Interstate Bakeries seeks to negotiate long-term extensions to collective bargaining agreements

By Caroline Salls

Pittsburgh, Aug. 23 - Interstate Bakeries Corp. requested approval to negotiate long-term extensions and other changes to its collective bargaining agreements, according to a Monday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

According to the filing, the company has thousands of employees, a majority of which are covered under one of about 500 union contracts.

Under the motion, Interstate wants to implement agreements that extend the various collective bargaining agreements for up to five years and may modify, amend, replace or change the terms and conditions, including changing wages and benefits and work rules or operational guidelines.

Previously, the court granted an extension to the agreements for up to one year and sought to maintain existing union relationships in the cases while Interstate and the unions review the collective bargaining agreements in relation to the company's restructuring efforts.

According to the filing, now that restructuring efforts are well underway, including consolidation of profit centers, the company feels it is time to establish long-term arrangements with its union employees, which will aid in its emergence from Chapter 11.

A hearing is scheduled for Sept. 29.

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

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