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Hostess says mediation with union fails | News

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Hostess says mediation with union fails
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NEW YORK  - Hostess Brands Inc says efforts to reach an agreement with the Bakery, Confectionery, Tobacco and Grain Millers Union have been unsuccessful and it will return to bankruptcy court Wednesday to begin liquidation proceedings,  

A judge on Monday directed  Hostess and the union to work out their differences over wage and other concessions.

The baker declared last week it would move to wind down its business and start selling off its assets in bankruptcy court. After making its case to liquidate on Monday, however, the bankruptcy judge hearing the case noted the two sides hadn't yet tried resolving their differences through private mediation.

Hostess shut down its three dozen plants late last week after it said a strike by the union crippled its ability to maintain normal production.

The union, which represents about 30 percent of the company's workers, says the company's demise was the result of years of mismanagement, however, and that workers have already given steep concessions over the years.

Hostess employs more approximately 18,500 workers around the U.S. It has a bakery on Arden Way in Sacramento with about 225 employees.

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