Twinkies Maker Hostess Gives Unions ‘Final’ Offer - USATODAY.com
The company that makes Twinkies, Wonder bread and Ding Dongs says it’s making a final offer to workers to accept cost-cutting before it asks a bankruptcy court to impose the cuts.
Hostess Brands Inc. wants the Teamsters and bakers’ unions to accept reduced pension benefits and changes in work rules to lower costs. It wants to outsource some delivery work.
The company said Saturday that if the unions reject the offer, it will push ahead with efforts in bankruptcy court to throw out the unions’ collective bargaining agreements.
Hostess Brands filed for Chapter 11 protection in January, its second trip through bankruptcy court in less than a decade. A trial to decide the fate of the union contracts is scheduled to start Tuesday.
Hostess wants to withdraw from some multi-employer pension plans, although Saturday it opened the door to possibly rejoining a few of the financially strongest plans. New hires would be covered by the same 401(k)-type retirement accounts used by nonunion and management employees.
The company’s new CEO, Gregory F. Rayburn, said Hostess wants to cut annual pension contributions from $103 million to $25 million. Hostess also wants to change work rules that sometimes require two trucks instead of one, and to outsource deliveries to small stores.
The unions have accused Hostess of abusing the bankruptcy process to escape obligations it made to workers who have already sacrificed during two different bankruptcy proceedings.
Union officials did not immediately comment on Saturday’s offer.