October 4, 2007

(Washington, D.C.) –Teamster representatives appeared in U.S. bankruptcy court in Kansas City yesterday to oppose the Interstate Bakeries Corp. plan to shutter bakery operations in Southern California. The union also opposed the company’s eighth request to extend the time period for it to come up with a plan to exit bankruptcy.

Over the Teamsters objections, the judge deferred to the company on the closing of the Southern California operations despite the fact that those operations represent about 10 percent of bread revenues and 1,300 workers. The judge, however, granted only a 30-day extension of the exclusive periods in which to file a reorganization plan. The company originally had requested an extension to January 2008. 

"The odds may be in favor of the mismanagement at Interstate now, but that tide can change in the next few weeks," said Jim Hoffa, Teamsters General President. "Not only are the 10,000 Interstate Teamster workers a force to be reckoned with, but add to that our national membership of more than 1.4 million, and we have a wall of support." 

"We disagree with the court's decision and we vow to keep fighting for economic justice for our members at Interstate," said Richard Volpe, Director of the Teamsters Bakery Conference. “Our bread plants in Southern California were viewed by Interstate as just another casualty. We were never consulted about the closing of those plants.

“The company now has a firm timeline to come up with a plan,” Volpe said. “Its games of excluding viable investors that are willing to work with the unionized workforce will quickly come to an end. We stand willing to bargain with those that have a long-term view and value the hard work of the 10,000 Teamsters and thousands of union-represented employees at Interstate. We were prepared to introduce such an investor, Yucaipa Companies, but the judge gave the company a 30-day reprieve.”

The Teamsters and Yucaipa have a long history of working together and are confident that they can work together to preserve jobs at Interstate while also maximizing value for all stakeholders. “We will continue to explore options that are in the best, long-term interest of the company and protects our members’ job security,” Volpe said.

Founded in 1903, the Teamsters Union represents more than 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico.