https://www.qchron.com/qboro/i_have_oft ... a4ea2.htmlFor Christmas 1974 the Teamsters union wanted a 10 percent commission on bread delivered to non-union stores and supermarkets in ’75. Silvercup had an exclusive three-year contract with the city Board of Education and could not raise prices after Nixon sold grain to Russia and prices here doubled. The city was also in a recession.
Silvercup countered with an offer of 2 percent to the union. The Teamsters stood firm on their 10 percent and threatened to strike. Silvercup said if you do we will shut down the factory. The union laughed and said you can’t because you just bought a new fleet of trucks.
The workers went on strike and the factory closed its doors. Silvercup sold off the new trucks and ovens, as well as whatever else it could sell for salvage. It owed the IRS $500,000 in withholding taxes and another $500,000 in pension funds; 600 people lost their jobs.
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Ah, Silvercup. A true union success story!
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Never the union's fault.
Did other bread companies go out of business for the same reason?
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