First, it was widely reported that the Baker's union would rather lose their jobs than concede more pay and benefit cuts. And, while this seems like a "cut off your nose" moment, it has to be viewed in the context that the present CEO and past CEO's and the management team have payed themselves more than the profit margins would allow. And, that bankrupting the company would provide more money to the departing leadership of the company.
But, there is a more serious problem and that is Hostess failed to change any of its products as the consumer needs changed. The idea that you could continue to sell overly sweet products with virtually no nutritional value seems ludicrous at best. It reminds me of the Post Office failing to re-tool when they realized that email would be a serious threat to their business. The trend, as I see it, is that companies that are inflexible and work only to satisfy investors will fail, whether unions shops or not.
On a lighter Twinkies note, Rice University began the T.W.I.N.K.I.E.S project in 1995 to subject the product to some very bizarre tests. You can see the results here.
Meanwhile, I will be thinking about the 18,000 displaced employees who now have to face the changing world of commerce with an uncertain future... Ken