WASHINGTON (AP) -- The Teamsters Union said Monday that its members at Wonder Bread and Twinkies maker Hostess Brands Inc. have voted to authorize a strike if a bankruptcy judge approves the company's request to cut their health care and pension benefits.
Local unions representing more than 7,500 Hostess workers held strike authorization votes over the past 10 days. A majority of members took part in the vote, with over 90 percent of those voting electing to authorize a strike, the union said.
Hostess had no immediate comment on the union action.
Irving, Texas-based Hostess filed for bankruptcy protection last month, just three years after last emerging from court oversight. The company asked a judge to trim its commitments to workers who are members of the Teamsters union and a bakers union. It said that the cuts would be the only way it can reorganize itself into a viable company.
A hearing on the company's motion is scheduled for March 5.
Hostess said in court filings that its struggles were largely related to its heavy obligations to union workers and retirees. It also said its competitors don't face the same burden. Hostess said that in its previous bankruptcy reorganization, it "did not obtain any substantial relief" from its union obligations.
In all, unions represent more than three-quarters of Hostess' 19,000 employees, the company said.
But the Teamsters have accused Hostess of trying to "misuse the bankruptcy process" to "bully" its way out of its obligations to employees. It said Hostess workers had already "sacrificed greatly" during both bankruptcy proceedings.
3 comments