Twinkie, Twinkie, little cake
No longer now will you bake.
The salaries were much too high.
The union said pay up or die.
Twinkie, Twinkie, little cake
How much did they think they’d make.

Unfortunately there are over 18,000 workers with nowhere to go on the next regularly scheduled business day and who knows how many investors (you remember investors, they are the ones who actually put up the money) have no next regularly scheduled business.

Nobody wins win you have to strike for money.  You can strike to prevent workers from entering dangerous conditions.  Back when mine workers had to send in birds then wait to see if they died from methane gas exposure there were dangerous conditions one should strike against.  Back when seamstresses were locked in textile mills and not permitted to leave until an arbitrary but always high number of garments were finished regardless of a workers physical condition there were dangerous conditions.  When delivery personnel had to handle unbroken horses pulling unarmored wagons across often violent territory, there were dangerous conditions.

Because a worker wants more money is not a reason to strike.  Everybody wants more money.  Even the President of the United States wants more money but he doesn’t go on strike, he gets another job.  For him it was part time author while he wasn’t busy dong presidential things.  If the bakers at Hostess wanted more money, they could have worked harder.  Instead, they were sold a bill of goods by a union (whose officers and employees still have jobs to go to) that if they paid their union dues the union would get them more money.  We don’t recall ever seeing a news article that a union has offered to reduce their dues for workers who have been asked to work for less than what the union demands.  

As a matter of economics, and recognizing that owners are just as greedy as workers, those who lose the most during union negotiations are, well, everybody.  Take this example.  Let’s say that it takes $100 to build a chair. The chair company has 10 workers and each builds 10 chairs a year.  The workers each get $50 a chair and the company spends $5,000 on salaries.  They also pay $3,000 on health insurance.  Electricity costs $1,000 and the wood, glue, and nails cost $1,000.  That’s $10,000 for that company to build those chairs this year.  The owner who puts up all the money sells each chair for $125.   And he makes $2,500 a year if he sells all 100 chairs.  In year 2, the chair makers go to the owner and ask for 10% more this year raising their salary from $50 per chair to $55 or $550 per worker or $5,500 in total salaries.  The owner asks how many more chairs the workers will make.  No more chairs, just the same 10.  So at the end of the year 2, if the owner sells all 100 chairs he will lose $500 from his previous salary.  Instead of risking that, he’s going to raise his chair prices to $130 to make up the $500 difference.  Across the street at the table factory the workers are demanding more money this year.  Why?  Because the cost of living is going up.  Have you seen how much chairs cost nowadays?

It’s a very simple example but it’s the core problem with unions.  Every time someone gets more, somebody else needs more just to keep up.  All for money.

Someday somebody will buy the trademark and rights to the Twinkie name and the world will be happy again.  Except for those workers who will now want more money because the price of milk just went up.

Now, that’s what we think. Really. How ‘bout you?

(For more of our thoughts on unions, See Union Made, June 18, 2012 in Humor.  Yep, in Humor.)