Members of the International Brotherhood of Teamsters have approved changes to a contract with Interstate Bakeries (IBC) in a bid to save the bankrupt US baker from being sold off.
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The 9,000 members voted to accept modifications of their agreements with Interstate Bakeries by an “overwhelming majority”, the union said yesterday (13 November).
Teamsters said the deal was the “culmination” of its efforts to “find an appropriate financial partner” for IBC that was committed to bringing the company out of bankruptcy and preserving jobs.
“IBC Teamsters were faced with a difficult decision and they voted loud and clear to preserve good American jobs at Interstate Brands Corporation,” said Teamsters general president Jim Hoffa. “The newly-ratified agreement paves the way for the company to exit bankruptcy as a stand-alone entity which is the best opportunity for our members to keep their jobs.”
Ripplewood Holdings and Teamsters reached a tentative labour agreement in September that enabled Ripplewood to line up financing with Silver Point Capital and present IBC management and other stakeholders with a plan to bring IBC out of bankruptcy.
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By GlobalDataThe result of the labour agreements clears the way for IBC to exit bankruptcy as early as next month and no later than February 2009.
“Our members knew this agreement was, by far, the best choice in order to provide IBC with a sound financial footing,” said Richard Volpe, director of the Teamsters Bakery and Laundry Conference. “During negotiations our priority was to protect Teamster jobs, achieve value for our sacrifices and put the company in the best position to grow.
“We have confidence in Ripplewood Holdings and believe that we can work together with the new management team at IBC so that it may survive and rebuild.”
Officials at IBC could not be reached for immediate comment when just-food went to press.
