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Sunday, December 2, 2012

Labor Unions Destroying Businesses

Mychal Massie and the Daily Rant on Unions, specifically the Hostess (Twinkee) case. I was wondering just how thankful members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union were this past Thanksgiving. Specifically those formerly employed by Hostess.

The brilliant job of guidance and concern the union provided and showed for the Hostess workers has to stand as one of their pivotal achievements. Their example of negotiation was a stellar example of the reason the members had paid their dues for so many years. Given the choice of accepting the concessions requested by Hostess and keeping their jobs, the union ordered the workers to strike. The union's idea being that they would show those evil owners who had explained that the concessions were necessary because their liabilities were 2.5 greater than their assets.

Of course, I'm being facetious. My point is that the union people will suffer because of the action Hostess was forced to take because of the union bosses.

Union president, Frank Hurt, may have opined that "Hostess Brands is making a mockery of the labor relations system that has been in place for nearly 100 years." But as Hostess CEO Gregory F. Rayburn pointed out the arithmetic speaks for itself saying: "We simply do not have the financial resources to survive an ongoing national strike."

Thus, Hostess is scheduled to close its doors, and the inflexible union employees found their Thanksgiving a somber event. Their Christmas will not be any better. It's reasonably uncertain that they will receive their first unemployment check by Christmas. But their union president will suffer no such concerns.

This should be a grime reminder to Walmart employees who have been under assault to become unionized for at least several years. And it should certainly be a reminder to other union members that businesses cannot continue to yield to every union demand. It should also give workers cause to question not only why they need union representation but also to consider why unions are even needed.

Meritorious pay raises, reasonable participation in health co-pays, the number of vacation and sick days, can be worked out without union gangsters and thugs using threats and intimidation. Union protests may make for good theater on the evening news, but it doesn't help companies like Hostess stay in business.

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