Interstate Bakeries seeks court OK to reject Pittsburgh Local union contract

By Caroline Salls

Pittsburgh, Dec. 5 - Interstate Bakeries Corp. requested court approval to reject its collective bargaining agreement with a local affiliate of the Bakery, Confectionary, Tobacco Workers and Grain Millers Union that represents the company's thrift store and shipping/sanitation employees in Pittsburgh, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

Specifically, the agreements cover 27 Pittsburgh thrift store employees and 12 shipping/sanitation workers.

According to the motion, Interstate's investment commitments are contingent on the company obtaining modifications to its collective bargaining agreements to provide labor cost savings necessary to implement "path-to-market" distribution and Interstate's reorganization plan.

Interstate said the Pittsburgh BCTGM Local was the only affiliate to reject negotiated collective bargaining agreement changes.

The company said the Pittsburgh Local has not given a good reason for rejecting the changes and has not attempted to negotiate different changes.

As a result, Interstate said the Local's agreement must be rejected.

A hearing is scheduled for Dec. 15.

Interstate, a Kansas City, Mo., bakery operator, filed for bankruptcy on Sept. 22, 2004. Its Chapter 11 case number is 04-45814.

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