IBJNews

Hostess to cut wages for Indiana bakers in labor deal

Back to TopCommentsE-mailPrintBookmark and Share

Hostess Brands Inc., the maker of Twinkies and Wonderbread, has received the go-ahead from a U.S. bankruptcy court judge to cut wages for thousands of bakery workers, affecting more than 400 employees in Indiana.

Hostess, based in Irving, Texas, on Wednesday won approval from the U.S. Bankruptcy Court Southern District of New York to impose changes to collective-bargaining agreements for members of the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union.

Changes to the agreements included an 8 percent decrease in wages for the first year of a five-year contract, according to the company.  Wages would rise about 3 percent the following year. The agreements also would include revised health and welfare benefits, and/or employee cost share.

Hostess filed for Chapter 11 bankruptcy reorganization in January. It argued to the bankruptcy court that cutting wages for all workers—including the BCTGM members—was the only way to avoid going out of business.

Members of the International Brotherhood of Teamsters had ratified similar changes to their collective bargaining agreement with Hostess in September. BCTGM members voted to reject the company’s proposed concessions, leading to the court action.

Hostess employs 874 workers in Indiana, 436 of which are members in the BCTGM union, according to Hostess spokesman Erik Halvorson. The firm employs 288 workers in its Indianapolis bakery, of which 212 are BCTGM members.

In a letter to Hostess workers dated Aug. 20, Rayburn emphasized that all employees—including management—would be subject to the pay cuts absorbed by union members.

“With lower costs, we can attract the financing we need to exit Chapter 11, invest in our operations and create a company with a sustainable long-term future,” Rayburn said.

Hostess was founded in 1930 and has annual revenue of more than $2 billion. It employs about 18,500 workers, which operate 36 bakeries and 570 bakery retail outlets nationwide.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

ADVERTISEMENT