Oct 6, 2021 - Economy & Business

Kellogg's workers go on strike at all U.S. cereal plants

 Kellogg's Corn Flakes production line.
Kellogg's Corn Flakes production line. Photo: Jeffrey Greenberg/Universal Images Group via Getty Images

Some 1,400 Kellogg Company workers went on strike at all of the company's U.S. cereal plants Tuesday.

The big picture: The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said in a statement it's seeking a "fair contract" for workers in negotiations with the company after the previous one expired at midnight Monday.

  • Work stopped at plants in Battle Creek, Michigan; Omaha, Nebraska; Lancaster, Pennsylvania; and Memphis, Tennessee — where iconic brands such as Rice Krispies, Raisin Bran, Froot Loops, Corn Flakes and Frosted Flakes are produced.

What they're saying: Union president Anthony Shelton accused Kellogg's in the statement of demanding workers "give up quality health care, retirement benefits, and holiday and vacation pay."

  • "The company continues to threaten to send additional jobs to Mexico if workers do not accept outrageous proposals that take away protections that workers have had for decades," Shelton added.

The other side: Kellogg spokesperson Kris Bahner said the company's compensation and benefits for its workers were among the best in the industry, per Reuters.

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

What to watch: It wasn't immediately known whether cereal supplies were affected by work stopping at the plants.

  • The company said it has "contingency plans" for any disruptions to supplies, "including internal and third-party resources," according to Reuters.
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