The Hostess Company Folds: Government in bed with communist labor unions

The unions in America have had it all wrong from day one. When Andrew Carnegie had to endure one of the first labor strikes from a worker’s union in one of his Pittsburg steel plants, he was guilty of working his employees too long, too often in a bloodthirsty quest to compete with J.D. Rockefeller in Cleveland as the richest man in The United States. In business, competition is what drives the flow of money, and between Rockefeller and Carnegie there was a brutal competition between the two men that almost single-handedly ushered America into the modern age with innovation and wealth. Billions of people world-wide benefited directly from the ruthless competition between those two men. But Carnegie had crossed the line pushing his workers too hard. This caused the desperate workers to look toward the fairly recent writings of Karl Marx for a solution in much the same way that the Bolsheviks roughly 20 years later would use Marx to overthrow the bourgeoisie class in Petrograd under the banner, “workers of the world unite!” The steel workers at Carnegie’s Pittsburg steel mill went on strike and took possession of the plant which was their mistake. They had a right to walk off the job leaving the task to new workers to fill, but they did not have the right to take possession of the plant, believing themselves inaccurately to be equal owners in the company’s assets simply because they were employed at the plant.

Carnegie owned the mill as the workers simply sold their labor to him for a price. If the workers did not like the price, or thought they could do a better job, under capitalism they have the right to walk away from the job and go into direct competition with Carnegie if they wished. But under socialism—which the labor unions functioned under then, and to this very day—they believed they were equal partners with ownership in the companies they worked for simply because they showed up for work. Carnegie’s response to the labor strike was to call in the Pinkerton boys.

Allan Pinkerton (1819-84), was a Scottish-American detective. Born in Glasgow, Scotland, Pinkerton came to the United States and settled near Chicago in 1842. While engaged in business as a barrel maker in 1846, he captured a gang of counterfeiters and was consequently elected county sheriff. In 1850 he organized Pinkerton’s National Detective Agency and was appointed the first city detective in Chicago. The recovery of a large sum of money stolen from the Adams Express Company and the discovery of a plot to murder Abraham Lincoln in 1861 made his reputation. During the American Civil War he organized the secret service of the U.S. Army. During the railroad strikes of 1877, his agency provided strikebreakers. His books include Strikers, Communists and Tramps (1878) and Thirty Years a Detective (1884). After the Civil War Pinkerton put together a band of mercenaries who would go around the country for hire and attack unions who attempted to seize American businesses. Carnegie hired Pinkerton to break up the strike at his Pittsburg steel plant where the workers barricaded themselves across the entrance. Pinkerton in defense of Carnegie’s ownership of the plant gunned down the workers to break the strike and retake possession of the plant from the theft induced by the labor union.

Eventually over the next 100 years labor unions would embed themselves into many companies and would stop work in an attempt to extort more pay and benefits from corporate owners with the threat of violence under the banner of communism. Government climbed into bed with the communist movement migrating through American capitalism and made such actions as Carnegie utilized by hiring Pinkerton illegal—which allowed communism to mix with American capitalism in a contentious century long stand-off. The result has been the decimation of the steel industry, that started in America, the destruction of the car industry, which has been artificially propped up by government to prevent the inevitable bankruptcy imposed by the auto worker legacy costs, and a destructive spread of organized labor into government positions such as firefighters, cops and teachers—fulfilling the undercurrent strategy of the communists all along to attack private property in America by taxing it to fund those infrastructure government labor jobs excessively. Even though Carnegie pushed his workers over the edge with poor wages and intense hours—his workers did not have the right to take his property. Labor unions function in modern times with the same foolish belief, that it is they who own part of a company simply because they are employed.

We see the same things happening today. Witness the statement provided by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that was supporting the strike of its members against the Hostess Company and witnesses their response to the demand by management that they report to work on Thursday November 15th. “Our members decided they were not going to take any more abuse from a company they have given so much to for so many years. They decided that they were not going to agree to another round of outrageous wage and benefit cuts and give up their pension only to see yet another management team fail and Wall Street vulture capitalists and ‘restructuring specialists’ walk away with untold millions of dollars.”

