USA: Earthgrains Company Reports Union Work Stoppage at Fort Payne, Alabama, Bakery

The Earthgrains Company (NYSE: EGR) announced yesterday that it is continuing to operate its Fort Payne, Ala., bakery after members of Bakery, Confectionery, Tobacco Workers and Grain Millers Union Local 611 (BCTGM) went on strike Saturday.Production resumed Sunday after a scheduled down day Saturday. Earthgrains intends to continue to operate necessary production lines in order to serve customers to the best of its ability. Earthgrains will also continue to serve customers using contingency inventory. The bakery makes a wide variety of products for grocery, food service and other customers, including breads, croissants, and snack cakes.Members of BCTGM Local 611, which represents about 74 percent of the plant's more than 900 employees, voted to strike Saturday without considering a contract offer submitted by the company. Union officials refused to accept the company's final offer and did not present the proposal to members for a vote. The Fort Payne contract expired July 30.Earthgrains is committed to reaching a timely, fair and equitable agreement in Fort Payne. Earthgrains is also negotiating other contracts with the BCTGM in the Midwest and in the Southeast. The company has reached agreements for several Midwest contracts and is proceeding with negotiations in the Southeast. Earthgrains has solid working relationships with union locals at its bakeries, depots, and other locations.Earthgrains is the second-largest bread and bakery products producer in the United States, operating 64 bakeries in the South, Southeast, Midwest, Upper Midwest, Southwest and West.Earthgrains also has European bakery operations based in Spain and operates refrigerated-dough businesses in the United States and Europe.