Bankruptcy Judge Denies Hostess' Motion To Reject Teamster Contracts

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International Brotherhood of Teamsters

May 15, 2012, 11:08 ET

Teamsters Union Proves It Had Good Cause To Fight Company Terms

WASHINGTON, May 15, 2012 /PRNewswire-USNewswire/ -- In a victory for Hostess workers, U.S. Bankruptcy Judge Robert Drain issued an oral decision Monday night denying Hostess Brands Inc's motion to reject all Teamster labor contracts, meaning that all contracts with Teamster local unions remain in effect.

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"We told our Hostess members all along that we would vigorously oppose the imposition of unjust working conditions since Hostess first filed bankruptcy and we have done just that," said Teamsters General Secretary-Treasurer Ken Hall. "It's a rare day when a bankruptcy judge denies a company's request to reject its union contracts, and I attribute it to the resolve of our members and the team we assembled to fight the company's 1113 motion.

"The judge specifically noted that the union and its advisers had accurately identified the company's operational and business issues and were highly knowledgeable about the company.

"While we agree with most of Judge Drain's ruling, we recognize that it doesn't solve Hostess' problems. Unfortunately we've been bogged down in this legal process instead of trying to reach a resolution that all parties could support. We remain committed to finding a solution and urge the company and its lenders to do the same."

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico, including more than 7,500 delivery drivers and merchandisers at Hostess. Visit www.teamster.org for more information. Follow us on Twitter @TeamsterPower.

SOURCE International Brotherhood of Teamsters