Say goodbye to Twinkies

DesertKajun said
No one is saying the company was managed well. just saying an 8% cut is better then 100% cut. and they threw in 25% ownership and board seats. Sounded like a fair deal and my guess the teamsters working there are not too happy with the other union. If 8% was the difference of opening and closing then they are stupid to not take it and have a job while they search out new employment if they are unhappy with the arrangement.

You're assuming that there isn't another employer who will take over the space created by the fall of Hostess that will pay better wages. For example, many of the Hostess brands are going to be sold off. Someone will probably by Twinkie and the factory(s) that made them. They'll need to hire people to run them.

So, let's say the baker's union did a market analysis, and determined that Hostess' competitors paid on average $14/hr with benefits. Further, the market has a demand for X products and that most likely Hostess competitors will expand to meet that demand after Hostess' falls. Would it not be rational to NOT make a deal, when there's a high probability that another company will be needing their talents and will pay higher wages?