Judge Rules Hostess Must Maintain Teamsters Union Contract

by Joel R. Glucksman on May 18, 2012

A recent court ruling will prohibit Hostess Brands Inc. from terminating its union contract with the Teamsters, a move that will impact the company’s strategy for emerging from its second bankruptcy.

Since the company filed for bankruptcy protection in January, Hostess and the Teamsters have been unable to reach a consensus regarding a pre-bankruptcy collective bargaining agreement. The company has been attempting to resolve its collective bargaining agreements as a cost-cutting measure to avoid liquidation.