On November 8 Union workers told their employer, "Hey Hostess, you can eat my Twinkie." It turns out that Hostess did one better and "Ate the Union's Lunch." On November 16, Hostess went out of business and fired 18,500 striking workers.
In the late 1800's, American Labor Unions were created to protect workers. The percentage of Union workers peaked in 1954 at 35% and has been in decline ever since. There was a time when Unions were necessary. Now, we have laws to do what Unions did. Most people see modern day Unions as Thugs trying to bleed their employer dry. Today, private sector Union membership has fallen to below 7%.
Hostess Company was founded as Interstate Bakeries Corporation in 1930. In 2004, Interstate Bakeries filed for bankruptcy. The company survived by eliminating some brands and the Union offered money-saving concessions. The workforce went from 32,000 employees to 22,000 employees. In 2009, Interstate Bakeries was renamed Hostess Brands.
Since December 2011, Hostess Company has been struggling with labor cost, competition in the snack market, and a healthy-eating mandate from Michele Obama. On January 10, 2012, Hostess Brands filed for bankruptcy citing employee's benefits and government regulations as reasons why.
In May 2012, all Hostess workers were warned they could face a mass layoff. Hostess had preferred to go through with bankruptcy and emerge as a growing company with a strong future. The Union decided against compromising for the sake of the company and their jobs. On November 8, 2012, the Union went on strike. Union Bosses put their interest over the interest of the Union's rank and file by telling members they would face stiff fines; if they crossed the picket line.
Hostess warned its employees of the company's financial problems and the need to reduce overhead. The Union thought they would break their employer with a strike. The employees thought their jobs were safe and said, "Hey Hostess, you can eat my Twinkie." They thought wrong. On November 16, Hostess Company went out of business and 18,500 Union thugs lost their job.
Click here to read where Hostess Workers Say They Won By Losing Their Jobs
,