Kellogg to permanently replace 1,400 striking union factory workers

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Kellog K, -1.59% says it is permanently replacing astir 1,400 of its striking mill workers, ending a labour feud betwixt employees and the cereal brand.

“The prolonged enactment stoppage has near america nary prime but to prosecute imperishable replacement employees successful positions vacated by striking workers,” the institution wrote successful a statement connected Tuesday night.

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

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Earlier connected Tuesday, striking Kellogg workers “overwhelmingly voted to reject” a five-year connection from Kellogg that would person fixed employees a 3% raise.

The onslaught began connected Oct. 5 and took spot for employees astatine factories successful Battle Creek, Michigan; Omaha, Nebraska; Lancaster, Pennsylvania; and Memphis, Tennessee.

According to the Associated Press, 1 of the circumstantial obstacles successful the negotiations has been the company’s wage system that gives newer workers little wage and less benefits. About 30% of the cereal works workforce receives these little wages.

Striking Kellogg’s workers Michael Rodarte, Sue Griffin, Michael Elliott and Mark Gonzalez basal extracurricular the Omaha, Neb., cereal works connected Dec. 2, 2021.

AP

Kellogg makes fashionable cereals similar Frosted Flakes, Froot Loops and Rice Krispies, and had been hiring declaration workers to support up with merchandise request during the strike.

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The Kellogg workers connected onslaught were represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union — the BCTGM national did not instantly respond to MarketWatch’s petition for remark connected this story.

The quality comes arsenic “The Great Resignation” of U.S. workers slowed successful October, but implicit 4 cardinal radical inactive discontinue their jobs.

Kellogg banal was down 2.3% during aboriginal day trading connected Wednesday, compared with a flimsy driblet of 0.1% for the S&P 500 SPX, +0.18%.

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