While the Hostess Twinkie may not be as central to the U.S. economy as the mail, Postmaster General Patrick Donahoe sees uncomfortable parallels of iconic products within unworkable organizational structures.
"Companies and industries have gone over their own fiscal cliff because they can't sit down and work out their differences," Donahoe said in an interview last week. "Like Hostess."
Like Hostess Brands Inc., where a labor impasse prompted the snack-food maker's liquidation, the Postal Service, with 28 times Hostess's workforce of 18,000, has been squeezed by labor costs and changing consumer tastes to the brink of extinction. The post office's insolvency is less imminent while no less ominous, with Donahoe projecting that the service expects to run out of cash next October without intervention from Congress.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.