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Monday, November 19, 2012

''Contagion: when unions and employers can’t agree, businesses fail''

From Illinois Policy Institute
By Hilary Gowins

''When unions can’t work with employers in the private sector, companies go under. Hostess Brands Inc. is the most recent case in point, announcing that it will close its doors because of financial insolvency.

Hostess has filed for bankruptcy twice since 2004, most recently this January. The company has an annual revenue of $2 billion, but it also has almost $2 billion in unfunded pension liabilities. Despite this, members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union began striking last week over 8 percent wage cuts.''

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