Kellog says it is permanently replacing about 1,400 of its striking factory workers. “The prolonged work stoppage has left us no choice but to hire permanent replacement employees in positions vacated by striking workers,” the company wrote.
Kellogg Co. K, -1.68% says it is permanently replacing about 1,400 of its striking factory workers, ending a labor feud between employees and the cereal brand.
Earlier on Tuesday, striking Kellogg workers “overwhelmingly voted to reject” a five-year offer from Kellogg that would have given employees a 3% raise. According to the Associated Press, one of the specific obstacles in the negotiations has been the company’s wage system that gives newer workers lower pay and fewer benefits. About 30% of the cereal plant workforce receives these lower wages.
The Kellogg workers on strike were represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union — the BCTGM union did not immediately respond to MarketWatch’s request for comment on this story.
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