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Who Killed Hostess?

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  • Description

    Author Phil Dine on the factors that led to the demise of Hostess.

  • Duration 6:05
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The great American brown host us it is no -- US Bankruptcy Courts will decide today to approve the company's request to liquidate.

According to finally.

-- -- wants to shut down by Chris fire over 181000.

Employees and pay.

One point 75 million dollars in incentives and bonuses to nineteen senior manages.

The management says the break his union -- the liquidation while the union workers blame bad management.

Joining us now -- line.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Good to -- -- there are you gonna tell me that post test was done in the buyback management and that there is no justice because these nineteen manages got pay increases and bonuses.

Just before the close of business.

As usual store I tried have a balanced and fair view -- look -- Look at any one of these cases is there's several possibilities that I think all apply here.

One is that management is is either being overly demanding or trying to compensate for poor management and and -- -- out and on workers.

The union can be unreasonable or social and economic trends can simply have done the company and -- I think all three apply here.

You wouldn't say that the unions.

I really did it in because they would not allow hostess to operate efficiently.

And you know about all these problems Webster a driver of one host as truck could not take -- -- -- products he could take others and NC gonna have to.

-- it delivers on the same route.

The EU really cannot run a company efficiently we've got union problems -- back cash.

-- this company could not run itself officially in the last ten years they've had seven CEOs.

They've had about six or eight new business plans.

They gave level they've already been in bankruptcy and come out and -- financial advisor they hired.

Last year advised him not to come out yet because they wouldn't survive they did come out and while they were doing that they gave their then CEO with 300%.

Increase.

What what they weren't look.

Mobile why did the union the -- union let's say fiscal debate creek confectionery tobacco workers and grain millers international unit.

Why would they vote no knowing knowing full well they -- lose their jobs why would they do that is what is not.

Kind of spice.

They would I don't care what happens way to stick it to you because -- brought in management.

I I think it I understand what you're saying.

But I think that they felt they had just taken.

Too much a couple years ago that over the past ten years they've given up 8% -- in wages they've given back a lot of things.

And when the company went to bankruptcy they promised the court that they would -- the concessions.

Integrate into reinvesting in the company they did not do that -- said they gave management lavish raises.

Okay what happens if I think that twinkie the brand and the recipe.

Is almost certainly going to be sold to somebody else I -- this old 68 million dollars with the -- is so far in 2012.

-- eight if somebody would by that name and recipe sure they could make some money but my question days.

You wouldn't expect to Bosnia to take on them say human union woke us would you.

-- companies in general don't necessarily like W union in their I don't know what's gonna happen I do think the union certainly could have done a better job.

For example communicating with the Teamsters -- there -- their fellow Unionist about what was going on.

I don't think anybody acted oh particularly well here the company normal argued book the Teamsters voted for all of this they want to stay in the job they want to go to war and the -- guys thanks and I -- just can't take this you're out of what took.

It's a mess all around but -- -- -- business.

It's -- -- -- bloody minded maybe that's an English expression but it means cutting off your nose -- effects.

I see that -- but it started with the company's again a company that does seven -- -- ten years is not particularly -- -- think -- agree -- that.

I'm saying that maybe they couldn't manage it bought 5500.

Distributions.

The delivery routes 565.

Distribution centers 371.

Different pension plans.

I mean who couldn't manage that if the unions will not and it will not.

Walk away from these disputes these measures and these tiny little disputes about.

Who which truck can carry which product if you can't get him to walk away from that how could you manage anything.

A by the way the guys at the end.

Who was in who'd invested host as the last group of manages they lost their investment and lost at all.

Stewart I know it's beyond to ever find any fault with management but I really think if you look at this a little more carefully you can find -- on both sides -- just like free market capitalism -- -- all compete on an equal footing and equal playing field so that -- that the customer gets the best price.

I'm with all how rising wages because -- productivity goes -- Unions consistently stand in the way of backed.

-- -- well you've he shouldn't -- you should be happy -- victory you just won the last election.

-- guess you didn't.

You do not -- yeah I I I suppose you could say that because one guy who one guy was fairly favorable the other guy was out to destroy organized labor and not and he did not succeed.

Thankful -- on the one last week and I'm gonna stretch this I have to last.

Do you think apple would be about a company today if -- were unionized.

You've asked me this before and I'll say the same thing he and I don't know I suppose it depends on what kind of you you know -- don't got to tell you don't know.

You don't you think you be using your iPad annual small quoting -- my -- If you was union -- what will do well let me tell me -- -- Let me tell you this -- I think that if if if apple had the same management as hostess I don't think -- matter what they did as far as union they fail -- get back.

Now -- -- not back good we're joined I think filled on everybody always a pleasure thank you film comes is again.

Thanks are not about.

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