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Out of the Blue

Sad about Hostess Brands closing, since it seems to be the result of an insoluble labor conflict, and while strikes often result in threats that they will result in the closure of a company, that rarely seems to actually happen as it has in this case. I find it interesting how many people are going all Tallahassee over the pending Twinkie shortage, however, as they are the poster child for crappy junk food, and I don't know anyone who has eaten one in recent memory, much less actually savors them (labor strife aside, I think if everyone saddened by this actually bought Twinkies, Hostess would be fine). In my opinion, Hostess only ever made one really good product, which was their fruit pies, which I have not seen in a store in over a decade if not longer. I assumed they stopped making them, but I see them on eBay at seemingly exorbitant prices, so I'm not sure if that's due to the Hostess closure, or perhaps they are working off old stock, since these babies are half preservatives anyway (I think it's the latter, as the labels all seem to feature Fruit Pie the Magician, and Wikipedia says he was removed from the packaging in 2006).

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30. Re: More Big Picture Details Nov 18, 2012, 11:30 HorrorScope
 
Dades wrote on Nov 17, 2012, 15:01:
MajorD wrote on Nov 17, 2012, 14:32:
This is a real shame.

I have heard & read more stories of business having to shutdown due to union strikes. So, in the middle of a recession, with unemployment at an all time high, they'll go on strike for more money and better benefits, which the companies simply can not afford as it is, because they are barely sustaining in the current state of the economy, and will eventually lead to the companies having to shutdown their operations. So what have they gained? //Shakes head….

Unions 'might' still have their place in various sectors, but definitely not all anymore. In this day and age they aren't as isolated as they once were, and have definitely become more volatile.

That's what happens with some unions but many corporations know that public apathy towards unions is at an all time high and use that to their advantage. That's not what happened to Hostess anyway, they asked the unions to take a third major concession in 5 years and many of the workers voted against it because they could not afford to take another pay cut. These guys were not auto workers without a high school education making 80k, demanding raises.

There are a lot of markets that have working conditions that practically require unions to avoid corporate abuse but thanks to global trade many companies know they can get chinese workers to do it without that concern.

- DADES - This is a signature of my name, enjoy!

Yeah Hostess filed for bankruptcy protection twice int the last decade, this was coming. But face it they really make garbage anyway and buyers overall are much smarter today then yesteryear on what these high sugar-carb bombs do and it adds up. Sure it was tasty garbage, but being in the doughnut business is not a great thing to be in right now.

But more on point, it is very very hard to take pay cuts, it has a terrible ripple affect. You budget just like companies and when you are making less and then asked again to make even less yet. Things start breaking and what do you do? Go into a bunker mode, spending less, which is the spiral, Hostess and everyone else sells less and less. Continue to cut the middle class consumer and will buy less.

Sometimes to me to fix things, you just need to circulate a bit more money, consumers will spend and that is what makes it all work. Not tighten up, loosen up.
 
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