM gambled and it didn’t pay off. Rather than keeping over 18,000 people gainfully employed in a bad economy, where the
U6 employment rate is approaching 15 percent, they opted to put every one of them out on the streets, where their $680/week becomes $0/week until unemployment benefits kick in at $400/week, putting a drain on taxpayers who are already paying for unprecedented numbers of unemployed for unprecedented lengths of time. Once those benefits fade away, it’s very likely those workers will remain unemployed, as very few communities support a manufacturing base that can overcome the closure of bakeries as large as Hostess’. So, the union basically sent their workers to the bread lines — an ironic metaphor for food producers.