Hostess Shuts Down Three Bakeries After Workers Strike

By aaroncynic in News on Nov 13, 2012 9:20PM

Hostess Brands, Inc. plans to close three bakeries in St. Louis, Seattle and Cincinnati after members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike last week. Crain’s Chicago Business reports union members decided to strike after the company demanded the union to accept a contract which would reduce pension benefits, outsource deliveries, cut pay by 8 percent and change other work rule changes. According to the Huffington Post, the union authorized the strike in February, vowing to walk the picket line at the time if a bankruptcy judge agreed to the company’s terms. Hostess filed for Chapter 11 bankruptcy in February.

On Monday, a spokesperson for the union told the St. Louis Post Dispatch that 23 out of Hostess’ 36 plants had picket lines. Half of those still went on to produce and deliver product. The company has said the strike would not affect consumers, but earlier this month said a strike could lead to bakery closures. CEO Gregory F. Rayburn said in a press release:

“We deeply regret this decision, but we have repeatedly explained that we will close facilities that are no longer able to produce and deliver products because of a work stoppage — and that we will close the entire company if widespread strikes cripple our business.”