Under the Hostess proposal, the details of which were provided to Fortune on an anonymous basis, Hostess employees, including management, would have the following concessions.
- Wages immediately cut 8% but then raised 3% in the next year of a five-year contract.
- Employer contributions for health insurance would decrease 17% and Employee contributions would go up by 17%.
- Contributions to multi-employer pension plans would cease until 2015, at which point the current required level of funding would plummet from $100 million to $25 million.
- 25% Equity stake and 2 seats on a restructured board.
Union Leaders from the Confectionary, bakers, and tabacco workers union said they could not accept this deal
while leaders from the teamsters accepted the deal.
This caused 36 bakeries to close and a loss of 18,500 jobs.
Average baker at hostess with 20 years experience was 45,000
My current day time job pays me 30,000 a year and if it meant having a job or not having a job I would have taken the 3600 dollar a year pay cut easily. Just my thoughts that union heads are idiots.