Updated 09/10/2009 01:56 PM
Stella D'Oro Owners Sell Brand, Move Operations To Ohio
Italian cookie and breadstick maker Stella D'Oro is closing its doors after decades in the Bronx, leaving the fate of dozens of employees uncertain.
Stella D'Oro's owners, Brynwood Partners, announced Thursday that it sold the brand to Lance Incorporated, which is moving the operations to Ohio.
The move comes after Brynwood could not agree over wage concessions with Local 50.
The union had been on strike until July, when a judge ruled Brynwood had negotiated in bad faith and ordered the company to pay lost wages and benefits.
Brynwood says it's saddened, but was left with no viable alternative due to the union's unwillingness to compromise.
Local 50, which represents 150 workers at the plant, argues that Brynwood has "never been forthcoming in providing us with documentation to substantiate the level of concessions they've asked for."
The union also charges that the company used "scare tactics" as opposed to real negotiation tools.
"It's a scare tactic, either you take what we're offering, or we're going to pick up and leave. If they want to blame us, let them blame us," said the union in a statement. "But I think the people stood up. They had a right to fight and maintain a decent standard of living. The courts agreed with us. The union is there to support its members and that's what we're there to do. We weren't wrong in what we did. What's wrong is that the law allows companies to sell of its business in order to avoid a judgement of the law."