Sort of.
The union and Hostess had already agreed to a round of salary cuts and decreased benefits. When the management still "couldn't" make it work that they went nuclear.
If memory serves, there were two unions Hostess was negotiating with. One represented most of Hostess' workers and was negotiating in good faith. The other represented a small percentage of Hostess' workers, and was willing to sacrifice their members at Hostess to gain an advantage in their negotiations with different companies who had more employers.
Arguably, this is a reason unions shouldn't get too big. It creates scenarios where some workers get their interests sacrificed, precisely the thing unions exist to forestall.
That may well be true, but doesn’t really make any point.
Oracle is an awful software company. Does that mean that we should use paper ledgers for corporate accounting?
No, but it might mean you should be careful about proprietary databases.
Which is to say I believe there is a point to be made in there about what can and has happened. And what there is to be cautious of.
This isn't a hypothetical worst-case scenario. I mean, it is a worst-case, but it did actually happen to Hostess.