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Hostess is a really bad example for why unions are bad. Hostess suffered from several non-union related problems such as repeatedly selling off profitable asset
by fredophile 11y ago
Hostess is a really bad example for why unions are bad. Hostess suffered from several non-union related problems such as repeatedly selling off profitable assets, failure to update their product line to keep up with trends, and repeated raises for management while the company continued to decline [0]. I can't find a relevant article to site right now but iirc the unions had already made significant concessions previously (I think it was during Hostess' previous bankruptcy). Hostess failed for many reasons and mismanagement was at least as big a problem as labour costs.
[0] http://www.forbes.com/sites/helaineolen/2012/11/16/who-killed-hostess-brands-and-twinkies/ http://www.forbes.com/sites/helaineolen/2012/11/16/who-kille...
- brightball 11y agoI stand corrected