Thread: Economics Strikes dont always work.
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Old 11-16-2012, 08:19 PM   #138
bobbymitch bobbymitch is offline
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Quote:
Originally Posted by alnorth View Post
This episode is a good illustration that there is a difference between a smart union that knows when they need to give in, and a stupid union.

Since its a privately-held company, the unions couldn't access the books, but rather than go all angry fire and brimstone, the teamsters wisely hired independent consultants to take a good, long, hard look at the company. Those consultants came back and said "look, based on what we do know from court documents the company is not in great shape and is heavily in debt. Here's the bad news: that debt is now owned by hedge funds. Those hedge funds are now management, and those guys are not businessmen, they are cold-blooded reptiles. If they don't see an easy, clean path to getting their money back through a new contract and concessions, those bastards will pull the plug, fire everyone, and sell off the company, so you'd better agree to their final offer"

The baker's union was run by a bunch of morons. They had no sophisticated outside experts giving them good unbiased advice, they were all angry, emotional, and led by fire-breathing hellraisers convinced that the company was lying. They ignored the Teamsters who pleaded with them to accept the contract, and put up enough of a roadblock to make their new owners give up on finding a new deal.

edit: apparently Hostess did open their books recently, and thats what prompted the Teamsters to conclude that it was not a bluff. From another article:



From a teamster angry at the bakers:
Obviously this isn't the first time for union stupidity. Many years ago, there was one of the last large shoe manufacturers left in southern Missouri. With growing pressure from imports, they could not give employees the expected annual pay raise and the union went out on strike. The family owned business gave the union a copy of their books and asked then where they could cut costs to pay for a pay raie. The union leaders were adamant that the the company provided a "deceitful set of second books" and not the real ones. The company had no choice but to close their four plants and 1,200 people were out of a job. The company tried to hang on by importing their line of shoes, but eventually went bankrupt.
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