UPDATE 1-Employees at Kellogg’s U.S. Grain Plant Reject Revised Offer


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Nov. 3 (Reuters) – Kellogg Co said Wednesday evening that its workers at the grain plant had rejected a revised offer from the U.S. packaged food maker, extending negotiations for several months on a new contract.

Workers went on strike on October 5 after their contracts expired, as payment and benefits negotiations stalled over disputes between the company and about 1,400 members of the grain factories union by Kellogg.

Cereal maker Froot Loops said in a statement that its revised offer, which is due to expire Nov. 11 at midnight, was immediately rejected by the union who refused to submit it to employees for a vote.

“This is our ‘last best final offer’ to the union. “

Kellogg has demanded that workers forgo quality health care, pensions and paid time off, said Anthony Shelton, president of the International Bakery, Confectionery, Tobacco and Millers Union (BCTGM) last month ).

The BCTGM union insists on “unsustainable and unrealistic” proposals, Kellogg said Wednesday.

The union will continue its strike, Bloomberg reported earlier today, citing a message from the BCTGM.

The union did not immediately respond to Reuters’ request for comment.

The revised offer specified that the company would maintain legacy salaries and benefits along with higher salaries for current and future transition employees, although it did not propose any changes to current health care plans.

Kellogg proposed a two tier employment system that would slowly remove power from the union by removing the 30% cap on the number of workers in transition, BCTGM members said.

“We no longer offer a permanent two-tier structure,” the company said.

The latest stall in negotiations means Kellogg’s breakfast cereal manufacturing facility in Battle Creek, Michigan, Omaha, Nebraska, Lancaster, Pennsylvania and Memphis, Tennessee would not be operating at full production capacity.

(Reporting by Aishwarya Nair in Bengaluru and additional reporting by Praveen Paramasivam; Editing by Sherry Jacob-Phillips)

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