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Latest News - February 2013

February 22, 2013
Union That Bankrupted Hostess to Receive Generous Government Subsidies
Source: The Foundry
By: Ashe Schow

The union whose strike led to the bankruptcy of Hostess last year has just been awarded government benefits from a program few qualify for.

Last year, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union refused to accept concessions that would have kept Hostess in business. The company had tried to cut costs as it faced high labor expenses, rising ingredient costs, and decreasing sales. The Teamsters union accepted the concessions, but the Bakery union would not, choosing to strike. Unable to continue operating, Hostess filed for bankruptcy.

Now those who helped bring down an American icon will receive generous, taxpayer-funded benefits from the Trade Adjustment Assistance (TAA) program.

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