Monday, November 19, 2012

Twinkie math: 80 percent of something is better than 100 percent of nothing

During the time I worked in my dad's store, I sold a lot of Hostess Twinkies. I'm proud to say that in eight years I never ate a single one of those things. For one, they were sickeningly sweet. But we also sold TastyKakes, which any kid from Philly knows is an off-the-charts great sugar fix.

So when the news broke that the Hostess Twinkie was gone forever, it didn't bother me a lick. If, for instance, news had broken that Ghirardelli was going to stop making chocolate, I'd simply check myself into an institution as a pre-emptive measure for the withdrawal that would be sure to come.

But I did feel bad for the 18,500 workers who lost their jobs. Once again, management and labor can't agree, nobody will budge, and everyone loses. I dare say a lot of those people would rather have a pay cut than no salary at all. Down the road someone will buy the company and relocate it to a place where they don't have to deal with unions, and 18,500 other people will have jobs cranking out junk food.

It's a great illustration of bargaining power in the current economy. If you're one of those people who faces a pay cut to keep your job, or you're thinking about playing hardball in your next contract negotiation, take a walk through the grocery story and look for a box of Twinkies. That could be you. You could be gone.

And if you're a long time "one market anchor" and think you can get a better deal elsewhere, you're really in for a shock. You may have been a big hit in one market because you've simply been there forever, but you're nobody in another market. New employers don't care if the people in Palookaville still like you, because you won't be in Palookaville anymore.

Think long and hard before playing hardball in any negotiation. Because unlike the managers who ran the Twinkie factory, broadcasting managers can always find someone else who will be thrilled to take your job at the salary you don't want.

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