Hostess, unions near deal?
Aug. 15, 2012
by Eric Schroeder
IRVING, TEXAS — The Teamsters, Hostess Brands, Inc.’s biggest union, late last week received a “final” offer to save the embattled baker from liquidation, according to the New York Post.
The Post, citing unnamed sources, said the proposal includes a 5% wage cut in the first year for all Hostess workers, as well as cuts to health care benefits and lower pension contributions. The offer also supposedly includes a provision that would allow Hostess to sell some of its smaller brands, including Merita Bread, with part of the proceeds going to the company and part to pay back creditors, the Post said.
In exchange for the cuts, Hostess would remain in almost all of the Teamsters’ multi-employer pension plans, the Post noted.
In an Aug. 13 posting on its web site, the Teamsters said, “We received a final offer from Hostess Brands Inc. over the weekend and are thoroughly reviewing the details. We are reaching out to local unions and coordinating with them to set up membership meetings in the coming weeks.”
Hostess has not commented on the proposed offer.