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Teamsters Statement On Hostess Brands' Announcement To Cease Operations

Official Statement of Teamsters General Secretary-Treasurer Ken Hall

WASHINGTON, Nov. 16, 2012 /PRNewswire-USNewswire/ -- Today, Teamsters General Secretary-Treasurer Ken Hall made the following statement regarding Hostess' decision to cease production:

(Logo: http://photos.prnewswire.com/prnh/20100127/IBTLOGO)

"We regret to announce that Hostess Brands Inc. has, as a result of the bakery worker's strike, filed liquidation papers this morning. The company has ceased production in all facilities and our 6,700 Hostess members will finish deliveries of the remaining products over the next few days. As the company indicated, it is seeking a hearing in bankruptcy court for Monday, Nov. 19 to approve its motion to liquidate.

"Hostess' problems go back almost a decade. The company has clearly been mismanaged for quite some time. However, the workers should not suffer because of poor management and therefore, the Teamsters Union tried everything in its power during the company's most recent financial difficulties to shape an outcome that would put Hostess on strong footing to be viable and preserve jobs. Unfortunately, the company's operating and financial problems were so severe that it required steep concessions from a variety of stakeholders but not all stakeholders were willing to be constructive. Teamster Hostess members, based on the facts and advice from respected restructuring advisors, understood what was at stake and voted to protect all jobs at Hostess. 

"Our hearts and prayers go out to Teamster Hostess members and all Hostess workers who will lose their jobs. The timing of the closure could not be worse as we enter the holiday season. We will work with our Teamster Local Unions to inform Hostess Teamsters of their rights to receive unemployment.

"The liquidation process will play out in court over the coming months. As we have throughout the bankruptcy we will closely monitor that process to try and ensure that, to the fullest extent possible, Teamster Hostess members are paid what they are owed.  Additionally, we will try to shape the process by looking for buyers of individual assets that may want to employ Teamster members with industry experience. Updates of the liquidation and sale process will continue to be posted on www.teamster.org/hostess."

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. 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

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