Hostess closes its doors for good.

[Biggs3535]

It's not uncommon for a corporation to move facilities when it feels it can take advantage of a market to reduce labor costs. It can involve a domestic or even an across border relocation.

Because of the nature of the corporation it's in constant search to increase profitability. It's obligation to its stockholders demands that. If that means it will have to do that multiple times then that's what it will do.

When do you think the Unions will catch onto this?

[Durango 95]

Unions have bargained their membership right out of their own jobs in many cases. I'm not attempting to dispute that. Nor do I have the answer.. But at some point it has to be acknowledged this inevitable relocation is a problem that somehow has to be addressed. When you extrapolate this out we have to recognize an almost inherent flaw that will eventually kill the country.

One side points the finger at the union and the other points the finger at the greed of the corporation. At some point, something has to give before it all starts irreversibly crashing down. Assuming it hasn't already.

[spartan]

I don't think relocation is inevitable, and I don't think it is as callous as you make out in most situations, especially with the costs of a modern facility. Just upping and moving on isn't quite as simple as it makes out. I don't discount what you say though because costs eventually can and will drive a relocation if where they are at becomes expensive enough. Look at Caterpillar, but you can't say they haven't tried to stay in Illinois.

[VinBucFan]

That's one side of the argument....here's another.

This is the typical mode of operation for many corporations . Once their employees feel their labor output is greater than their income, they demand more, which at that point, the corporation picks up and moves again. For the company It's just a simple rinse and repeat.

It moves into a starved market w/ the promise of enrichment for all, then when the employees reach a point that they feel they've been taken advantage of,  the company moves again. As long as the corporation has a fiduciary responsibility to the stockholder first this the inevitable result. Then when the corporation exhausts all the domestic markets they begin to "outsource" or move overseas. While continuing to sell their product domestically.

Are you beginning to see a discomforting pattern yet?

LOL  -----   "In 1919, brothers William Howard and Joseph Hampton Flowers opened Flowers Baking Company in Thomasville, Georgia." 

Flowers Foods has always been based in Thomasville, Georgia. Never once feeling the need to "rinse" let alone "repeat."  Shocking when you consider that according your theory they should have moved many times in the past 90+ years. Rinse and repeat.

Try to frame it however you like, but the simple truth is a UNION-LED shop went bankrupt on brands that a NON-UNION shop was willing to pay a fortune for.  TELLING.

[dalbuc]

Well and while low rent jobs like baking twinkies get outsourced to MX or elsewhere other jobs get "insourced" . Car manufacturers from Germany and Japan all have plants here for example. Germans might be griping about jobs going to lost cost Americans. Overall more jobs have been insourced in the last 20 years than outscourced and the jobs that are brought in are typically much higher paying.

[dbucfan]

How odd the car manufacturers don't seem to be bound up by the UAW as their employees haven't accepted the union. 

[VinBucFan]

How odd the car manufacturers don't seem to be bound up by the UAW as their employees haven't accepted the union.

shocking . . 

[VinBucFan]

Hostess definitely shut its doors because no one wants to buy twinkies any more.  Yeah, that's it:

http://www.nbcnews.com/business/twinkie-lovers-can-relax-hostess-sale-imminent-1C8161026

oops

[VinBucFan]

Hostess definitely shut its doors because no one wants to buy twinkies any more.  Yeah, that's it:

http://www.nbcnews.com/business/twinkie-lovers-can-relax-hostess-sale-imminent-1C8161026

oops

Haha, the rest of the brands sell:

http://money.cnn.com/2013/03/12/news/companies/twinkies-buyer/index.html?hpt=hp_t2

yeah, it was the products

[You Mad]

That's one side of the argument....here's another.

This is the typical mode of operation for many corporations . Once their employees feel their labor output is greater than their income, they demand more, which at that point, the corporation picks up and moves again. For the company It's just a simple rinse and repeat.

It moves into a starved market w/ the promise of enrichment for all, then when the employees reach a point that they feel they've been taken advantage of,  the company moves again. As long as the corporation has a fiduciary responsibility to the stockholder first this the inevitable result. Then when the corporation exhausts all the domestic markets they begin to "outsource" or move overseas. While continuing to sell their product domestically.

Are you beginning to see a discomforting pattern yet?

Try to frame it however you like, but the simple truth is a UNION-LED shop went bankrupt on brands that a NON-UNION shop was willing to pay a fortune for.  TELLING.

That's a complete oversimplification of the facts

[VinBucFan]

That's one side of the argument....here's another.

This is the typical mode of operation for many corporations . Once their employees feel their labor output is greater than their income, they demand more, which at that point, the corporation picks up and moves again. For the company It's just a simple rinse and repeat.

It moves into a starved market w/ the promise of enrichment for all, then when the employees reach a point that they feel they've been taken advantage of,  the company moves again. As long as the corporation has a fiduciary responsibility to the stockholder first this the inevitable result. Then when the corporation exhausts all the domestic markets they begin to "outsource" or move overseas. While continuing to sell their product domestically.

Are you beginning to see a discomforting pattern yet?

Try to frame it however you like, but the simple truth is a UNION-LED shop went bankrupt on brands that a NON-UNION shop was willing to pay a fortune for.  TELLING.

That's a complete oversimplification of the facts

By its brevity it's a simplification but it is a fact that the primary financial obstacle to viability was the union rates and benefits. Did the union take a cut to help, yes, but that speaks to the size of the issue. There a reason that one of the primary asset purchasers was a nonunion shop. Others to blame, as there always is, but the union was the huge elephant.