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Nov 23 2012

Do the Math

Had Big Unions cared enough to do a little math, they would have realized that their parasitical greed would kill the host at Hostess. Via ZeroHedge:

Doug Mansky, a Hostess driver in Detroit and a member of the International Brotherhood of Teamsters, was in the process of moving to a cheaper condominium on Tuesday, after his union had agreed to an 8% pay cut that he said would shave $200 a week from his income. After Judge Drain cleared Hostess to impose the same new labor terms on the bakers union, they went on strike.

If an 8% cut would reduce his income by $200 per week, he was making $2,500 per week, or $130,000, plus who knows what extravagant benefits — to drive Twinkies around. No doubt the union contract protected him from actually having to carry the Twinkies into stores.

Imagine how much cheaper food would be if not for unions. Imagine how many people who don’t have jobs would have them if it didn’t cost six figures to hire a deliveryman.

But there is good news for Twinkie lovers. The iconic American snack may continue to be made — by the Mexican company Grupo Bimbo:

Bimbo has already sniffed around the bankruptcy proceedings that have haunted Hostess for a decade, in a bid to further expand its North American portfolio and pad its $4 billion net worth. Bimbo reportedly put in a low-ball bid of $580 million a few years ago, Forbes reports, and may be rewarded for that move since the Hostess kit-and-kaboodle may fetch more like $135 million today.

But the big question is whether the same problems that haunted Hostess — high sugar prices tied to US trade tariffs, changing consumer tastes, and union pushback against labor concessions — will squeeze whatever profit is left in the brands.

Especially if a Mexican buyer is involved, production may go the way of the Brach’s and Fannie May candy concerns: south of the border. With US sugar tariffs set artificially high to protect Florida sugar-growing concerns, a non-unionized shop with access to lower-priced sugar in Mexico could be the Twinkie lifeline, economists suggest.

That is, Big Government and Big Unions are repressing America to the point that Twinkies may have to be imported from Mexico, which enjoys relative economic freedom.

Mexican-Twinkie

On tips from Wiggins and F.D.R. in Hell.

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  • Buffalobob

    The ultimate poke in the union’s eye would be to provide amnesty to the illegals in this country and then hire them as Hostess bakers and truck drivers.

  • Jeffrey

    “[Driving] Twinkies around in a truck” is a more legitimate way to earn $130,000 year than most.

  • Bill T

    Do you think the International Brotherhood of Teamsters will refer to mexican truck drivers as scabs? Maybe they should join the UAW on the border and watch all the empty auto transport rail cars we export, come back full of new cars!
    Then the both of them can say NAFTA been berry berry good to me! I seem to remember Ross Perot saying something about a sucking sound, 20 years ago.

    New U.S.-Mexico Cargo Agreement on Horizon
    http://www.texastribune.org/texas-mexico-border-news/texas-mexico-border/new-trade-initiative-us-mexico-horizon/

  • big-pete

    Now that I am a world citizen like my President, I can’t wait to buy my first “Made In Mexico” Twinkie.

  • AC

    Killing the host is the point. once enough brainwashed and angry people can be transitioned from work to welfare the economy will collapse into socialism, paving the way for union bosses to merge with the bureaucratic overlorda and retain their power and privilege forever.

  • Bob Roberts

    How long until the politically correct demand “BIMBO” change it’s name to stop disrespecting women?

    Meanwhile, in other news:

    Where are the clowns? Well, there’s one, but he’s DEAD!

    That’s just wrong, kids watching the parade and this clown up and dies.

    Apparently the Chinese have no word equivalent to “eminent domain”?

    Xiayangzhang village chief Chen Xuecai said in a telephone interview Friday that city planners decided that Luo’s village of 1,600 had to be moved for a new business district anchored by the train station. Chen said most families agreed to government-offered compensation in 2007.

    Luo, 67, and a handful of neighbors in other parts of the new district are holding out for more.

    “We want a new house on a two-unit lot with simple interior decoration,” Luo told local reporters Thursday in video footage forwarded to The Associated Press.

    Luo had just completed his house at a cost of about 600,000 yuan ($95,000) when the government first approached him with their standard offer of 220,000 ($35,000) to move out — which he refused, Chen said. The offer has since gone up to 260,000 yuan ($41,000). “The Luo family is not rich,” Chen said, acknowledging that they can ill afford such a big loss on their home. “But the policy is what it is.”

    Seriously, is this the sort of thing we need from health care?

    A postcard sent to two Elmira sisters nearly seven decades ago arrived last week at the intended address, but it ended up in the hands of two different sisters.

    The postcard, sent July 4, 1943, from Rockford, Ill., was intended for Pauline and Theresa Leisenring, who once lived in the home along Bridgman Street in Elmira.

    The punch line? Imagine if this postcard were badly needed government run health care:

    Theresa died in 1954, Pauline in 1962, according to records at nearby Woodlawn Cemetery in Elmira.

    Just say NO to obamacare.

    UNION FAIL: WALMART REPORTS RECORD SALES

    So much for trying to disrupt Black Friday sales at Wal-Mart.

