The unions agreed to major concessions during the Hostess' first bankruptcy. A receiving clerk that was making $48,000 a year before the concessions, had his pay cut to $34,000. How would you feel if someone cut your pay by $14,000?
Hostess had been in decline for years. They tried to offer products to meet the changing needs of the consumer, but their efforts failed. They couldn't adapt to the market place.
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