Teamsters give Interstate Bakeries’ CEO a vote of no confidence

[Omaha Steve]

http://www.kansascity.com/business/story/325113.html

Posted on Fri, Oct. 19, 2007 10:15 PM

By JENNIFER MANN
The Kansas City Star

In the midst of last-ditch efforts to negotiate a contract to keep Interstate Bakeries Corp. afloat, the Teamsters union has told Interstate’s board it has no confidence in management.

A letter from the International Brotherhood of Teamsters — signed by 4,000 Interstate workers — was released Friday. It came three weeks before a court-ordered deadline to reach a contract that both sides can live with.

Interstate has said that if it cannot get deep concessions from its 9,000 Teamsters, it will be unable to get the financing to emerge from bankruptcy and will have to sell or liquidate the company. The Teamsters have resisted cuts they consider excessive.

Teamsters General President Jim Hoffa said Friday that the union has particular issues with Craig Jung, who became Intestate’s chief executive early this year. He took over from turnaround firm Alvarez & Marsal, which had been running the company since its Chapter 11 bankruptcy filing in September 2004.

“Mr. Jung’s risky, short-sighted decisions pose a threat to IBC’s product quality, customer base and market share,” Hoffa said in a news release sent out late Friday.

“IBC Teamsters are alerting the board of these risks while there is still time to change the company’s management direction.”

FULL story at link.