Hostess had been in financial distress for some time, filing for bankruptcy in 2004 and again in 2009, at which time it was rescued from oblivion by a team of hedge fund and private equity investors. In January 2012, it filed for bankruptcy yet again, citing an operating loss of $341 million, declining market share and increases in uncontrollable costs for ingredients and fuels.
Even more crippling were counterproductive work rules, unsustainable labor costs and $2 billion in unfunded pension liabilities, the consequences of having to deal with no fewer than 12 different unions representing its employees.Think about that, folks with brains.
Just think about it. Counterproductive work rules were, according to Mike Rosen, Ponzi-scheme promoter, even more crippling than multiple bankruptcies, a nine-figure operating loss, declining market share, and ingredient/fuel costs.
Sadly, the "counterproductive work rules" were part and parcel of the wage cuts demanded in the first bankruptcy. A lot of people have complained that the union drivers were prohibited from unloading their own trucks. At first glance, that sounds stupid.
But consider the circumstances. While Hostess was negotiating for wage cuts for the drivers, the drivers were negotiating with Hostess for work rules. They bargained. "Yes," the drivers said, "I will accept a pay cut, but you will have to get someone else to unload the trucks."
That's not stupid. That's reasonable. So stuff the "counterproductive work rules" nonsense. Hostess asked for them when they asked for a 30% pay cut.
Who wanted that trade-off? Not the unions...
I've already demonstrated in a previous post that the "unsustainable labor costs" stuff is abject nonsense. Hostess themselves created that problem by cutting wages to the point that no one wanted to work for them anymore. I'm sure there are other, better ways of making sure your labor costs are unsustainable, but this is a pretty good method.
You gotta love Rosen's devotion to right wing orthodoxy though. He concludes with this:
Like so much of our society today, too many unionists have an entitlement mentality regarding their jobs, their pay and their benefits that exceeds the value they add to what they produce. They don't care about consumers, investors, management or taxpayers. Twinkienomics is a reality check.Consider that, folks with brains.
Expecting to be paid for your labor, expecting your company to keep their promises, this is an "entitlement mentality." I can't believe the Post continues to print this drivel. It's not only factually wrong, it's offensive.