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View Diary: Open thread for night owls: The problem with the return of manufacturing (109 comments)

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  •  Bakers Unions throwing Teamsters under Bus? (3+ / 0-)
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    Jeff Y, ontheleftcoast, Bluehawk

    The Bakery and Confectionery Workers International Union of America (BCTGM) filed the following with the bankruptcy court......

    JOINDER OF THE BAKERY, CONFECTIONERY, TOBACCO WORKERS AND GRAIN MILLERS INTERNATIONAL UNION IN OBJECTIONS TO DEBTORS’ EMERGENCY WINDDOWN MOTION AND MOTION PURUSUANT TO SECTION 1113(e) OF THE BANKRUPTCY CODE

    http://www.bctgm.org/...

    In early summer of 2011, officials of the Company visited with officers of the BCTGM and made a presentation to them. Central to that presentation was the Company’s acknowledgement of what everyone in the baking industry knew; Hostess’ production costs were neither excessive nor out of line with the market but its distribution costs were – to the tune of between $80 million and $130 million annually.
    .....
    Accordingly, when advisors for the BCTGM began meeting with
    Company representatives in the late summer, continuing literally until the day before this chapter 11 filing, they made two things crystal clear: (1) they were prepared to recommend to the BCTGM leadership that it accept concessions if, but only if, the Company (a) marked its distribution costs to market, (b) established a sustainable capital structure, (c) developed a plan for new revenue, and (d) gave meaningful successorship rights to the BCTGM; and (2) it was the BCTGM advisors’ view that if these conditions were not met, BCTGM workers were likely to strike the Company, because they had lost faith in it and believed that liquidation was preferable to the death spiral the Company had created.

    If the Baker's Union allegations are true, this should be investigated.

    Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

    by PatriciaVa on Thu Nov 29, 2012 at 09:05:12 PM PST

    [ Parent ]

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