Gephardt Group Labor Advisory Services Provides Balanced Perspective in Labor Agreement
Mar 10, 2009
PRNewsire
March 10, 2009
ATLANTA, March 10 /PRNewswire/-- On February 3, 2009, four years after filing for Chapter 11 protection, Interstate Bakeries Corporation (IBC) emerged from bankruptcy with new owners, a financial reorganization plan and over 22,000 employees. Ripplewood Holdings, a New York based private equity fund and the primary investor in IBC, realized that an essential element to its success would be negotiations with the more than 10,000 Teamsters and 7,000 Bakery and Confectionary workers employed by the company. In early 2008 Ripplewood called on Gephardt Group Labor Advisory Services to provide the expertise and objectivity to help structure a fair labor agreement that would meet the need for improved financial performance while retaining union jobs.
“The Gephardt Group involvement gave the unions confidence that the process would be fair and all issues would be carefully considered,” said Greg Murphy, Industrial Partner for Ripplewood and an IBC Board Member. Importantly, their past experience with agreements that featured equity participation was very helpful. Congressman Gephardt radiates fairness, honesty and decency. His presence set the tone for our negotiations.”
From February through November of 2008, Gephardt Group, in collaboration Mike Mathis and Chuck Harple of The Mathis Group, worked with Ripplewood and the IBC unions to structure a deal that reduced labor and benefits costs in exchange for the right to equity participation in the post-bankruptcy company. Rich Volpe, director of the International Brotherhood of Teamsters’ Bakery and Laundry Conference, said of the arrangement, “We were pleased to have Dick Gephardt and his team bring their integrity and experience to the process. While the past four and a half years have been difficult for our workers, we are satisfied that the resulting agreement preserved Teamster jobs and will allow our members to participate in the equity value they bring to IBC. We care about the long-term success of our members and their employing companies.”
Dick Gephardt, CEO of Gephardt Group Labor Advisory Services, is a long-time proponent of providing equity ownership to employees. “When employees begin to think and act like owners, they realize how every decision they make influences the company’s success,” said Gephardt. “In these difficult economic times we are grateful that we were able to play a role in retaining thousands of jobs and helping IBC move forward towards once again becoming a great American company.”
About Gephardt Group Labor Advisory Services:
The Gephardt Group Labor Advisory Services team works with
business executives to help manage the complex relationships between
companies, employees and union leaders. Gephardt Group is able to
assess the labor-management situation and develop a labor relations
strategy that complements the business objectives. Gephardt Group also
provides labor mediation services and can help prepare companies for
the collective bargaining process. www.gephardtgroup.com
Contact: Matt Gephardt – COO and Managing Partner (877) 437-4770 x703