Friday, November 16, 2012

Another one bites the dust...

A long time ago, Unions had a place in our world.
Today, not so much...

Thanks to the largely unreasonable efforts of another Union to demand more, Hostess Cakes has shut its doors. No more Twinkies... no more Ding Dongs. I mean, DING DONGS! A company that can name a cake Ding Dong should be allowed, well... anything.

Hostess Goes Out of Business

This is a familiar story in our country. The steel mills, Wheeling Pitt, in the Ohio Valley. Gone. Why? Because people are dumb. And they suck donkey winky. No one just wants to work. No one is grateful for work... they want more, more, more. Then they hire some stupid idiot to come in and "negotiate" for them, and when that doesn't go well, they strike.

WELL, TRY STRIKING NOW, YOU DUMBASSES! Or better yet...would you like a job? I hear McDonald's is hiring...

Cheers, to Hostess for not giving in to the demands.
Sad, for everyone else who really like eating the cake that was rumored to be able to survive a nuclear blast and armegeddon.

Enjoy this coming Holiday Week.
With Love,
Bethanne


9 comments:

  1. Now, let me tell you how I really feel... haha.

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  2. Donkey winky?

    Now, Bethanne. Is that the sort of language a young lady should use? I want you to know I was blushing when I read that... Your challenge, of course, is to work that phrase into one of your novels!

    BTW, I'll be talking to one of my computer geek friends about the hard drive tonight to see if they can suggest anything. They finally got back from Japan or England, not sure which... I'll let you know!

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    1. Sorry to make you blush...and no! not language for a lady at all. My dad will probably read this and blush, too. And then he'll roll his eyes and not visit for a while. The blog I mean. :D

      this is an incident that will never be spoken of... words just aren't enough. :D

      Delete
  3. Hey Chick!

    I respectively disagree with your post about the 'Unions' being the bad guys and are to be blamed for closing of this place.

    Hostess has revenues of about $2 billion per year.

    TWO BILLION!!!! EVERY YEAR!!!

    People have had enough of Corporate GREED! That's all this is. The rich want to be richer, on the backs of the people that got them there. They don't want to raise the MINIMUM wage, and this is what happens. Hostess corporation will file for bankruptcy and distribute that money not among the workers that earned them that money but among their investors and the greedy bastards at the top...

    You heard about Wal-Mart?

    http://www.huffingtonpost.com/2012/11/16/walmarts-internal-compensation-plan_n_2145086.html

    In the 80's we were told that GREED is GOOD..for whom? Not for the regular guy that wants a decent wage, but for those that 'play' with stocks & bonds, and Corporations that ARE PEOPLE!

    Other than that, I have no opinion on the topic...

    On another, totally unrelated topic, I sent you an email at the beginning of the month, to come on over and push your book...You still want to come?

    Mel

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    1. I love disagreements! :D

      and definitely disagree...

      I would love to push my book. I don't remember an email and will go find it. If I missed it, I'm sorry! Thanks for stopping in.

      Delete
    2. Just my 2¢...

      In this particular case, I have to side with Bethanne.

      Yes, revenue is good. If your business doesn't have revenue, well, you don't have a business.

      But revenue isn't profit. From revenue you have to subtract things like the cost of producing what was sold, wages, taxes, interest payments, etc.

      That interest payment was one of the problems with Hostess. They had over 800 million in debt to pay interest (and principal) on, plus the expense of fighting off a takeover by a foreign company (Bimbo - it's not what it sounds like - they're a huge Mexican baking goods company operating in the US through Bimbo Bakeries USA, and I see their trucks on I-95 quite often).

      As far as how the company deals with unions? They had already worked out a deal with Teamsters Union to reduce pay and pension benefits when the union saw the situation the company faced. Now those Teamsters will be out of a job even though they did what they could and both sides were able to work out a suitable agreement.

      But the Baker's Union decided to hold to their demands.

      Were the Baker's Union demands the whole reason for the shutdown?

      No, the debt was a big problem, too. But the company hadn't made much a profit in the last 10 years, having come out of bankruptcy not too long ago, and this failure to negotiate was more or less the last straw. They were able to work out a deal with the Teamster's but not the Baker's? I have to give the Teamster's a "thumbs up" for being smart enough to understand the situation here.

      And could there have been some bad decisions by management along the way? I'm not sure since the company has been through a number of hands in the last 30 years, but I'm thinking that may have added to the problem, such as compensation for higher executives. But the top 4 had been cut to $1 per year under restructuring (to be restored later, but that only works if the company is still in business).

      Remember, the Baker's Union was offered 25% of the company. If Hostess was making 2 billion in profit, do you really think they would have turned that down?

      But it wasn't profit. Well, you could say they had a profit, but it was often a negative number. So, at the end of each day, Hostess was a little worse off than when it started. You can only do that for so long.

      Now, the Baker's Union workers lose.
      The Teamsters workers lose even after what appears to be an honest, fair, and successful effort in working out a deal with Hostess.
      The management and other workers at Hostess lose.
      Even the companies that hold the loans that allowed Hostess to remain operational as long as it did may lose because what is recovered in liquidation may not cover what was loaned to Hostess.

      The only winner here may be Bimbo. They'll probably move in to fill part of the void left by Hostess' closing.

      I'll step down from my soap box now.

      And, as always, Bethanne, you may choose to post or delete these comments depending upon whether you feel they are appropriate for your blog.

      Delete
  4. Before I wrote my short reply about liking disagreements, I wrote a marginally larger one that indicated, I would need to see the details. Me, on one side of the fence, Mel on the other... I was sure there was a middle ground a person like me didn't know about. The real story behind the news, so to speak. As there usually is one. :D

    Anyway, I lived in the Ohio River Valley, and saw first hand the destruction Unions can do to a company at Wheeling Pitt. There were other factors involved in the closing of the steel mills... definitely, but those Unions did not see the bigger picture of what was happening.

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    1. Believe me, I'm more on your side than the middle having grown up in the shadow of what once was the great Bethlehem Steel Company.

      Delete
    2. Believe me, I'm more on your side than the middle having grown up in the shadow of what once was the great Bethlehem Steel Company.

      Delete

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