The strikers are functioning communists whether they know it or not by definition. FOR FURTHER PROOF OF THIS HISTORY, CLICK HERE. The Hostess Company had to figure out where they could afford to operate as a company as the marketplace had changed for their products over the years and their legacy costs had made their profit forecast impractical. The strikers believe that the owners of Hostess should take all the risk of providing jobs, and shoulder all the responsibility involved without having the opportunity to become wealthy. They believed that the wealth created by Hostess should be shared equally, which is absolutely incorrect. Such a belief is clearly outlined in their statement to Hostess management.

Communists have always made war against what they perceive to be the bourgeoisie class (owners) against the proletariat (workers). In fact, President Obama made his entire re-election campaign based on this labor argument, hoping to stir up the communist seeds that had been planted in America by labor unions for over a century. This is why Obama is viewed as a socialist and outright communist advocate. Communism is the antithesis of capitalism—and America became the wealthiest country on Earth because of capitalism.
Hostess is now out of business because the labor unions crushed the company with demands by the workers that the company could not provide. As I write this, labor unions are trying yet again to infiltrate the retail giant Wal-Mart on Black Friday with a worker walkout right in the middle of the busiest time of year, intentionally hurting the employer at a critical time. Wal-Mart knows that if they allow unions to break through their management ranks, the company will never survive. Wal-Mart must fight off union take-over constantly to allow them to continue to do what has made them successful, and that’s provide many retail items at a low price to consumers. Once organized labor gains the ability to shut down production, or shopping hours with labor stoppage, customers will turn away from Wal-Mart and go to Target or some other retailer that does not have radical workers harassing them at the front door. People shop at Wal-Mart because they want to purchase items cheaply, and without hassle. If Wal-Mart cannot provide that, then their company, like Hostess, will be over.

What happened to Hostess has already happened to countless steel mills, and many traditional American businesses. It is because of labor unions that businesses have moved overseas and taken their jobs with them. In America, government has sided with labor unions, not American business—unless that business sends a lobbyist to Washington. With the help of labor unions, congressman and senators have learned that they can make capitalism in America be a “pay-to-play” sport, just like many public schools are doing these days when they don’t get their extortive school levies passed. Ten years ago Fidelity did not have a lobbyist in Washington. Today they do. Microsoft in the 90’s learned the cost of not having a “man in Washington.” They were sued by the government for being a monopoly—because they didn’t have someone greasing the wheels. Today they do. Labor unions today work with government to shake down American companies for everything they can and at a certain point, when the profit just isn’t worth it any longer, the companies just sell, move to a less hostile environment, or just go into bankruptcy like Hostess is doing now taking with it foods that we all know and love.

The labor unions are functioning under a communist philosophy intended all along by the writings of Karl Marx to destroy the wealthiest country on the face of the planet with a slow bleeding attack on capitalism. The government got into bed with labor unions by making actions like Pinkerton illegal. Companies can no longer defend their property from communist insurrections—but instead must call in a federal mediator who is almost always on the side of big labor—unless the company can hire an army of lawyers to do through the government court system what the Pinkerton’s did with a gun—and destroy the lives of the attackers.

Either way the looting government employees make their way off into comfortable retirements and island condominiums as they profit off the battles of communist labor unions and capitalist corporations. The sad thing about the whole mess is that nobody gave a damn until they learned they might not be able to buy Twinkies any longer at their local grocer. But believe me—Hostess is just the tip of the iceberg. Hundreds of similar companies are in the same boat, and if parasitic labor unions are allowed to destroy them, they will all be gone soon—and in London, England from his ratty grave, Karl Marx is laughing at the havoc he reeked upon the world with the most corrosive economic theory ever devised—one that would ultimately stop the economic engine of America so slowly that the people wouldn’t even realize it had happened, until they lost something they deeply treasured, like the Hostess Company, and the snack cakes that came to define entire generations.

Rich Hoffman

www.tailofthedragonbook.com

  

15 thoughts on “The Hostess Company Folds: Government in bed with communist labor unions

  1. Rich, your recent posts have been some of the best ever.
    Thank you! I’m off my Ho Ho and vodka binge and able to type again. Only slightly among the living though.

    Take a look at the top brass salaries for this union. (1st top 15 or so)
    http://www.unionfacts.com/local/employees/315/BCTGMI/0/

    I was reading on Breitbart that many are glad to be finished with the union, even though the workers that fired the final shot in the heart of the co. are only a fraction.
    I wonder if their compensation is different for unemployment than those of the private. excluding bennies.

