- The Kellogg Company announced Tuesday morning that it had "made the tough decision to implement a lockout, effective 7 a.m., Oct. 22" at its ready-to-eat cereal (RTEC) plant in Memphis, Tenn.
- The announcement, which affects 220 hourly employees, came as the result of failed contract negotiations.
- The employees are represented by the Bakery, Confectionery, Tobacco Workers and Grain Workers Union Local 252G.
No one can be happy—on either side of the table— when these kinds negotiations fail.
“It is frustrating and disappointing to be in this spot, but we can’t continue with the current cost model,” said Marty Carroll, Sr. Vice President, Kellogg North America Supply Chain, in the company's press release. “We are operating in a tough cereal category and the labor costs at our U.S. RTEC plants—including Memphis—put Kellogg at a competitive disadvantage, making it difficult to fund critical efforts such as innovation and brand building.”
Production interruptions and workers on the street will also be an obstacle toward reaching those goals, though, so we hope they come to a resolution soon.