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…and everybody lost….

November 17, 2012

I find it so sad when people get angry and make poor decisions that ultimately cost all people involved. This story about the bankruptcy and ultimate liquidation of Hostess, the company that made Twinkies, is a classic example. People think with their emotions and not with their brains. Hostess was losing money hand over foot. They appealed to the twelve unions their employees work for to grant concessions. Only one refused, the bakers union. They went on strike, knowing it would result in the liquidation of the company. It did. At the end, they were not even returning the calls of management. A classic story, and one I have seen repeated in micro and macro versions over and over again, in lots of different ways. The union, it’s members, company management, the venture capitalists: everybody walks away with less.

http://dealbook.nytimes.com/2012/11/16/hostess-brands-says-it-will-liquidate/?ref=business

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One Comment
  1. Georgann Greene permalink

    I agree that things like this are a shame. Only with cooperation will there be reasonable solutions to problems. Being stubborn just about guarantees failure of real problem solving on any issue. Leadership of unions must develop an understanding of the cost of running a business and give guidance to their members accordingly. The people of this country need jobs, not a union that destroys companies. The workers are the ones who suffer as a result of bad counseling by the union bosses.

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