The conservative economist in California argues that Hostess's bankruptcy is a classic example of costs created by labor unions that are not confined to paychecks: "The work rules imposed in union contracts required the company that
makes Twinkies, which also makes Wonder Bread, to deliver these two
products to stores in separate trucks. Moreover, truck drivers were not
allowed to load either of these products into their trucks. And the
people who did load Twinkies into trucks were not allowed to load Wonder
Bread, and vice versa. All of this was obviously intended to create more jobs for the
unions' members. But the needless additional costs that these make-work
rules created ended up driving the company into bankruptcy, which can
cost 18,500 jobs. The union is killing the goose that laid the golden
egg."
Thomas Sowell Op-Ed: Killing The Goose
Posted by
Shay Riley
at
11/21/2012
Labels: Employment, Enterprise