
Such a move would make it harder for the company, which has been under bankruptcy protection since September 2004.
"The barn is on fire, but I don’t know if anyone is coming to put it out," Volpe, the union's international director, told The Kansas City Star for a story in today's editions. "If they walk in L.A., they'll spread their picket lines to every facility Interstate has, and knowing the Teamsters, they'll honor the picket lines. I can't speak for the other (unions) but then push comes to shove. Do we let the company burn up? I'm hoping someone gets a little smarter before that happens."
Interstate Bakeries spokeswoman Sandi Sternberg said a work stoppage would only make things worse.
"Any labor activity would only compound the company's problems and reinforce Mr. Volpe's lack of concern for Interstate's employees, many of whom the Teamsters represent," Sternberg said.
Interstate Bakeries has been trying to cut its costs by asking workers for pay and health care concessions as well as streamlining its distribution system, which it says is outdated.
The proposed "path-to-market" plan would separate job functions for many Teamsters who now sell and distribute Wonder bread, Hostess snack cakes and other products. The union has called the proposed distribution plan untested and said it won’t help improve the company's operations.
Volpe said the union's members already have agreed to 4 percent pay cuts and wage freezes. He said the company now wants to cut wages up to 25 percent for half of its workers and require Teamsters to pay a portion of their health care coverage.
Sternberg said the company's new distribution system will save money through increased productivity, not wage cuts. She acknowledged that about 20 percent of the company's positions would see lower wages, but the plan's two- to three-year rollout and annual turnover at 17 percent mean “our current employees would be minimally affected, if at all."
She also said that while the company was seeking $20 million in health and welfare concessions, those cuts could be offset by either redesigning the company’s current health care plans or using consumer plans that offer the same coverage for less money.
Sternberg said the company is aware of the sacrifices its employees have made while the company has tried to survive three years of bankruptcy.
"The fact is, however, that the company remains in Chapter 11 (bankruptcy protection) and lost $113 million in its latest fiscal year ending in June 2007," she said.
Two weeks ago, Interstate Bakeries said it would exit the bread market in Southern California, closing four plants and laying off around 1,300 people. The Teamsters said about 800 of its members will be affected while Interstate said 575 of those eliminated jobs belong to Teamsters.
Volpe also accused Interstate Bakeries of ignoring two potential investors in the company, which he identified as Los Angeles-based investment company Yucaipa and an equity firm affiliated with J.P. Morgan.
The company said in a news release that the potential investors it thinks the union is referring to had asked Interstate Bakeries to provide confidential information, which they then planned to share with the Teamsters "and interject themselves into the negotiating process between the company and unions representing some of its employees."
Interstate said its lenders have told any potential investors they can participate in discussions to restructure the company, but they must agree not to divulge confidential information.
(cjonline.com)