by Christopher Freeburn | November 12, 2012 1:14 pm
Plans to bring Hostess Brands out of bankruptcy may have encountered a potentially fatal snag. Its unions are now striking, bringing operations to a halt.
Union workers announced a strike after the company imposed a contract that slashed benefits and reduced wages by 8%, ABC News noted.
Company officials said the Twinkies-maker cannot weather a prolonged strike and warned that Hostess was now on the brink of collapse.
The Bakery, Confectionery, Tobacco Workers & Grain Millers International Trade Union denounced the imposed contract and called the strike a effort to protect all unionized workers.
Hostess, which also produces Wonder Bread and Ding Dongs, has been in bankruptcy since January. It’s the second bankruptcy filing for the company, which has $1 billion in debt. In August, senior management warned Hostess’ unions that failure to accept new contracts would lead to the company’s end.
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