Employees reject tentative agreement; Kellogg focuses on continuing operations
Kellogg Company announced that approximately 1,400 hourly employees at four U.S. cereal plants have rejected a tentative five-year contract. The agreement aimed to provide transitional employees with a path to legacy wages and benefits, alongside wage increases and improved benefits for all workers. Following 19 negotiation sessions without reaching a deal, Kellogg plans to hire replacement employees to maintain operations. President Chris Hood emphasized the necessity of ensuring business continuity for customer satisfaction amidst the ongoing work stoppage.
- Kellogg is implementing a contingency plan to maintain business operations.
- Continued commitment to providing customers with their favorite cereal products.
- Approximately 1,400 employees rejected a five-year contract, leading to prolonged negotiations.
- The rejection may disrupt operations and affect business productivity.
BATTLE CREEK, Mich., Dec. 7, 2021 /PRNewswire/ -- Kellogg Company was informed today that the approximately 1,400 hourly employees at its four U.S. cereal plants in Battle Creek, Mich., Omaha, Neb., Lancaster, Pa. and Memphis, Tenn., have rejected the tentative agreement for a new five-year contract.
The contract between Kellogg and the Bakery, Confectionary, Tobacco Workers and Grain Millers (BCTGM) International Union would have provided an accelerated, defined path to legacy wages and benefits for transitional employees, and wage increases and enhanced benefits for all, among other items.
"After 19 negotiation sessions in 2021, and still no deal reached, we will continue to focus on moving forward to operate our business," said Chris Hood, President, Kellogg North America. "The prolonged work stoppage has left us no choice but to continue executing the next phase of our contingency plan including hiring replacement employees in positions vacated by striking workers."
"While certainly not the result we had hoped for, we must take the necessary steps to ensure business continuity," Hood said. "We have an obligation to our customers and consumers to continue to provide the cereals that they know and love."
For more information, visit Kellogg's negotiations website at kelloggsnegotiations.com.
About Kellogg Company
At Kellogg Company (NYSE: K), our vision is a good and just world where people are not just fed but fulfilled. We are creating better days and a place at the table for everyone through our trusted food brands. Our beloved brands include Pringles®, Cheez-It®, Special K®, Kellogg's Frosted Flakes®, Pop-Tarts®, Kellogg's Corn Flakes®, Rice Krispies®, Eggo®, Mini-Wheats®, Kashi®, RXBAR®, MorningStar Farms® and more. Net sales in 2020 were approximately
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SOURCE Kellogg Company
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