    There will be tons more crap to come. The unions pushed him into a second term and he owes them BIG! He’ll pay too. Starting with card check.

    Unions….all unions…..SUCK.
    Teachers union being the top offender…however I’m sure those in Detroit believe it to be the UAW. They’re a close second with SEIU

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  2. The most serious union problem is with the public sector unions. There is an inherent conflict between serving the public and unionizing to extraxt wages and benefits from the public. Even the great socialist president, FDR, recognized the conflict of interest and opposed public sector unions (which now are stooges of the democrat party). It is not possible for any democrat to negotiate a contract for public services in the interest of the public at large.

    The greatest tragedy is in the area of public education where the teachers union have effectively destroyed the value of a public education in virtually every large and medium sized city. These unionized teachers are without a conscience because being on the front lines of disaster they are more interested in expanding their freebies than educating the children. The only solution is vouchers, a solution that will be fought to the death by the teachers unions.

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    1. The best way to deal with it is to let the moocher class know what will result from their killing of the goose that laid the golden egg. The producers will have to go dark to demonstrate that freedom is what drives national and personal success, not using the government as a thief.

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      1. You are unfortunately all too right. I just hope that the producers do not go to sleep forever. It takes a special kind of person to make something from nothing and it is a skill that can be lost to time. It takes another kind of person who can do the daily grind of working. I’ve done both and it is harder to create. It’s easy to clock in and sell labor and go home without a worry at the end of a day. It is hard to shoulder the responsibility of carrying everything on your shoulders. That is why the unions are out of their mind wrong. They do not deserve collective bargaining and they are not equal to the producer. They can pick up and leave where the creator is stuck with their creation for all time.

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  3. Um, why does this have no discussion of how horrendously management f’cked up in this situation by giving themselves all between 60-300% raises when the company was already soaked with debt?

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    1. Because it is irrelevant. It is the ownership and managements job to operate the company, not the employees. Collective bargaining is a destructive enterprise. Think of it like everyone in a car trying to drive that car. Everyone wanting to turn in different directions. It doesn’t work, yet that is what collective bargaining does. It is the drivers job to drive the car, and that is management. If the driver crashes and kills all in the car by their mistake that is very sad, but the responsibility for driving the car is the driver, not the passengers. If you think the management is bad and is going to wreck the car, then get out of it and find some other car to carry you around. That is the choice, and luxury of the employee. It may not pay the same, but it gives more freedom of movement than those in management who take all the hard risks.

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      1. Ok, let’s get something out of the way first: collective bargaining inevitably exists in the free market since we all pursue self-interest, and the employees of a company like Hostess share common individual self-interests. It doesn’t matter if collective bargaining is “destructive” because it is going to exist in the free market no matter what, minus a concerted effort by the government to destroy union labor. Public sector unions are a different issue

        A large part of why Hostess failed is because they have not adapted to the marketplace and their staple products have lost popularity. That is not anyone’s fault but the better judgment of the American people. The company carried a lot of debt but whether or not debt or union contracts was the main issue is not really what’s important to me. Management was trying to cut Bakers’ pay by 8%, benefits by 32% at the same time that the CEO gave himself a 300% raise and nine other executives received 60-100% raises and they owed $160M to the employees’ pension. I want to know what kind of management team looks at their company, sees how terrible of a condition its in and undertakes such venal measures at the expense of the employees and then expects people to believe that the union destroyed the company. Anyways, apparently the employees would rather let management be the victims of their own decisions than continue with the company. The free market at work.

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      2. That’s a reasonable response. I would bet that the employees saw the writing on the wall and probably should have stepped out of the car at a stop sign–since the driver was apparently drunk. The driver too (management) knew the condition of the car was bad so they drank more to forget about it making the situation worse for everyone. The CEO and key management knew the bankruptcy portion would be painful and an insult to their leadership so they padded their pockets for the exit while the decision was still theirs. The employees who lost their jobs will find other jobs if they want them. But the CEO and management might have more difficult time. After all who wants to hire a management team from Hostess that ran the company into a tree?

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  4. Honestly, I think the move was probably more symbolically damaging than anything else and may have poisoned the well in a way that might not have happened if management didn’t appear to be blatantly shafting the employees. Anyways, I am glad we can find some room for agreement on this issue.

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