Business

Hostess’ labor woes starting to Sno-Ball

Talks to restructure Hostess, the maker of Twinkies and Wonder Bread, are expected to start distastefully, The Post has learned.

The company, which filed for Chapter 11 protection Jan. 11 due in part to high labor costs, will ask its 20,000 mostly unionized workers to accept stiff concessions, which may include new rules that will force drivers to load their own trucks, adding a couple of hours to the work day and having workers pay more for health insurance.

There could also be demands for thousands of layoffs, including some in the New York metro area.

A person close to the situation who would like to see the union members accept serious concessions says he believes there is only a 50 percent chance that they will.

The unions did not accept a somewhat similar proposal last year from Hostess — prompting last week’s bankruptcy filing.

The insider believes that without concessions no one will invest any more in the business to make needed plant improvements.

The company, since emerging from bankruptcy in 2009, has burned through about $250 million in cash, it said in a Bankruptcy Court filing.

If the unions agree to concessions, the Teamsters and Bakery, Confectionery, Tobacco Workers and Grain Millers International Union will get the chance for significant equity in the business, the insider said.

A union member said, “It is clear that any significant concessions demanded from route people will be overwhelmingly rejected.”

Hostess could be broken up and sold off this summer if the unions do not agree to major concessions, The Post has learned.

Hostess declined comment.