No. of Recommendations: 4
The workout specialist that the hedge fund brought in to try and negotiate a deal indicated on CNBC last Friday that the hedge fund had put in an additional 30M last December when there was little chance that they would get their money back. He said the teamsters had worked with management to try and keep all the jobs. He had praise for them. All workers and management were going to take haircuts. Guess the bakers union didn't believe Hostess would go under. They were wrong and both they and the 70% of the workers that agreed to concessions are all out of work. Work rules of the type you mention increase the rolls of union workers at the expense of efficiency. In Chicago our McCormick Place Convention Center's work rules resulted in losses of business to Florida and Nevada. The cost to dismantle exhibits was so high that many exhibitors just left the displays rather than dismantle them. You needed an union electrician to plug in an electrical plug. The cost of a can of Coke was $6 a can to bring in to the center. The state had to step in and change the rules and some of the business has been won back.

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