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Approximately 1,400 Kellogg Co grain factory employees went on strike to try to get the packaged food manufacturer to negotiate what the union calls “fair contracts” for workers.
The Froot Loops grain manufacturer has been negotiating the payment and benefits terms of a new contract — the existing contract expires at midnight on Monday — and the union workers who went on strike on Tuesday.
Anthony Shelton, chairman of the International Union of Bakeries, Candy Stores, Tobacco Workers and Grain Processors, said Kellogg requires workers to give up high-quality healthcare, retirement benefits, and vacation and holiday pay.
Shelton said that if the workers did not accept his offer, Kellogg’s threatened to provide more jobs in Mexico.
However, Kellogg, which accounts for approximately one-third of its sales from grains, said that it provides the best salaries and benefits for employees in US grain factories in the industry.
“We are disappointed with the union’s decision to strike… Our proposal includes increasing employee wages and benefits,” Kellogg spokesperson Kris Bahner said.
According to Bloomberg News, the company stated in an email statement that the average income of union employees in 2020 is $120,000.
Kevin Bradshaw, the vice chairman of the Memphis local union who has worked in Kellogg for more than 20 years, said that his factory’s base salary is about $58,000 per year, but last year’s figure was exaggerated due to overtime caused by the pandemic.
“We work 7 days a week, 12 to 16 hours a day,” Bradshaw said.
At the close, Kellogg’s shares fell 0.8% to $64.02, wiping out the gains made earlier in the day. This year, the stock has risen 2.9%, which is lower than the S&P 500’s 16% gain.
Labor shortage
The company also stated that it is implementing contingency plans to deal with supply disruptions, including internal and third-party resources.
Workers went on strike at factories in Battle Creek, Michigan, Omaha, Nebraska, Lancaster, Pennsylvania, and Memphis, Tennessee.
The union used the seemingly angry version of Kellogg’s matte mascot, Tony Tiger, in posters asking people to join the picket. Images on social media showed several workers holding banners outside the facility.
Daniel Osborn, chairman of the local labor union in Omaha, said: “The company knows how long they are willing to persist. As long as we must persist, we will persist.” He pointed out that the strike is over. It’s been 18 hours.
The strike shows how American workers are pressing for higher wages as labor shortages and unprecedented supply chain bottlenecks force companies to raise prices and carry out profound operational changes. Since the beginning of the COVID-19 pandemic, employees in basic factories (such as those operated by packaged food companies) have faced difficult conditions.
Last month, workers in the five states of Nabisco approved new labor contracts after a strike caused a slowdown in the production of Oreo and Triscuit biscuits.
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