Wage cuts in final Hostess offer; may sell Merita

AP News
Posted: Aug 20, 2012 1:51 PM

NEW YORK (AP) — 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 on Monday, President and CEO Gregory Rayburn says the final offer will allow Hostess to reduce operating costs and help attract the financing needed to exit Chapter 11 bankruptcy protection.

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.

In a separate letter, Rayburn says Hostess may sell some or all of its Merita bread and bakery operations.

Hostess is based in Irving, Texas.