Workers' strike at Kellogg's brings its U.S. cereal production to a halt
Work at all of Kellogg Co.'s U.S. cereal plants came to a halt Tuesday as 1,400 workers went on strike, but it wasn't immediately clear how much the supply of Frosted Flakes or any of the company's other famous brands would be disrupted. Breakfast cereal sales have spiked during the pandemic, particularly those of older brands that carry nostalgic value.
The strike includes Kellogg plants in Battle Creek, Michigan; Lancaster, Pennsylvania; Memphis, Tennessee; and Omaha, Nebraska.
The union and the Battle Creek-based company have been at an impasse at the bargaining table for more than a year, said Daniel Osborn, president of the local union in Omaha. The dispute involves an assortment of pay and benefit issues such as the loss of premium health care, holiday and vacation pay, and a reduction in retirement benefits.
"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," said Anthony Shelton, president of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union.
The reported threat to move work to Mexico doesn't sit well with Osborn.
"A lot of Americans probably don't have too much issue with the Nike or Under Armor hats being made elsewhere or even our vehicles, but when they start manufacturing our food down where they are out of the FDA control and OSHA control, I have a huge problem with that," Osborn said.
The company insists that its offer is fair and would increase wages and benefits for its employees that it said made an average of $120,000 a year last year.
"We are disappointed by the union's decision to strike. Kellogg provides compensation and benefits for our U.S. ready-to-eat-cereal employees that are among the industry's best," Kellogg spokesperson Kris Bahner said in a statement.
Osborn said he expects the company to try to bring nonunion workers into the plants at some point this week to try to resume operations and maintain the supply of its products.
The company acknowledged that it is "implementing contingency plans" to limit supply disruptions for consumers.
The plants have all continued to operate throughout the coronavirus pandemic, but Osborn said 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 virus.
"The level we were working at is unsustainable," Osborn said.
Kellogg's workers aren't the first food workers to strike during the pandemic.
Earlier this summer, more than 600 workers at a Frito-Lay plant in Topeka, Kansas, walked off the job to protest working conditions during the pandemic, including what they called forced overtime. That strike ended in July when workers ratified a new contract.
Workers at Nabisco plants in five states went on strike in August to protest plans by Nabisco's parent, Mondelez International, to move some work to Mexico, among other issues, according to the same bakery union that represents the Kellogg's workers. That strike ended last month when workers ratified a new contract.