Kellogg's has locked employees out over labor dispute - FOX13 News, WHBQ FOX 13

Kellogg's has locked employees out over labor dispute

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    Friday, October 4 2013 3:43 PM EDT2013-10-04 19:43:45 GMT
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MEMPHIS, Tenn. (FOX13) -

UPDATE: 

More than 200 workers at the Memphis Kellogg's plant are locked out of work this morning. The reason...their labor contract expired at midnight.

READ: Memphis Kellogg's union letter to Kellogg's corporate outlining disgust
READ: Kellogg's warn letter (April 9, 2013)

Under the new contract from Kellogg's salaries would be cut, all new employees would have to be part time and their insurance and retirement would be limited.

Kellogg's already laid off 33 employees back in August; the second layoff this year. A total of 70 jobs were cut in 2013.

A Kellogg's rep said it had to be done to stay in business.

In August, Kellogg's said there were no plans to close the Memphis plant.

As for this morning's picketing the union rep says Kellogg's employees will be outside the plant starting at 7 a.m.

STATEMENT FROM KELLOGG:

"Since Sept. 17, 2013, Kellogg and the BCTGM Union have met on 13 different occasions to negotiate a supplemental contract in Memphis, which covers the approximately 220 hourly Memphis plant employees.  After weeks at the bargaining table, the Union – regrettably – has indicated they are not willing to agree to the Company's key proposals. On Tuesday, Oct. 15, they informed the Company that they were done negotiating over those key proposals, and left the table.

The contract expired at 12:01 a.m. on Oct. 20, 2013. Reaching a fair and competitive contract is a critical factor in the future success of the Memphis plant. On Oct. 16, Kellogg made the tough decision to inform the Union of its intent to implement a lockout. If an agreement is not reached by contract expiration, Kellogg implemented a lockout at the Memphis plant at 7 a.m. on Oct. 22.
The Company remains available to meet with the Union and address any concerns - or answer any questions - in and effort to reach an agreement on Kellogg's Last/Best Offer, or to consider any proposals that the Union would make."

Regards,

Kris Charles, Kellogg Company spokesperson
Corporate Communications

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(previous story)

Several local sources are telling FOX13 News that 226 employees at Memphis' Kellogg's plant could be locked out as early as Tuesday morning.

READ: Memphis Kellogg's union letter to Kellogg's corporate outlining disgust
READ: Kellogg's warn letter (April 9, 2013)

One source confirmed that the labor contract between the company and the employees has expired and Kellogg's is demanding that employees begin working "alternative schedules," which would save Kellogg's money but cut employee salaries by thousands of dollars.

MORE: Kellogg's Memphis laying off 70 employees

The building is expected to chain its doors before 7 p.m.

FOX13 News sources said employees will form a picket line Tuesday morning. Local employees are calling what the company is requesting on the local level, "illegal" based on national negotiations.

In August Kellogg's laid off another 33 employees in their second layoff this year, which ultimately resulted in a total of 70 jobs lost in 2013. During that time, Kellogg's told FOX13 News those cuts were a reorganization necessary to streamline the operation.

The company also said in a written statement Aug. 1 that there are no plans to close the Memphis plant permanently.

FOX13 News sought comment from Kellogg's corporate office but calls and e-mails have been returned.

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