Inflexible and Uncompetitive Collective Bargaining Agreements. As stated above, the Debtors are party to 372 separate collective bargaining agreements (collectively, the "CBAs"). The CBAs collectively mandate maintenance of 80 different health and welfare benefit plans, the sheer number of which impose excessive administrative and cost burdens on the Debtors. The CBAs mandate increases in wages and medical and other benefits for the fiscal year ending June 2, 2012 that total an additional $31 million. In addition, the CBAs contain a variety of different work rules that hamstring operations and make the CBAs uncompetitive as well as extremely difficult to administer. For example, the Debtors often provide both bread and cake products to an individual customer location. The existing work rules require that, on many routes, separate trucks must deliver the bread and cake products to that single customer location. The work rules also require that, in some bakeries and distribution centers, a separate individual must be used to load the trucks (the Debtors' competitors have drivers who load their own trucks) and separate people must load either bread or cake onto a truck. Finally, work rules require that, in some instances even when a route representative is already visiting a customer location, that representative may not move product within that location; rather, a separate employee must visit the customer location to move product from the back room to the shelf. Often, this so-called "pull-up" employee cannot move both bread and cake and, thus, two "pull-up" employees must make this same trip. This multiplies the number of individuals necessary to deliver product to customers and doubles the costs associated with trucks and fuel. Finally, the work rules prevent the Debtors from implementing alternative distribution systems into new, currently unserved markets.
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