(NEW YORK) — Hostess Brands Inc. announced late Tuesday that court-ordered mediation with the Bakery, Confectionary, Tobacco and Grain Millers International Union was unsuccessful.
A hearing is scheduled for eleven o'clock EST Wednesday in U.S. Bankruptcy Court for the Southern District of New York. It's expected the court will approve the company's liquidation.
On Monday, the bankruptcy judge ordered the mediation. The BCTGM, which represents about 30 percent of Hostess workers, went on strike November 9.
Workers are protesting contract changes imposed by the bankruptcy court. The changes call for an 8 percent pay cut, a 17 percent increase in employee health care costs and overtime pay based on a 40-hour work week instead of an eight-hour work day.