Maybe Hostess didn't innovate or change with the times because they were so constrained with high union wages that there was no money to invest in research and development. Even if its sales were declining and the company decided not to change, the company may have been able to become a smaller company with lower wages or downsize to serve as a niche provider. The union certainly didn't go along with this. The standard operating procedure for unions is to demand more, higher wages and benefits, until the company loses money and goes out of business. Brilliant strategy.