July 16, 2013

The new owners of Hostess have leaner operating costs now that they're no longer using unionized workers.

Now we understand why they killed the company then brought it back. To get rid of people earning a LIVING WAGE and replacing them with slave-wages. Shut the company down; fire everybody; restart company; keep union out. Bingo. You are making more money than ever and the same workers now have to contend with wages that cannot ever support a minimal life, EVER. And this is how it is done these days.

Source

1 comment:

  1. f Hostess had Controlled Operating Costs rather than cutting costs they wouldn't have had to do that

    Their goal should have been to achieve the same or even better results at a lower cost. Anyone can cut costs and achieve lower results. They needed more than that though.

    Most CFOs expect their costs will go up in the future, but they don’t know by how much or when. There are steps every business owner can take to keep future costs under control. The key is to contain those costs now, not cut them later.

    Cost containment is very different from cost cutting. Cost containment involves controlling increases in costs before they occur. It’s a way of limiting future risk.

    TIP!< Some Cost Containment Companies will do a line-by-line itemization of all operating costs in scope. They are experts in that area and can often do this much more efficiently that doing it in house

    Cost cutting, on the other hand, is what happens in the absence of cost containment. It forces business owners into a position of saving money after the fact. Sometimes, it’s necessary as a short-term solution; however, businesses cannot operate on a long-term basis in cost-cutting mode. Therefore, it’s critical for business owners to have a day-to-day, ongoing mentality of cost containment.

    Cost containment strategies can be applied to small companies just as easily as large companies, in reducing operating costs because they involve the same two groups of people: employees and vendors.

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