Kellogg has refused to be drawn on union claims the company has indicated it is set to close two of its cereal plants in the US.
David Durkee, international president for the Bakery, Confectionery, Tobacco and Grain Millers Association, has reportedly informed the union’s members “a top Kellogg executive” had told him the company is set to announce the closing of two US cereal plants.
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Kellogg declined to comment on whether it does plan to shut any of its cereal facilities in the US.
“We are evaluating our US ready-to-eat cereal manufacturing network and will work to ensure that we are operating the right number of plants – in the right locations – to better meet our current and future production needs, and the evolving needs of our customers,” a spokesperson said.
Kellogg, like its peers, is facing a stagnant cereal category in the US. The company did confirm it has proposed changes to health care benefits and wage adjustments for staff at four cereal plants in the country: in Battle Creek, Memphis, in Lancaster, Pennsylvania and in Omaha.
Proposed changes include eliminating cost-of-living adjustments at the beginning of next year, and changes to leave of absence benefit.
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By GlobalDataKellogg said the proposal was “appropriate given the pressing nature of the challenges we face in the category”.
However, staff reportedly rejected the proposals last week. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said only 21 of the 1,289 votes cast were in favour of the proposal, the Battle Creek Enquirer reported.
The Kellogg spokesperson told just-food it was “disappointed” in the outcome.
“The reality is that significant challenges remain – the ready-to-eat cereal category continues to decline and that leaves us with far more production capacity than we need in our US cereal network. While we firmly believe that we can build a sustainable future for this business, we must take steps now to begin that process.”
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Local 3G in Battle Creek did not respond to just-food’s request for comment.
