Teamsters Approve but Bakers Reject Hostess Concession Pact

September 14, 2012: Teamsters have narrowly accepted a concession pact put forward by Hostess, but the Bakery Union is overwhelmingly rejecting the deal, after the bakery union president called it a "piece of crap."

The IBT took no position on the contract, but presented it to the Teamster members for a vote: it passed by 2,357 to 2,049.

Meanwhile, 5,000 members in the Bakery, Confectionery, Tobacco and Grain Millers Union reportedly have rejected in at 24 of 25 local votes.

Hostess, maker of Twinkies, Wonder Bread, Ding Dongs and other baked goods, is in bankruptcy and using that process to get concessions.

The proposed contract essentially eliminates Teamster pensions; similar to the YRCW pension concession, the company says it will later re-enter Teamster plans at a 25% contribution rate. Some Teamster plans will not accept that at all, while others will impose a big pension cut.

Will the bakery union end up with a better deal, or will the whole deal go south now? It seems strange that the Teamsters International either didn't know or didn't care what they were going to do.

Click here for an article in the New York Post, "A Half Baked Plan."


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