Hostess Brands Inc. went out of business in November after being "saddled with high pension, wage and medical costs related to its unionized workforce." But have no fear, the taxpayer is here! The United States Department of Labor has stepped in to help the union workers with "Trade Adjustment Assistance."
Back in November, Candice Choi and Tom Murphy of My FOX dfw reported that the combination of "intensifying" competition, in addition to "a long battle with its unions," was too much for the iconic maker of Twinkies and they were forced to close their doors. One would think that instead of holding out for more pay, the unionized employees would have either agreed to terms for the good of the future of their firm, or sought employment elsewhere. Bakery union boss Frank Hurt released a statement at the time acknowledging that by going on strike, the union workers "were well aware of the potential consequences of their actions but stood strong for dignity, justice and respect." This move cost them their jobs and in the process, an American company was forced to shut down; a company with brands dating back to 1888. A statement made by AFL-CIO President Richard Trumka, not surprisingly, blamed "Bain-style Wall Street vultures."
However, the taxpayer will rescue these workers with what Warner Todd Huston of Liberty News refers to as a "union payoff with our tax dollars." Huston reports that the U.S. Department of Labor "has designated more than 18,000 former Hostess employees as eligible for 'Trade Adjustment Assistance.'" He weaves a must-read tale of how this move was justified. Trade Adjustment Assistance is compensation that "provides support to those workers who lost their jobs due to foreign trade," as reported by WCSH6.
In a recession in particular, the move by the unions was clearly irresponsible and as a result, thousand of people were laid off. As usual, America is footing the bill and the mainstream media is silent.
Image Source: Red State