Labor & Employment

Can We Talk? At Bankruptcy Judge's Urging, Hostess and Union Agree to a Mediation Session

At the urging of a federal judge in charge of the company’s bankruptcy case, Hostess Brands Inc. and the union representing one of its largest groups of workers have agreed to mediate in an effort to prevent the total liquidation of the bakery goods company, which is particularly known for Twinkies and Wonder Bread brands.

Judge Robert Drain will sit down Tuesday with the two sides. If that doesn’t resolve the impasse, Hostess will return to U.S. Bankruptcy Court in White Plains, N.Y., on Wednesday and continue with the liquidation, according to the Associated Press and the Wall Street Journal.

The company had previously said it would have no choice but to close down, given the expected crippling cost of a long-term strike already in progress,

“Many people, myself included, have serious questions as to the logic behind this strike,” said Drain during a Monday court hearing. “Not to have gone through that step leaves a huge question mark in this case.”

Additional coverage: “Lawyers for Hostess to Appear in Court Today; Twinkies May Survive”

ABC News: “Judge Asks Hostess, Union to Agree to Mediation”

Think Progress: “Hostess Blames Union For Bankruptcy After Tripling CEO’s Pay”

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