    SURPRISE: PA COLLEGE SLASHES INSTRUCTORS’ HOURS TO AVOID OBAMACARE

    Can you say PREDICTABLE RESULT?

    “It’s kind of a double whammy for us because we are facing a legal requirement [under the new law] to get health care and if the college is reducing our hours, we don’t have the money to pay for it,” said adjunct biology professor Adam Davis.

    So basically the result of obamacare is to ensure more people DO NOT get health care AND they also get less money in their pockets. Plus, note, they will pay LESS taxes so not only will the deficit get worse, but the money to pay for all those food stamps and obamaphones will run out quicker.

    Cloward–Piven strategy. It’s happening.

    Jesse Jackson Jr.’s resignation from the House could cost Illinois taxpayers more than $5.1 million, according to the state elections board.

    Illinois will hold two special elections to replace Jackson, a primary and a general, and the state board projects that replacing Jackson could cost $5.15 million total.

    Man shot dead, 19 wounded by Israeli gunfire near Gaza border, Ma’an news agency reports; army says troops fired towards legs of rioters attempting to cross into Israel

    The IDF Spokesperson’s Unit said that some 300 Palestinians approached the border fence in the south of the Strip on Friday morning and began rioting.

    “IDF forces made efforts to disperse the rioters, and when they refused to leave warning shots were fired,” the army said. “Several rioters damaged the fence and attempted to cross into Israel’s territory.”

    According to the statement, troops fired towards the legs of the rioters who attempted to cross the border. One man who managed to enter Israel was detained and was later returned to Gaza.

    France to back terrorist membership in U.N.

    France is considering voting in favor of the Palestinian Authority’s unilateral statehood bid at the United Nations, its foreign minister hinted on Thursday.

    Speaking at a hearing in the French senate, Foreign Minister Laurent Fabius reminded that French President Francois Hollande promised during his election campaign to promote the issue of Palestinian statehood.

  • Ummah Gummah

    Jesse Jackson Jr.’s resignation from the House could cost Illinois taxpayers more than $5.1 million, according to the state elections board.

    Illinois will hold two special elections to replace Jackson, a primary and a general, and the state board projects that replacing Jackson could cost $5.15 million total.

    And it’s worth every penny!

    .

  • Ummah Gummah

    .

    If all the businesses and jobs are moving to Mexico, does that mean that Americans will be welcomed by the Mexican government with FREE healthcare and FREE food stamps, advertised during baseball games perhaps?

    Will the border be open in both directions?

    .

  • http://www.henrypbabcock.com Henry

    5 workers needed to get a single delivery from the factory to the retail shelf… do the math.

    “Union work rules usually required cake and bread products to be delivered to a single retail location using two separate trucks. Drivers weren’t allowed to load their own vehicles, and the workers who loaded bread weren’t allowed to load cake. On most delivery routes, another ‘pull up’ employee moved products from back rooms to shelves.”
    –Wall Street Journal, 11/16/12

    http://online.wsj.com/article/SB10001424127887324735104578123312646698662.html

  • Ghost of FA Hayek

    Bill T
    Why not ?
    Then Democrats can take time out from their busy schedules of raising taxes and adding regulations to US companies to blame Republicans for a “trade imbalance” with Mexico.

  • http://www.uncommonsqualor.blogspot.com -Sepp

    “We’d rather lose our jobs than take an 8% paycut”
    -Bakers union member Northwood Ohio yesterday.

    Got your wish didn’t ya?

    His next step will be demanding sympathy because the company that fed his family, payed his housenote, put gas in the car and clothes on his back is now gone because HE “wished” it away.

    His union bretheren who actually DID want to return to work should kick his sorry ass!

    I happen to know 2 members of that union local who would rather be earning than jobless no thanks to that guy and pieces of shit just like him infesting the ranks like headlice.
    Those union “headlice” will be siphoning 2 years of unemployment money…for jobs they’ve killed off themselves…then, onto the welfare rolls full speed ahead!

  • 762×51

    Unions have not been about jobs since before WW II. They are about money and power. The union screwed 18,000 out of jobs so that they could send a message to employers. The fact that they destroyed the lives of people in nearly 20,000 families in the process doesn’t even make the news.

    Remember this the next time some dirty liberal mentions Bain Capaital outsourcing.

  • TED
  • TED
  • TED
  • whotothewhat

    Michael Moore, doesn’t care that Americans have lost there jobs here and that Twinkie’s will become a Mexican import.

    His non union Oompa Loompas will continue to smear him in Twinkie filling every night.

  • Jeff

    Forget for a moment the ‘how many workers do union rules require for X work’, which has always struck me as crazy-making stuff, and think about this: from only ONE quote did an entire article emerge. What if the quote was a misquote, what if the guy misspoke, what if it was $200 a month, not week? You don’t know, I don’t know. I am suggesting that alleging a $130,000 per year paycheck is nuts, as well as you are, but did you do due diligence and check that from at least 10 sources before proclaiming the end of the world as we know it?

