Hostess' Final Contract Offer Includes 8% Pay Cut
August 22, 2012 | 1 min to read
NEW YORK — Hostess Brands Inc.’s final contract offer to certain union members includes lowering wages and commissions by 8 percent in the first year of a five-year contract. The company is also considering the possible sale of its Merita brand.
In a letter sent to all Hostess workers Monday, President and CEO Gregory Rayburn says that the wage cut would apply to everyone at the Irving, Texas, company, including management.
The offer also includes raising wages by a little more than 3 percent in the second year of the contract and by another percentage point in the fifth year.
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