Hostess Brands asks to shed union obligations
Associated Press
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.
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