Teamsters: approve agreement with Interstate Bakeries

Washington /DC. (ibt) Members of the International Brotherhood of Teamsters voted to accept modifications of their agreements with Interstate Brands Corporation (IBC) by an overwhelming majority. The modification agreement, covering more than 9’000 workers, was the culmination of months of work by the union negotiating team to find an appropriate financial partner for IBC that was committed to bringing the Company out of bankruptcy and preserving jobs. «IBC Teamsters were faced with a difficult decision and they voted to preserve their jobs at Interstate Brands Corporation», said Teamsters General President Jim Hoffa. Ripplewood Holdings and the Teamsters reached a tentative labor agreement in September that enabled Ripplewood to line up financing with Silver Point Capital and present IBC management and other stakeholders with a plan to bring IBC out of bankruptcy. The ratification of the labor agreements clears the way for IBC to exit bankruptcy as early as December 2008 and no later than February 2009. «Our members knew this agreement was, by far, the best choice in order to provide IBC with a sound financial footing», said Richard Volpe, Director of the Teamsters Bakery and Laundry Conference. «During negotiations our priority was to protect Teamster jobs, achieve value for our sacrifices and put the company in the best position to grow. We have confidence in Ripplewood Holdings and believe that we can work together with the new management team at IBC so that it may survive and rebuild».