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Wednesday, November 21, 2012

Twinkies


The Hostess Company is in Bankruptcy court and has asked the Employees to take a wage cut that would allow the company to continue operations.  The Union(s) have declined.  It appears that Hostess will stop operations and liquidate it operations.

On the surface it appears that the Unions have taken a position that “killed the goose that laid the golden egg”.  Not so fast.  The Unions claim that the Company has lost market share due to mismanagement of their product line by not adjusting to health conscious consumers.  I suspect that no one would argue that Twinkies, Ho Ho’s, and Cup cakes are really good for you.

If we assume that the Union’s assertion is correct (and I think it is) that in no way changes the present situation which is that the immediate survivability of the Company is in the Union’s hands. What should the union do?

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