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No pact yet for Twinkies maker and bakers' union
Source: Agencies |
November 22, 2012, Thursday
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HOSTESS Brands Inc, the maker of Twinkies and other snack cakes, failed to reach a pact with its second-biggest union.
The renewed talks between Hostess and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union came after the company declared last week that it would move to wind down its business and start selling off its assets in bankruptcy court. The company cited a crippling strike that was started on November 9 by the union, which represents 30 percent of Hostess workers.
After making its case to liquidate on Monday, the bankruptcy court judge noted that the two sides hadn't yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences. Both sides agreed to hold mediation proceedings on Tuesday.
In a statement late on Tuesday, Hostess said it would not comment on the breakdown in talks other than to say that mediation "was unsuccessful." A lawyer for the bakers union said he had no comment, citing mediation ground rules.
Hostess shut down its three dozen plants late last week after it said the strike by the bakers union hurt its ability to maintain normal production.
The union says the company's demise was the result of years of mismanagement and that workers have given steep concessions during that time.
Hostess, weighed down by management turmoil, rising labor costs and Americans' changing tastes, is making its second trip through Chapter 11 bankruptcy restructuring. The company, based in Irving, Texas, had brought on CEO Gregory Rayburn as a restructuring expert in part to renegotiate its contracts with its labor unions.
The firm reached a deal with its biggest union, the International Brotherhood of Teamsters, on a contract that sharply cut pension contributions, as well as slashing wages and health benefits. But the company said the bakers union stopped returning its calls about a month ago.
The Teamsters urged the smaller union to hold a secret ballot on whether members wanted to continue striking. Many workers in the bakers union decided to cross picket lines last week but Hostess said it wasn't enough to keep normal operations.
The renewed talks between Hostess and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union came after the company declared last week that it would move to wind down its business and start selling off its assets in bankruptcy court. The company cited a crippling strike that was started on November 9 by the union, which represents 30 percent of Hostess workers.
After making its case to liquidate on Monday, the bankruptcy court judge noted that the two sides hadn't yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences. Both sides agreed to hold mediation proceedings on Tuesday.
In a statement late on Tuesday, Hostess said it would not comment on the breakdown in talks other than to say that mediation "was unsuccessful." A lawyer for the bakers union said he had no comment, citing mediation ground rules.
Hostess shut down its three dozen plants late last week after it said the strike by the bakers union hurt its ability to maintain normal production.
The union says the company's demise was the result of years of mismanagement and that workers have given steep concessions during that time.
Hostess, weighed down by management turmoil, rising labor costs and Americans' changing tastes, is making its second trip through Chapter 11 bankruptcy restructuring. The company, based in Irving, Texas, had brought on CEO Gregory Rayburn as a restructuring expert in part to renegotiate its contracts with its labor unions.
The firm reached a deal with its biggest union, the International Brotherhood of Teamsters, on a contract that sharply cut pension contributions, as well as slashing wages and health benefits. But the company said the bakers union stopped returning its calls about a month ago.
The Teamsters urged the smaller union to hold a secret ballot on whether members wanted to continue striking. Many workers in the bakers union decided to cross picket lines last week but Hostess said it wasn't enough to keep normal operations.
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