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Kellogg to permanently replace 1,400 striking factory workers

Dow Jones2021-12-09

The move ends a labor feud between employees and the cereal brand that lasted about two months

Kellog $(K)$ says it is permanently replacing about 1,400 of its striking factory workers, ending a labor feud between employees and the cereal brand.

"The prolonged work stoppage has left us no choice but to hire permanent replacement employees in positions vacated by striking workers," the company wrote in a statement on Tuesday night.

Workers had reportedly been striking for a variety of reasons including issues surrounding compensation, benefits and cost of living, according to its union's website.

Earlier on Tuesday, striking Kellogg workers "overwhelmingly voted to reject" a five-year offer from Kellogg that would have given employees a 3% raise.

The strike began on Oct. 5 and took place for employees at factories in Battle Creek, Michigan; Omaha, Nebraska; Lancaster, Pennsylvania; and Memphis, Tennessee.

According to the Associated Press, one of the specific obstacles in the negotiations has been the company's wage system that gives newer workers lower pay and fewer benefits. About 30% of the cereal plant workforce receives these lower wages.

Kellogg makes popular cereals like Frosted Flakes, Froot Loops and Rice Krispies, and had been hiring contract workers to keep up with product demand during the strike.

See also: Pete Buttigieg fires back after Elon Musk blasts federal spending on EVs, saying there are 'things that don't happen on their own'

The Kellogg workers on strike were represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union -- the BCTGM union did not immediately respond to MarketWatch's request for comment on this story.

The news comes as "The Great Resignation" of U.S. workers slowed in October, but over four million people still quit their jobs.

Kellogg stock was down 2.3% during early afternoon trading on Wednesday, compared with a slight drop of 0.1% for the S&P 500.

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评论5

  • Hayz
    ·2021-12-09
    We're the strikers mislead by the union chief?  Wondering how much they will suffer without a job.
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  • lamboandro
    ·2021-12-09
    Good bye
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    收起
    • Gablcm
      Bye
      2021-12-09
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  • MuppyKoh
    ·2021-12-09
    Please like
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    • WBT13
      👍
      2021-12-09
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  • poworb
    ·2021-12-09
    Ha! So much for the "power" of Unions and "influence" and "efficiency" of protests
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    • poworb
      lol
      2021-12-09
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  • Bull_Lion
    ·2021-12-09
    Nice one Kelloggs 👍🏼
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