Teamsters Back Interstate Bakeries Bid (Ho Hos, Twinkies)

Source: The Associated Press

KANSAS CITY, Mo. — Supermarket billionaire Ron Burkle's investment firm, Yucaipa Cos., said Friday that it would join Bimbo Bakeries USA and the International Brotherhood of Teamsters in an effort to buy Interstate Bakeries Corp.

Kansas City-based Interstate Bakeries, which filed for bankruptcy protection in September 2004, has already lined up about $400 million in financing from specialty lender Silver Point Finance LLC if or when it emerges from bankruptcy.

However, that deal hinges on the Kansas City-based maker of Hostess Twinkies and Wonder Bread reaching an agreement with the Teamsters, its largest union. The Teamsters have fought the deal, saying health and welfare concessions and changes in the company's distribution system would cost union jobs.

A bankruptcy judge in Kansas City had given Interstate Bakeries and the Teamsters, which represents 9,500 Interstate employees, until Nov. 7 to work out their differences.

Read more: http://www.chron.com/disp/story.mpl/ap/fn/5269346.html

If there's one thing Teamsters will fight for, it's Twinkies and Ho Hos.

(I kid 'cause I love--I'm a union brat :))

... ok, i need more coffee...

From what I understand Interstate took the company into bankruptcy in order to screw the union and break the contracts. I hope this deal goes through for the drivers, bakers and such as those are a lot of good paying jobs that don't need to go the Circuit City route.