The Nov. 20 letter “Union take-down” assigns total blame to labor unions for the collapse of Hostess Baking. The labor unions are not blameless, but what about the equity fund owners and management? The union did agree to concessions, just as they did in the Hostess bankruptcy of 2004, but the equity fund owners wanted more.
While the company was filing for bankruptcy, for the second time, earlier this year, it tripled its CEO’s pay and increased other executives’ compensation by as much as 80 percent. That’s a bonehead management move. Why should these workers endure further wage cuts to reward the poor performance and bad decisions of the management and private equity owners?
Try, for a moment, to view these workers are business people themselves, who must decide the value of their time and labor and whether to provide those services at a discount in the faith that the management will make good decisions going forward.