Hostess To Cut Wages For Indiana Bakers In Labor Deal

Hostess Brands Inc., the maker of Twinkies and Wonderbread, has received the go-ahead from a U.S. bankruptcy court judge to cut wages for thousands of bakery workers, affecting more than 400 employees in Indiana.

Hostess, based in Irving, Texas, on Wednesday won approval from the U.S. Bankruptcy Court Southern District of New York to impose changes to collective-bargaining agreements for members of the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union.

Changes to the agreements included an 8 percent decrease in wages for the first year of a five-year contract, according to the company.  Wages would rise about 3 percent the following year. The agreements also would include revised health and welfare benefits, and/or employee cost share.

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