News Summary: Wage cuts in final Hostess offer

AP News
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Posted: Aug 20, 2012 2:12 PM

WAGE CUTS: 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 sale of its Merita brand.

THE BANKRUPTCY: In a letter sent to all Hostess workers Monday, President and CEO Gregory Rayburn says the offer would allow Hostess to reduce operating costs and help attract financing needed to exit Chapter 11 bankruptcy protection.

UNION RESPONSE: The International Brotherhood of Teamsters had no further comment beyond what it said last week, when it told members that rejecting the offer could mean losing their jobs.