October 19, 2007

(Washington, D.C.)  - Earlier this week, the Teamsters Union told the board of directors of Interstate Bakeries Corporation, in a letter that included petition signatures from nearly 4,000 Teamster IBC workers, that CEO Craig Jung’s management decisions are “misguided and dangerous.”

“This petition shows that IBC Teamsters have no confidence in Mr. Jung’s management,” said Jim Hoffa, Teamsters General President. “Mr. Jung’s risky, short-sighted decisions pose a threat to IBC’s product quality, customer base, and market share.  IBC Teamsters are alerting the board of these risks while there is still time to change the company’s management direction.”  

The letter cited Jung’s proposed implementation of an experimental delivery system and rash decision to close IBC’s Southern California operations, two moves that the union says could jeopardize the company’s already fragile customer base.

Jung has proposed implementing a new “Path to Market” delivery system that is largely untested in the bakery industry. Snack food companies have utilized the system, but the shelf life of those products is substantially longer than the baked goods (including Hostess Wonder Bread, Donettes, and Ho Hos) that IBC counts as its flagship brands. 

“Jung’s intransigent position on Path to Market and mean-spirited decision to close its Southern California operations and attempts to wrest further sacrifices from the dedicated workers who took wage concessions earlier in the bankruptcy is the wrong approach,” said Hoffa. “Why should our members follow Jung’s path when he’s not willing to discuss and recognize the sacrifices being asked of our members?”

“We urge the IBC board of directors to examine closely the performance of their current management team,” said Richard Volpe, Director of the Teamsters Bakery Conference. “Their shortsightedness, misguided and risky operational decisions and failure to act in the best interest of IBC’s shareholders, workers and customers threaten the very future of this company.”

More than 9,000 IBC employees are represented by the Teamsters Bakery Conference at bakeries nationwide. Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico.