September 10, 2007

(Chicago) – International Brotherhood of Teamsters General President Jim Hoffa and Bakery Conference Director Richard Volpe announced today that Teamsters negotiators have broken off talks with Interstate Bakeries Corporation (IBC) due to the company’s intransigent positions and refusal to discuss alternate options available to the company as it struggles to emerge from bankruptcy proceedings. The Teamsters represent more than 10,000 men and women at IBC who are covered by nearly 300 separate collective bargaining agreements.

“The Teamsters entered negotiations this week with an open mind,” Volpe said. “We fully understand the company’s financial and competitive position. In fact, our members have negotiated and agreed to sacrifices that resulted in more than $16 million in annual savings to the company. Not only does the company refuse to recognize those contributions, the company continues to exclude viable investment partners that could result in its emergence from bankruptcy.”

Prior to entering the current round of negotiations, IBC announced the closing of its southern California operations that would put 1,300 union members out of work, including 800 Teamsters. Despite never indicating to the Teamsters or BCTGM of its intention to close the bulk of its southern California operations, IBC management is now demanding that workers agree to significant concessions or face additional closings. This approach will only result in the further devaluation of the company during this tenuous period.

“We refuse to negotiate with a gun to our heads,” Hoffa said. “Our members will take the necessary actions to show the company that they are prepared to stand and fight for their livelihoods.”

The company has refused to consider putting the closing of Southern California bread operations on hold pending further discussions.  It has also refused to guarantee that should workers agree to concessions, the company will not close the rest of the operations anyway.  It has even refused to promise that work currently performed by Teamsters will continue to be performed by Teamsters.

Further, IBC continues to demand that Teamster workers contribute more than $320 million over five years, a vastly disproportionate share.

“Make no mistake, we are prepared to be creative and to consider all options that would help IBC once again be an industry leader, either as a stand-alone company or sold to a willing partner,” Volpe said.

The Teamsters Union has encouraged several investors to come to the table only to be told that the company is requiring those potential investors to sign an agreement that prohibits them from talking with the Union.

“We call on the company, and the other constituents in the bankruptcy process, to work with us to formulate a plan that brings IBC out of bankruptcy,” added Volpe. “We are prepared to look at ways to save additional costs. However, we must be viewed as a party that has a significant investment in the process. Further, we call on the company to cease excluding viable investment partners, restricting alternatives that will only drive down the value of the company.”

Founded in 1903, The International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women.