Hostess Brands asks to shed union obligations
Posted on January 26, 2012 at 3:00 PM
Updated yesterday at 8:04 AM
NEW YORK (AP) — Hostess Brands Inc., the bankrupt maker of Wonder Bread and Twinkies, has asked a judge to slash some of its commitments to union employees, saying it's the only way it can emerge from bankruptcy as a viable company.
The Teamsters union issued a swift rebuke on Thursday, saying Hostess was trying to "bully" its way out of obligations to its employees.
Hostess filed for bankruptcy protection earlier this month, hobbled by Americans' preference for healthier snacks, and stiff competition from other sweets makers like Entenmann's. The announcement came just three years after Hostess emerged from a previous bankruptcy restructuring.
Unions represent more than three-quarters of Hostess' 19,000 employees, the company said.
Hostess is based in Irving, Texas.