Phatscotty wrote:My biggest problem here is that I have a gut feeling that the union employees turned down the 5% pay cut with a smile on their face, because they are going to sit back and collect unemployment for the next couples years.
I find that hard to believe, but that is based on my NZ pov; we have a pretty big welfare safety net, but even then most low income workers would still rather work than collect the dole (aka welfare) - mostly because it'll be a pay cut (they get less from the doel than their low income job). I dont know if its different in the US; does welfare give you more cash per week than 40 hours of low income work? (I am aware of the welfare cliffs that patches posted, but you only get all of that welfare under certain circumstances such as solo mothers etc, so for sake of argument I am talking about a single working age individual).
It also bothers me, because the answer to our economic woes is more jobs/more taxpayers, not less jobs/more "emergency" benefits.
Government racking up debt to pay for welfare, or a failing company racking up debt to pay unhappy workers. Both are bad for the economy. The best solution is that hostess gets chopped up, sold off, the remaining assets are rejuvinated and some of the 18k workers are re-employed in a new more efficient organisation(s).
Wages have been going down for a while. We're just on the other side of the longest Recession ever (that was not a depression). Unions needs to get real/adapt/evolve. And if you want to understand where I am coming from, just know that I get a letter in the mail regularly about how my union pension is 98% underfunded and at critical status. So yeah, I know how unions operate, where the money goes, how much is spent on administration, and given to slimy politicians who use their power opposite of my own interests....
Im left wing, but im not a unionist by any stretch. As you say the union of old is an outdated entity. Im all for employees fighting collectively for their right, but I dont think you need a union to do it anymore.
However I dont think for a minute that the union decision to reject a wage cut was what caused Hostess to fail; it was the poor strategic management and rising costs (i.e. their balance sheet looked rubbish), I too would reject the pay cut (and not because I am not willing to suck it up for the company, but because the company has a track record of shithouse management). Those employees made the correct decision (via the union) I reckon.
I go to the gym to justify my mockery of fat people.