Kellogg Co. workers who make the Battle Creek company’s cereals, including Frosted Flakes, Corn Flakes, Raisin Bran, Rice Krispies, and Froot Loops remained off the job Wednesday, October 6, a day after going on strike.
Besides Battle Creek, workers also were on strike at the company’s factories in Omaha, Nebraska; Lancaster, Pennsylvania; and Memphis. Production was halted after 1,400 U.S. workers who belong to the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union walked off the job at 1 a.m. Tuesday after their contract expired. It wasn’t immediately clear how cereal production was affected.
The union and the Michigan-based company have been at an impasse on an assortment of pay and benefits, including vacation, health care, and holiday compensation, for more than a year, Daniel Osborn, president of the local union in Omaha, tells the Associated Press. The union says Kellogg’s has threatened to send additional jobs to Mexico if workers don’t accept the company’s proposals.
A Kellogg’s spokesperson said in a released statement that the company was disappointed by the union’s decision to strike. The workers’ pay and benefits “are among the industry’s best,” with average salaries of $120,000 a year, the statement says.
Shares of Kellogg’s fell 0.8 percent to $64.02 at the close of trading on Tuesday.
Kellogg’s has been headquartered in Battle Creek since its founding in 1906 as “Battle Creek Toasted Corn Flake Company.”