KENSINGTON — The labor union that helps Hostess Brands produce the popular treats Twinkies, Ding Dongs, Snoballs and Cupcakes, has overwhelmingly rejected a contract offer, a failure to reach agreement that could jeopardize efforts to bring the company out of bankruptcy.
In January, Hostess Brands filed for bankruptcy for the second time in 10 years due to a $900 million debt load, according to a recent story in the Sacramento Bee.
On Aug. 14, Hostess presented the Bakery, Confection, Tobacco Workers and Grain Millers International Union—located on Connecticut Avenue in Kensington—with a proposal to get the company out of bankruptcy. Yesterday, the union rejected the proposal by a 92 percent margin, the story stated.
In a statement on its website, union President Frank Hurt said, “Our members have seen this company squander more than $50 million that it was contractually obligated to put towards our members’ pension. They have seen the company fail to invest in product development and new plant and equipment as was promised when the company emerged from its previous bankruptcy and for which our members made significant concessions.”
The union seeks the restoration of $50 million in pension contributions and for Hostess Brands to “come to the bargaining table with a fair and reasonable proposal for its workers and a legitimate business plan,” the article said.