Anyway, why GM and not Hostess? The Troubled Asset Relief Program, aka TARP, was passed to rescue financial institutions. But Washington reasoned: “What's legality among cronies?” So soon TARP was succoring GM, which was not a financial institution. It was not even a car company. It was a health care provider unsuccessfully trying to sell cars fast enough to generate enough revenue to pay health benefits for its employees and approximately twice as many retirees.
Hostess had in its far-flung operations 372 collective bargaining agreements with various unions that had sought and received — shed no tears for complicit management — some interesting benefits. The Teamsters liked the rule that bread and pastries might be going to the same place but must go in different trucks.
The bakers rejected management's final offer by a voice vote. The Teamsters, who favored a compromise, wanted there to be a secret ballot. This is insouciant insolence by the Teamsters, who are situational ethicists. In Washington, operating from impressive headquarters located on prime real estate at the foot of Capitol Hill, the union's leadership has lobbied Congress for the Employee Free Choice Act. That is the Orwellian title of legislation that would effectively abolish employees' right to secret ballots in unionization elections, replacing them with “card check,” whereby individuals confronted by union organizers sign a card indicating support for the union.
The market said that Hostess as configured made no sense. If, however, Twinkies and perhaps other Hostess brands retain value, the market will say so, and someone will produce them. Probably in a right-to-work state, which is how “entrepreneurial federalism” (another Boorstin phrase) should work: Business moves to states that make it welcome.
Whatever else a hospital ought to do, supposedly said Florence Nightingale, it ought not to spread disease. And whatever else unions should do, they should not put employers out of business.
George Will's email address is email@example.com.
WASHINGTON POST WRITERS GROUP