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Twinkies Seeking To Impose A Deal With Union

Posted on in Bankruptcy Attorney

As posted earlier in our blog, Hostess Brands Inc., the maker of Twinkies, is going through bankruptcy proceedings. The company filed for Chapter 11 in January, and the case is still unresolved. Now the company is trying to impose a contract on a bakery union to keep the company from going out of business. Reuters did a story on the case.

Hostess Brands Inc. is seeking court approval for a new collective bargaining agreement on 6,500 members of a bakery union, only days after the union voted against the deal. Court documents said that Hostess feels that imposing a labor contact which cuts wages by 8 percent and reduces benefits is their last hope for avoiding going out of business.

The labor contract got rejected by 92 percent of The Bakery, Confectionary, Tobacco and Grain Millers International union, the union said.

Gregory Rayburn, Chief Executive for Hostess, stated in a court filing that union members had been misinformed on the matter. Union members were told buyers would save the company from liquidation, Rayburn said. He also accused the union of intimidating members by making the vote public.

Hostess received court approval for a labor agreement earlier, but they decided to continue negotiations, and now they need to seek court approval again, because the contract is not the same as before.

Bankruptcy proceedings can take time and get very complicated, not only for bigger companies, but also for smaller businesses and citizens. If you are thinking of filing for bankruptcy, get a skilled bankruptcy attorney to help you with your case. An experienced bankruptcy attorney knows how to proceed in your situation, and they know all the legal intricacies involved. Our bankruptcy attorneys in Cook County, Illinois can help you with your bankruptcy proceedings. Contact us today.

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