Kellogg (NYSE:K) stock is in the news today as investors react to an update from the company concerning the current employee strike.
Let’s jump into the latest details from the Kellogg strike update below!
- According to a press release from Kellogg, a majority of its U.S. workers have rejected a new five-year contract.
- That includes some 1,400 employees at the company’s cereal plants in Battle Creek, Mich., Omaha, Neb., Lancaster, Pa. and Memphis, Tenn.
- Following this rejection, Kellogg is moving forward with plans to permanently replace the workers with new hires.
- The company notes that it’s taking this option to continue normal business operations impacted by the strike.
- Employees in the strike are represented by the Bakery, Confectionary, Tobacco Workers and Grain Millers (BCTGM) International Union.
- The strike has been taking place since Oct. 5 and 19 negotiations have been held since then.
- The union says it will continue to stand behind the striking employees.
- That may work out in their favor as Kellogg could have trouble finding enough workers to replace striking employees.
- It also has to take into account if those workers will be willing to upset workers on strike and pass through their picket lines every day.
Chris Hood, President of Kellogg North America, said the following about the strike in a news release update.
“While certainly not the result we had hoped for, we must take the necessary steps to ensure business continuity. We have an obligation to our customers and consumers to continue to provide the cereals that they know and love.”
K stock is down 2.7% as of Wednesday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.