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Nearly 1,400 Hourly Employees Reject Kellogg's Tentative Deal

Kellogg Company (K) on Tuesday revealed that about 1,400 hourly employees at its four U.S. cereal plants in Battle Creek, Michigan, Omaha, Nebraska, Lancaster, Pennsylvania and Memphis, Tennessee, have rejected the tentative agreement for a new five-year contract.

According to Kellogg, the contract between the company and the Bakery, Confectionary, Tobacco Workers and Grain Millers (BCTGM) International Union would have "provided an accelerated, defined path to legacy wages and benefits for transitional employees, and wage increases and enhanced benefits for all, among other items."

"After 19 negotiation sessions in 2021, and still no deal reached, we will continue to focus on moving forward to operate our business," said Chris Hood, President, Kellogg North America. "The prolonged work stoppage has left us no choice but to continue executing the next phase of our contingency plan including hiring replacement employees in positions vacated by striking workers."

"While certainly not the result we had hoped for, we must take the necessary steps to ensure business continuity," Hood said. "We have an obligation to our customers and consumers to continue to provide the cereals that they know and love."

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