December 2, 2007: Ron Burkle says he has an “exclusive” agreement with the Teamsters for concessions at Interstate Bakeries Corp (IBC). But the billionaire investor and our top officials aren’t telling the details.
On Nov. 30, a federal bankruptcy judge denied IBC management’s request for the details of Burkle’s secret deal with the Teamsters.
Over 9,500 Teamsters deliver Hostess Twinkies, Wonder Bread, and other products for the bakery. The Teamsters agreed to concessions when the company first went into bankruptcy in 2004. Now the current management says it needs even more cuts.
The IBT announced in early November that Yucaipa, an investment firm led by Burkle, and Bimbo Bakeries, a bakery based in Mexico, are moving to take over IBC with the help of the Teamsters.
Current IBC management wants to cut wages, force drivers to pay $20 a week for healthcare, and implement a “path to market” distribution system that could eliminate many Teamster jobs and change work rules.
Teamster Bakery Director Rich Volpe has admitted that Yucaipa will ask for concessions in the current Teamster contracts—but no one is saying what these cuts will be.
November 8, 2007: Interstate Bakeries Corp. appears headed toward the final chapter of its reorganization with the approval Wednesday of $400 million in post-bankruptcy financing.
The approval also sets the stage for an auction of the company.
The financing plan from Silver Point Finance LLC set a so-called enterprise value of $580 million for IBC, when debt and equity to creditors are factored in. Interstate contends that that value sets a floor for other parties to bid on the company, whose products include Wonder bread and Hostess Twinkies.
Click here to read the full article in the Kansas City Star.
November 5, 2007: Our union is teaming up again with billionaire investor Ron Burkle to take over a bankrupt Teamster employer, Interstate Bakeries Corporation, the maker of Twinkies.
The IBT announced on Nov. 2 that Yucaipa, an investment firm led by Burkle, and Bimbo Bakeries are moving to take over IBC.
The current IBC management wants to cut the wages of Teamster drivers, and demanding that Teamsters pay $20 a week for healthcare. The company also wants to implement a “path to market” distribution system that could eliminate many Teamster jobs and change work rules.
Last week Yucaipa and Bimbo (a Mexico-based corporation) filed a motion in bankruptcy court to remove the current IBC management.
Teamster Bakery Director Rich Volpe has stated that Yucaipa will ask for concessions in the current Teamster contracts, but that these will smaller than what IBC is currently seeking.
Yucaipa got 17.5 percent wage cuts from Teamster carhaulers at Allied earlier this year after Burkle took over ownership of Allied, in a deal with the IBT.