The Motley Fool Discussion Boards
Retirement Discussions / Retire Early CampFIRE
|Subject: Re: Thomas Sowell on the unions killing Hostess||Date: 11/20/2012 9:36 PM|
|Author: CCinOC||Number: 656243 of 779499|
Ripplewood Holdings invested $150 million dollars in Hostess and lost it all.
Hostess paid out $150 million in health care benefits to its retirees last year, but over half the retirees had never worked for the current Hostess, thanks to the demands of the union that the employer pays for the pension plans of a bankrupt company on the shoulders of the surviving rival. (Remember that Hostess filed for bankruptcy back in 2004.)
Union rules forced Hostess to run separate truck fleets for delivering breads vs. sweets. These routes were making the delivery charges (and salary costs) for their products much higher compared to the rivals of Hostess. Yet union officials blamed management for not meeting financial predictions. (Gee, I wonder why they couldn't meet their financial goals...)
Workers were asked to take an 8% pay cut and pay for 17% of their health care premiums. In return, they would get to own 25% of Hostess, plus $100 million of the debt would be paid back to the unions.
To anyone who proudly supports the Bakers Union: If you owned a business, would you want all your employees to be members of the Bakers Union? Think long and hard before truthfully answering that. Oh, I forgot...everything FeedMeCrap writes is a lie.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|