Hostess Nears Teamsters Deal

Gothamist
14, 2012

Hostess, the beloved but bankrupt sweets company, may not have to be liquidated after all. The Post reports that the company, which has been going through bankruptcy proceedings since January, is this close to coming to a deal with its Teamsters. Which might allow them to keep their creditors happy.

Nothing has been signed yet and T's still need to be crossed and I's dotted, but "there are no major sticking points, according to sources." It isn't all great news—workers are going to be asked to take a 5 percent wage cut in the first year, and there will be health-care cuts and lower pension contributions—but jobs will be saved.

As part of the deal, Hostess would be able to sell smaller brands, such as Southeast favorite Merita Bread. Part of the sale proceeds would go to the company and part to pay back the creditors.
In exchange, the company would remain in almost all of the Teamsters’ multi-employer pension plans — a key demand of union officials.
The Teamsters are expected to reach a deal with creditors by week’s end, then spend the next few weeks preparing ballots to distribute to its roughly 8,500 Hostess worker members.

Of course, just because union officials like the deal doesn't mean that workers will. Mexican bakery conglomerate Grupo Bimbo, which has tried to buy out the brand before, already pays its workers more. But right now this is "likely Hostess' last hope." Save the Twinkies!


Be the first to comment

Please check your e-mail for a link to activate your account.
Get Advice Join TDU Donate

Recent News

IMPORTANT DETAILS: TDU Black Leadership Conference

The TDU Black Leadership is coming up!

UPS has 283 million reasons to delay retro pay

Ten weeks. That’s the latest word from IBT Package Director Denis Taylor on how long it will take UPS to issue retro checks–money owed to you–following the April 29 implementation of the contract. Taylor reported to officers and agents at the national grievance panel meeting that retro checks are expected in the first pay period in July. There is no report that Taylor attempted to do anything about the stretching out of “6-8 weeks” to 10-11 weeks.

View More News Posts