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The Hostess Debacle--Study This--To See Why Unions Are Doomed

Discussion in 'U.S. Politics' started by Johnny Tremain, Nov 17, 2012.

  1. Johnny Tremain

    Johnny Tremain Well-Known Member

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    Study--on your own if you want to know--what happened in the Hostess Union battles to understand why this old crony system of mindless edicts is doomed to either disappear or take down the entire US manufacturing and service industry.
    Read the rules, regulations and restrictions that were the center of it all.

    It is the classic example of everything bad about Union Bosses.
     
  2. Openmind

    Openmind Well-Known Member

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    The Hostess debacle was created by a lack of foresight and marketing plan by Hostess itself. . . and by companies like Bain who were waiting like vultures to "save" what could be saved (obviously, only in terms of "money") and close the doors on workers.

    Anyone with a little business sense understand the need for EVERY industry to look at the trend in their consumer basis, and how their product can benefit OR SUFFER from that trend, then adapt their product to move ahead or at least in pace with the new consumer trend.

    This is the difference between "sun up" and "sun down" industries.
    Cadillac is a good example: Cadillac, once the leader in quality and the darling of America, the PRIDE of American automobile industry, was failing miserably with sharply lower sales.

    Why? Simple. Cadillac's customer basis was LITERALLY DYING (not unlike the Republican basis), because that basis of faithful Cadillac customers had now aged, and although that "older group of upper middle class and wealthy, mostly White, mostly men was no longer numerous enough to drive the market of big, old, gas guzlers.

    Cadillac was the typical "sundown" industry. And it is only when, FINALLY they got some new blood that understood that they had to change the IMAGE of Cadillac to a more modern, more gas efficient, smaller models, that Cadillac is painfully making a small come back.

    Same with Sears. . .it took them MUCH too long to realize that the "image" of Sears as the purvoyer of everything to all of America through their thick catatlog no longer met the need and the preference for the younger, more mobile, more technologically incline and more urban population. Their "faithfull" basis of farmers and country folks was also LITERALLY dying, being replaced by a younger generation of more savvy customers, who found it a lot easier and more interesting to switch from Sears catalogue to Amazon to do their shopping. Today, Sears Catalog have only two values: they may become a collector's item, and they are still helpful at Thanksgiving to give a lift to the 3 and 4 years old grand kids while sitting around a family meal while visiting their grandparents.

    Hostess is not any different. No one at Hostess seem to notice that the customer trend was no longer in high calorie, low nutritional value "goodies," and that their once celebrated "dingdongs and twinkies" didn't meet the needs of ANY real customer basis any longer (and that they shouldn't!)

    Instead of transforming to move toward healthier and more creative snacks, they continued to keep their head in the sand (again. . .reminds me of the Republican party!). . .and to blame their WORKERS for the downtrend in the sales of their outdated product.
    In fact, I am surprise that they are not blaming the First Lady for destroying their business by encouraging kids and parents alike to be more conscious of what they eat, and to push for more "healthy snacks!" I'm sure this will come very soon though!

    Yep. . .there is quite a bit to learn in the course of an MBA program!
     
  3. Johnny Tremain

    Johnny Tremain Well-Known Member

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    Oh dear.
    I guess I asked for that one.
    I won't comment on the discourse--it does speak for itself. Caveat Emptor.
    (I forgot the Head of the Politburo was around.)
     
  4. Openmind

    Openmind Well-Known Member

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    Smart decision.
     
  5. Johnny Tremain

    Johnny Tremain Well-Known Member

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    Caveat Emptor--was the operative word.
     
  6. Openmind

    Openmind Well-Known Member

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    Yes, Dear, whatever! :)

    Here is a factual link demonstrating that your habit of "blaming the victim" is often based ONLY on a very small part of the story. . .usually the part that suits YOUR opinion!

     
  7. Johnny Tremain

    Johnny Tremain Well-Known Member

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    Well, I guess that wraps it all up.
     
  8. Cruella

    Cruella Well-Known Member

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    The whole Hostess Corp closed, not three of their bakeries.

    Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brands’ debt.

    “We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, chief executive officer. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”
     
    GenSeneca and Pandora like this.
  9. Johnny Tremain

    Johnny Tremain Well-Known Member

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    With manufacturing costs already too high and foreign competition coming in at enormously lower prices--America is very quickly pricing itself out of markets in all fields. Unions will speed this along.

    It is a simple equation.
    Not hard to understand.
    And--foreign quality is equal to anything we can do here. Game over.
    We make no TV's any more.
    We make no computers (consumer) any more.
    We don't even make light bulbs.
    The auto market still exists--subsidized.

    What will we do to generate profit in the future?
    Cupcake boutiques?
    Consultants?
    It is real damn scary for anyone who is still able to think.
     
  10. Cruella

    Cruella Well-Known Member

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    You have to look at the left's long range goals. They hate capitalism and they are globalists.
     
  11. dogtowner

    dogtowner Moderator Staff Member

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    was Hostess management far from perfect ? sure, they agreed to make their operating costs high.

    but the specifics of this are that 5000 members of the baker's union allowed their management to shutter Hostess and 18500 people no longer have a job. 13500 people have to be upset and for good reason. it wsa the bankruptcy facilitators that crafted the take it or leave it deal and the left. doesn't take a not quite MBA to notice this critical point.

    the profitable product brands will get bought and enjoy a rebirth, probably in places that want to encourage business (right to work states as an example).

    nice try bringing Bain into this but not really. sounded pathetic whe Trumka tried it too.
     
  12. Openmind

    Openmind Well-Known Member

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    Correction: We do not approve of RUN AWAY CAPITALISM that will walk on everyone, that will destroy any business if there is more money for the top capitalists to be made through the sale of the many parts or the exportation of those jobs outside the US rather than look at the HUMAN cost and the HUMAN benefit of taking a slightly lower profit while providing a living for the workers . . .even though workers who do make a decent living will obviously be a great natural source of DEMAND for the products.

    Capitalism exists in EVERY developed country. It is once again arrogant to believe that the US is the only country in the world having invented or practicing capitalism. Every country in Europe practice Capitalism, and does VERY well. . .in fact, US corporations are always VERY anxious to set up shop in Europe. . .and most have at least a subsidiary there IN SPITE OF MUCH HEAVIER LABOR LAWS that protect the workers AND THE HIGHER TAXES in "social democracies" that provide good safety nets for the people.

    There is a huge difference between CAPITALISM as it existed 30 years ago, and today's RUN AWAY CAPITALISM that promotes money making "ventures" that are in no way related to employment or the well being of the country and its people, but are just "gambling" on financial instruments that are in no way supported by REAL products.

    This kind of capitalism is what creates those "bubbles" that destroy economies.
     
  13. dogtowner

    dogtowner Moderator Staff Member

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    you realize bubbles are nothing new right ?


     
  14. Pandora

    Pandora Well-Known Member

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    Just buy little Debbie’s snacks, they are not union and actually affordable :) You get the same treats that taste just as good, actually more ounces in the little Debbie than the hostess and its less than half the price for most things.
     
  15. GenSeneca

    GenSeneca Well-Known Member

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    How do YOU define Capitalism? Please, no copy and paste nonsense, I want your actual thoughts on exactly what you believe Capitalism is. Thanks in advance.
     
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