Tasty union agreed to contract day before sale announced
On Sunday, the day before the announcement that Flowers Foods Inc. had agreed to buy Tasty Baking Co. for $34.5 million plus the assumption of Tasty's heavy debt load, 249 newly organized workers at the company's South Philadelphia site agreed to a four-year union contract, according to Tasty's annual report, which was filed Tuesday after the stock market closed.
On Sunday, the day before the announcement that Flowers Foods Inc. had agreed to buy Tasty Baking Co. for $34.5 million plus the assumption of Tasty's heavy debt load, 249 newly organized workers at the company's South Philadelphia site agreed to a four-year union contract, according to Tasty's annual report, which was filed Tuesday after the stock market closed.
The workers had voted last August to join the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union. Flowers, of Thomasville, Ga., employs 8,800, but only 780 of them are unionized, according to the company's most recent annual report.
Tasty also reported that its loss in the most recent fiscal year, when it completed its move into the new, $78 million bakery at the Philadelphia Navy Yard, ballooned to $45.2 million, compared with a loss of $3.4 million the year before.
Revenue was off 5 percent, to $171.7 million in the year ended Dec. 25, from $180.6 million the year before. - Harold Brubaker