Hostess' problem seems to be that their products are widely copied. Hence, they are no longer unique and no longer carry premium prices.

In commodity products, you have to be the low cost producer if you cannot get customers to pay a premium for your brand.

Cost is the cruxt of the problem. If unions will not co-operate, their plants will shut down, they will lose their jobs, and competitors will fill the void--probably with idle capacity.

Survival of the fittest. Adam Smith would be pleased.