There was never a chance Hostess would have survived. Romney lost the the election, but the Bain way continues. Anyone who thought there would be any change under Obama is delusional. 18,000 union folks lost their jobs and pensions, just like if Romney had been president.
The point is pensions, and always has been. When Fedex bought Flying Tigers, the merger was about getting Flying Tigers's fully funded pension and matching it with Fedex's under funded pension.
Company pensions are treasury money, meaning the company can do what it wants with the cash. Corp raiders come in and distribute money as they wish and shut it down. they pay themselves as the assets sell off. No pension liability makes the net price higher when selling assets.
Now they mention Hostess products might be made overseas. Why not? They could survive re-entry from outer space, what's a boat ride?
What this means is factories will go idle, and those bakers will not get jobs, even at a lower wage.
This will result in cries for protectionism, to "keep jobs here." That would be a mistake. What we need is to have unions that protect their assets. When some leaders agreed to let the companies run the pensions, and agreed to let pension funds be corporate treasury money, they sold the rank and file down the river.
When the government has a monetary policy that allows big business to avoid tax and launder money by going overseas then we'll get that.
Free trade is crucial to a free country. What is going on with Hostess is not free trade. It is another government policy failure.
What we need is a New Union Movement. And a elimination of government interference in money.
Feel free to forward this by email to three of your friends.
The point is pensions, and always has been. When Fedex bought Flying Tigers, the merger was about getting Flying Tigers's fully funded pension and matching it with Fedex's under funded pension.
Company pensions are treasury money, meaning the company can do what it wants with the cash. Corp raiders come in and distribute money as they wish and shut it down. they pay themselves as the assets sell off. No pension liability makes the net price higher when selling assets.
Now they mention Hostess products might be made overseas. Why not? They could survive re-entry from outer space, what's a boat ride?
What this means is factories will go idle, and those bakers will not get jobs, even at a lower wage.
This will result in cries for protectionism, to "keep jobs here." That would be a mistake. What we need is to have unions that protect their assets. When some leaders agreed to let the companies run the pensions, and agreed to let pension funds be corporate treasury money, they sold the rank and file down the river.
When the government has a monetary policy that allows big business to avoid tax and launder money by going overseas then we'll get that.
Free trade is crucial to a free country. What is going on with Hostess is not free trade. It is another government policy failure.
What we need is a New Union Movement. And a elimination of government interference in money.
Feel free to forward this by email to three of your friends.
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