50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Kellogg's U.S. cereal plant workers go on strike

Published 10/05/2021, 04:57 PM
Updated 10/05/2021, 06:37 PM
© Reuters. FILE PHOTO: Kellogg's Corn Flakes cereal is pictured at a Ralphs grocery store in Pasadena, California August 3, 2015. REUTERS/Mario Anzuoni/File Photo
K
-

By Praveen Paramasivam

(Reuters) - About 1,400 Kellogg (NYSE:K) Co cereal plant employees went on a strike on Tuesday, hoping to get the packaged foods maker to negotiate what a labor union called a "fair contract" for the workers.

The Froot Loops cereal maker has been negotiating the payment and benefits terms of a new contract - the existing one expired at midnight on Monday - with union workers for a while now.

Kellogg has demanded that workers give up quality health care, retirement benefits, and holiday and vacation pay, said Anthony Shelton, president of Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.

Shelton said Kellogg has threatened to send additional jobs to Mexico if workers do not accept its proposals.

However, Kellogg, which brings in about a third of its sales from cereals, said its compensation and benefits for U.S. cereal plant employees were among the industry's best.

"We are disappointed by the union's decision to strike ... our offer includes increases to pay and benefits for our employees," Kellogg spokesperson Kris Bahner said.

The company also said it was implementing contingency plans to deal with supply disruptions, including internal and third-party resources.

The workers went on strikes at plants in Battle Creek, Michigan, Omaha, Nebraska, Lancaster, Pennsylvania and Memphis, Tennessee.

© Reuters. First shift worker Travis Huffman joins other BCTGM Local 3G union members in a strike against Kellogg Co. at the Kellogg's plant on Porter Street in Battle Creek, Michigan, U.S., October 5, 2021. Alyssa Keown/Battle Creek Enquirer/USA Today Network via REUTERS

The union used what looked like an angry version of Kellogg's Frosted Flakes mascot, Tony the Tiger, in posters asking people to join the picket. Pictures on social media showed several workers holding banners outside the facilities.

"The company has a pretty good idea on how long they are willing to hold out and we are going to stand fast as long as we have to," said Daniel Osborn, president of the local union in Omaha, noting the strike had gone on for 18 hours already.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.