The contract calls for extreme wage and benefit cuts which amount to 27- 32% overall, with an 8% wage reduction imposed immediately. The company unilaterally ceased making contributions, required by their union contracts, to the workers' pensions in July 2011. Hostess has also imposed draconian cuts in health benefits and eliminated the eight-hour workday.
Read more here: http://www.sacbee.com/2012/11/09/497...#storylink=cpy
The CEO was seeking a $1M pay increase while asking for these concessions.