Teamsters Outraged by Allegations of Looting at Hostess by Top Executives

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International Brotherhood of Teamsters

Apr 04, 2012, 06:38 ET

Article Reveals Executive Pay 'Skyrocketed' Prior To Bankruptcy Filing

WASHINGTON, April 4, 2012 /PRNewswire-USNewswire/ -- The Teamsters Union expressed outrage today over revelations uncovered by Dow Jones Newswires that Hostess Brands Inc. executives cheated the company and lined their own pockets while at the same time demanding drastic wage and benefit cuts by workers and failing to pay pension obligations during the run-up to bankruptcy.

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"The Dow Jones article suggests that management broke the law, looted the company and then told workers to suck it up and sacrifice," said Ken Hall, General Secretary-Treasurer of the Teamsters Union, which represents more than 7,500 route sales representatives, drivers and other employees at Hostess.

"If this is true, Hostess executives have violated their agreement with the Teamsters that all parties, including management, would share equally in concessions that would help keep this company alive," Hall said.

"It would be outrageous for the board of directors, which included secured lenders, to approve executive salary increases of up to 300 percent for a company that has filed for bankruptcy twice in four years," he said.

The committee representing the company's unsecured creditors, which includes the Teamsters Union, is calling for a formal investigation into Hostess management's potential violation of bankruptcy law.

Founded in 1903, the International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter: @teamsterpower.

SOURCE International Brotherhood of Teamsters