Bankrupt Interstate Bakeries' bonus plan sparks objections

“In essence, the incentive plan seeks to pay selected employees significant bonuses for work they would have performed even if no incentive program was instituted”

Several parties in Interstate Bakeries' reorganization have filed objections to the bankrupt company's plan to pay more than $6 million in bonuses to 514 management employees.

Objections came from the unsecured creditors committee, which represents creditors owed $330 million; the International Brotherhood of Teamsters; and the Bakery, Confectionery, Tobacco Workers and Grain Millers Union. The unions represent IBC's 20,000 union employees.

The creditors committee notes that more than 30 percent, or $1.8 million of the total bonus amount, is allocated to a group of 17 individuals. Of that $1.8 million, four individuals are to receive about 15 percent of the total, or $892,000. Read more

[Paul]

They want routes sales people, bakery, etc. to take paycuts while these people get a BONUS?

How can they suggest a bonus when they are in Bankruptcy and asking people to take a pay cuts?

[Ex IBC employee]

They are ready to sell off company piece by piece just to pay off creditors they owe. All of the upper management will work for someone else so they don't want their name tied to a company that backed out on a creditor. Knowing they're going under, they pay themselves while they can get away with it under court supervision. They all realize the end is near when they won't be able to pull money out any longer.

[Optimistic Mike]

That bonus stuff is discouraging, but what really matters is finding a way to play nice with the unions. Hunker down, folks, because each union has different concerns and this is going to take a while. Can't really blame them. That said, IBC is still big enough that most of the unions really don't want to tell their membership that this ship is sunk. Keep the faith (and buy more stock.)

[paul shykora]

LONG LIVE ''ALL'' dhe BAKERS,tooo boot!!...eh.GOD Bless in dhese hard times..Thankyous' All.The hillbilly farmboy has spoken...now yodeling...eh...