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After filing for bankruptcy protection in January hostess is now on a courtroom battle with Teamsters and the -- unions.
The collective bargaining issues liquidate one of America's favorite brands that -- Nellis air for exclusive.
-- of Raeburn Dennis.
Thanks a lot Carol right to Greg Rayburn work out artist -- -- -- a month ago you testified yesterday in bankruptcy court up to the right to reject union contracts are -- the company.
Teachers could strike over it -- a strike kill the company and if so well the Teamsters really do it.
I don't think there's any question that a strike would kill the company.
And I have to believe them when they tell me.
That they will strike over this issue.
But the issue is really about these pension funds the multi -- pension funds and how dangerous some of the more for our employees and how dangerous they are for potential investors.
You what let's talk red ink and twinkies you lost 340 million dollars last fiscal year a billion dollars in pension costs in the past ten years.
This past -- was nine -- hundred million and half of that.
Went to workers who never worked at hostess at all how much needed cut that nine year hundred million by and then what -- seem to do.
We propose to take -- hundred million that we've paid and multi employer pension costs down to 25 million.
And again as you pointed out fifty cents of -- more than fifty cents of everything we've paid in the past has gone to people who never worked for us because old Teamsters -- absolutely.
OK and what -- gotta do to survive well we need a lot of investment we need we are trying to attract investors right now we have -- process.
We need to put money into our plants to -- to bring them into the century.
We're selling a ton of twinkies Ding Dong co -- but we're doing it -- very old equipment.
Alright well let's talk about those unions and truckers and -- 151000 union workers among your 181000 employees and that those two units 92% of that now.
They have to strike almost 300 separate contracts with these guys are you asking the unions -- -- deeper cuts -- your white collar employees.
Absolutely not yeah that's that's not true at all we actually have laid off 10% of our non unionized workforce in the past year.
13% raise in the past three years the unions have had a 3% raise every year for the past three years.
I've got management team members now.
Under these circumstances today who are stepping up into roles because of departures and they are talking to me at all about their compensation we're not increasing -- -- just -- -- -- more responsibility because the management team wants to get this company out of bankruptcy.
And you actually have union rules that require that a guy who delivers suites can't also deliver -- his truck bred to -- to have separate two trucks for the same store we have crazy work rules still going on in and I think you know again I think in the end of the day we could probably solve all of those issues the issue is really.
The the good pensions that are critical status that have said they're going to be insolvent in ten years OK and that's that's the hurdle -- Now let's cut to court today a Teamsters expert witness testifies and here's an exchange recorded by one your minions all right I think we have -- on a chart thanks our producers post -- lawyer quote.
Do you believe the company can survive a striking an extended period Teamsters expert -- -- so strike call is a liquidation situation for the company Teamsters.
I think that's correct let me ask you -- when was the last time had contact with the union.
Last night and would you guys -- I talked to the leadership last night after the hearing we have agreed that we will probably asked the judge to defer ruling we will finish that the hearing.
Defer ruling and we will sit down next week and reconvene and negotiate and -- if we can advance of base of the union because the judge delaying the uses of the ruling means that if you if you guys when the ruling on a -- the unions is stood down.
From -- strike threat at least for another week or so until of ruling comes out -- -- Sununu for breaking news here right OK and one last thing.
Why not just chop this baby up those brands are great now but just Sara -- corporate and -- Kraft would love to bond.
They're they're great brands there's no doubt and have been four for eighty years but again.
You get back to unions successor -- issues if you try to sell them under the contracts that we have the buyers could be absorbing some of those -- -- successor -- liabilities -- -- even at chop up our Greg -- CEO newly appointed a post this thank you for being with us on this exclusive today.
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