Approval Provides Potential Path Forward For Bankrupt Hostess
WASHINGTON, Sept. 14, 2012 /PRNewswire-USNewswire/ -- Teamsters working for Hostess Brands Inc. narrowly approved contract modifications that Hostess management and lenders required as a condition to bring the company out of bankruptcy again, the International Brotherhood of Teamsters announced today.
More than 4,400 Teamsters voted in a national mail ballot referendum, with 2,357 voting to approve and 2,043 voting to reject. Ballots were mailed out on Aug. 25 and were tabulated today by an independent election firm, Hartfield Resolution Group.
"This was a difficult decision," said Teamsters General Secretary-Treasurer Ken Hall. "Our members are frustrated at being in the position to bail out the company again, but overall were willing to accept modifications with the hope that Hostess will recover and be in a better position in the years to come. At the end of the day, our members recognized that they can't replace their pay and benefits in the non-union sector."
Hostess Teamsters have already endured two previous rounds of concessions to help bolster the company, which is currently in its second bankruptcy.
Hostess executives now must decide what to do based on today's vote results and those of its other unionized workers, which are expected in the coming days.
"This has been a very difficult and trying year for our members at Hostess and, should the restructuring go forward, we pledge to push and hold Hostess management accountable to create a successful business that provides greater job security for our members," Hall said.
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico, including more than 7,500 delivery drivers and merchandisers at Hostess. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and "like" us on Facebook at www.facebook.com/teamsters.
SOURCE International Brotherhood of Teamsters