cloudboy
Posts: 7306
Joined: 12/14/2005 Status: offline
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I read about this in the NYT today. The Baker's union simply stopped negotiating with Management, fed up with the humiliations of making concessions to bad management. The union just stopped accepting and returning calls to management. Also, the trend of Americans shying away from processed foods has hurt the demand for Hostess products, but this trend seems at odds with the explosion of obesity in the USA. Its not like Coca Cola is in dire straights, although Tasty Cakes went through a distressed sale of its operation because of revenue problems. ----------- Its hard to blame American workers for wanting better jobs; the question is -- are there any federal policies that might help shore up America's middle class beyond more progressive income taxes? -------- quote:
I don't think they will. Here's why: I read that their salary when IB went bankrupt the first time almost 10 years ago was $48000/yr. Remember, these are skilled workers (bakers by trade), not box stuffers. The company's ultimatum was for a salary of $22,000/yr. $22,000/yr is not much over McDonald's pay. In the workers' best case scenario, they can get another baker's job. Maybe not a $48k/yr job, but certainly above minimum wage. Win. In the worst case, they get the lowest paying job they can get--running the fryolator at McDonalds. Pay? $22,000/yr. Not a win, but nothing has been lost. selfbnd411 Thanks for posting some hard information about the subject, this really helps put things in perspective. quote:
Because that's not how it works in the corporate world. If a company's sales go south, in Hostess's case, or the company does something illegal and gets fined billions, like a Fortune 500 company I used to work for, the shareholders and upper management will not allow themselves to lose income. Instead, they make up the difference by laying people off, expecting the remaining employees to do 2x the work at 80% the pay, all while raising prices for customers. Everybody has to pay for upper management's mistakes.... except for upper management. Well stated. My wife's company routinely feels that it can ask more from its employees without upping their compensation.
< Message edited by cloudboy -- 11/17/2012 5:44:41 PM >
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