Why Kellogg Workers Are Striking

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Kellogg Company  (K) - Get Kellogg Company (K) Report cereal plant workers in the U.S. went on strike on October 5 when the company's five-year master contract with the Bakery Confectionery, Tobacco Workers, and Grain Millers International Union expired.

The labor dispute includes several pay and benefits issues such as the loss of premium health care, holiday and vacation pay and reduced retirement benefits.

Kellogg spokesperson Kris Bahner said in a statement, "We are disappointed by the union’s decision to strike. Kellogg provides compensation and benefits for our U.S. RTEC (ready-to-eat cereal) employees that are among the industry’s best. Our offer includes increases to pay and benefits for our employees while helping us meet the challenges of the changing cereal business."

But Anthony Shelton, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said, "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,".

Daniel Osborn, president of the local union in Omaha added that for much of that time workers were putting in 12-hour shifts, seven days a week to keep up production while so many people were out because of the coronavirus. "The level we were working at is unsustainable," Osborn said.

Other food workers have gone on strike recently, including those from Frito-Lay and Nabisco, have put more pressure on the already disrupted supply chains that are increasing prices and slowing delivery of many household goods.

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