Teamsters Tell Interstate Bakeries Board: NO Confidence in Management Team |
Proposed Delivery System Untested in Baking Industry
WASHINGTON, Oct. 19 /PRNewswire-USNewswire/ -- 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.
SOURCE International Brotherhood of Teamsters
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CONTACT:
David White of International Brotherhood of
Teamsters, +1-202-624-8730, dwhite@teamster.org
