The recent collapse of Hostess due to failure of labor talks is a clear indicator of the conflict between the working class and the wealthy class. This company has been in operation for 82 years. It boasts of various exclusive brands such as Ho Hos, Sno Balls and Wonder bread (De La Merced & Greenhouse, 2012). The 18,500 employees who represent the working class passed a message that they have no faith in the company. This is due to what they call unfair practices by them management.
Areas of conflict.
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One is the management decision to reduce labor costs by reducing their wages by 8% and health care contribution. Workers believe that is unfair as the workers are responsible for the profits already made. On the contrary, the wages of chief executive officer tripled to $2.55 million. This represents a 300% increase at a time when the company was not doing well (Hurt, 2012). Further attempts to cut wages in the name of saving the firm from bankruptcy is an abuse of workers’ rights. Labor leaders in Maine believe that there have been efforts by politicians and investors to reduce the powers of labor unions. An attempt by Republicans such as Governor Paul Lepage through state laws to weaken unions is a vivid picture of attempts to reduce their rights (Koenig, 2012). Workers, therefore, refused to resume work as a message to other corporations attempting to imitate what The Hostess management was doing.
Workers also faced threats of winding up the company if they did not resume work by 5.00 on Thursday. This is indicative of how authoritative; the executive is to the working class. The workers have opposed to the inclusion of Wall Street venture capitalists to protect the company (Trumka, 2012). According to the workers, all that they will do is better themselves and leave the workers suffering. Unless there is appropriate legislation to protect the working class, labor wars will remain.
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