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Workers strike at bankrupt Hostess plants

Posted on Monday, November 12th, 2012 at 10:08 pm    

Members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union that work for Hostess Brands Inc. have gone on strike to protest the proposed labor contract presented to them in September as part of Hostess’ restructuring plan under Chapter 11 bankruptcy. The contract would cut wages by eight percent, abolish the eight-hour workday, and change employee pension plans.

According to Bloomberg, the labor contract was rejected by 92 percent of union members. The strike began last Friday at 23 of the Twinkie maker’s 36 plants. However, the company says enough workers are not striking to keep about half of the plants on strike operating. A spokesperson for the company is urging workers to go back to work in order for the plants to stay open.

Hostess warns that if the striking plants do not return to work then it may be forced to shut down those plants and lay off thousands of workers. The president of the union said in a statement that they are striking not just for Hostess employees but for all unionized workers who are protected by collective bargaining agreements. Hostess filed for bankruptcy for the second time in January and listed its liabilities at $1.43 billion.

If your business is forced to cut back due to financial problems, an experienced business bankruptcy attorney can help explain your options and tell you if bankruptcy is right for you.

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