  • Pingback: More Union Greed « Benighted Comment

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  • Dr. 9

    Now you can see why the Communist Party of America started the organized labor movement back in the 1920′s. It was to disrupt and destroy the American economy, and it’s doing just that, thanks mostly to the brain-dead dupes, (see: union members) who finance the whole thing without even knowing it.

  • SandyS

    Though I confess to only having eaten two twinkies in my entire lifetime (not my favorite), the positive to this is that Mexican vanilla has a better flavor. May some one resurrect the company and put out a “no union welcome” sign.

  • Son of Taz

    Companies that allowed the unions to become so entrenched in their business must be swept away.

    In the good old days, when Twinkies and Wonder Bread were selling by the millions every day, Hostess was rolling in dough (no pun intended). It was easier to just say yes to the unions rather than face a strike.

    Well, the good old days are over and everything is being streamlined. The unions have had their day and those unlucky enough to be working at Hostess will just have to join the millions who are looking for work. They had a chance to keep their jobs, albeit at a lower wage, but at least it was a job.

    They’ll never learn.

  • KHarn

    “Jeff says:November 23, 2012 at 1:02 pm”

    It’s not OUR job to check up on these things, that’s the job of the NEWS MEDIA. But we all know what a CRAP JOB they have been doing lately, DON’T WE?

  • Ghost of FA Hayek

    Speaking of union work rules, when you have separate officially designated “cake pull up” and “bread pull up” men
    plus trucks with separated product running to the same store
    the handwriting was already on the wall
    http://www.forbes.com/sites/kylesmith/2012/02/15/the-teamsters-union-is-taking-away-our-twinkies/

  • Jester

    Jeffrey says:

    “[Driving] Twinkies around in a truck” is a more legitimate way to earn $130,000 year than most.

    True. But I’m not the only business owner who will tell you that it’s extremely wasteful and therefore unsustainable.

  • AC

    Forget for a moment the ‘how many workers do union rules require for X work’, which has always struck me as crazy-making stuff, and think about this: from only ONE quote did an entire article emerge. What if the quote was a misquote, what if the guy misspoke, what if it was $200 a month, not week? You don’t know, I don’t know. I am suggesting that alleging a $130,000 per year paycheck is nuts, as well as you are, but did you do due diligence and check that from at least 10 sources before proclaiming the end of the world as we know it?

    The WSJ did all that days ago when they published it. There has been no retraction, which surely would have followed if there were any basis to that claim.

  • Sinister66

    Jeff says:

    Pretty good article on this whole hostess debacle. And your right, these drivers dont make anywhere near 130k per year.

    http://online.wsj.com/article/SB10001424052702304177104577312090408358100.html

    http://www.glassdoor.com/Salary/Hostess-Brands-Salaries-E329177.htm

    http://www.indeed.com/salary/Hostess-Brands.html

    The amount of the golden parachutes should be entertaining.

  • U R A SHEEP

    KHarn says:

    “It’s not OUR job to check up on these things”

    So you believe everything your told?
    You are the perfect example of what is wrong with this country. You my friend are a mindless sheep.

  • Bo-Jangles

    “Don’t believe everything you read, only half of what you see, and none of what you hear…” — a wise man

  • AC

    You are the perfect example of what is wrong with this country. You my friend are a mindless sheep.

    What about people who pass a bill to find out what’s in it?

  • U R A SHEEP

    AC says:

    “What about people who pass a bill to find out what’s in it?”

    I would say they are pretty stupid. Dont you have your own opinion on said individuals or are you waiting for someone to give it to you?

    Bo-Jangles says:

    ““Don’t believe everything you read, only half of what you see, and none of what you hear…” — a wise man”

    Perfect.

  • KHarn

    “U R A SHEEP says:November 23, 2012 at 7:02 pm”

    U R An IDIOT:
    I was once so appauled at the local newspaper’s lack of research that I offered to do it for them FOR FREE; yet they turned me down because I was not “a journalist”.

    Now answer the question: haven’t the media done a CRAP JOB of research lately? Or are you waiting for SOMEONE ELSE to answer for you while you post arrogant crap?

  • Ghost of FA Hayek

    Sinister
    I thought the Teamsters were down with the program and it was the Bakers Union bucking the cow

    As long as you are on the subject of class envy;
    http://www.redstate.com/2012/11/21/let-them-eat-cake-as-hostess-workers-get-hurt-bakery-union-bosses-their-kids-do-well/
    Even though his union lost roughly 30% of its membership over the last decade and Frank Hurt condemns the pay cuts and other concessions his members took at Hostess, as the union’s president, Hurt saw his total compensation rise nearly 45%–from $181,840 in 2000 to $262,654 in 2011, according to Department of Labor reports.

    Brass knuckles must not come cheap

    As is the case in other unions, nepotism is something that bakers’ union bosses apparently embrace.

    In addition to the six-figure salaries paid to the union’s executive staff, both Hurt and the union’s secretary-treasurer have their kids working inside the union’s headquarters, pulling down over $71,000 and nearly $49,000, respectively.

  • glorious collective utopia

    Math be rayciss.

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