Daily News: August 30, 2012

Hostess Needs Union Approval to Emerge From Bankruptcy

Hostess Brands has offered its union workers a new proposal in an effort to try to emerge from bankruptcy protection, an InvestorPlace Media article said.

The new proposal offers the unions 25% of its equity and two seats on the board for cuts to wages and benefits and changes to working rules, the article noted. The cuts to wages would be 8% this year, but would increase 3% next year. Workers would have to make additional contributions to their health insurance and pension plans contributions will be suspended until 2015.

The company’s creditors have already approved the new proposal. The unions have two months to vote on the plan. If they do not sign off on it, the company said it would have to liquidate.

To read the article in its entirety, click here.

Previously on abfjournal.com:

Teamsters Remain Committed to Reaching Fair Agreement With Hostess, Monday, April 23, 2012