Monday, November 19, 2012

To survive a company must profit

Members of the Bakers Union whose refusal to negotiate caused Hostess to cease operating and the loss of 18,500 jobs should have understood that a company must make a profit or go out of business.

Perhaps unions should have learned something from Atwater Kent, inventor of many things automotive and manufacturer of high quality radios.

Atwater Kent began making radios in 1923 and by 1925 was the largest manufacturer of radios in the United States.  The depression was a problem as Kent did not like making low quality radios.  In 1936 union organizers invaded his plant and Kent responded by shutting down his facilities, laying off every worker.

I remember this because we had an Atwater Kent radio and I heard my dad talking about how unions had caused Kent to end his company.

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