UPDATE March 27, 2013:
U.S. GOVERNMENT CHARGES KELLOGG WITH SERIOUS VIOLATIONS OF FEDERAL LAW
The U.S. government has charged the Kellogg Company with multiple and serious violations of federal law stemming from the October 22, 2013 lockout of more than 220 workers at the Memphis cereal production facility.
In filing a Complaint against Kellogg based on charges filed by Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) Local 252G, the local representing the locked out members, the General Counsel of the National Labor Relations Board (NLRB) – the official charged with prosecuting employers for violating the National Labor Relations Act – determined that the company’s conduct in the supplemental contract negotiations in Memphis that led to the lockout was in clear violation of the federal law governing labor and management relations in the U.S…
Kellogg is a $14 billion dollar company that has been on a crusade to shrink its skilled workforce and replace good jobs with cheaper, disposable workers. The workers who make Frosted Flakes and Froot Loops in Memphis, Tenn. refused to accept their outrageous take-backs and found themselves locked out of their jobs when they showed up to work last October. While these employees have implemented a fight of their own in the name of America’s middle-class, the Company has already announced the closures of plants in London, Ontario, Charmhaven, Australia, Charlotte, North Carolina, and line closures in Cincinnati, Ohio and Wrexham, UK. These are jobs which will be lost indefinitely.
Meanwhile, Kellogg continues to spend hundreds of millions of dollars per year on executive compensation, shareholder payouts and sponsorship and advertising programs which paint them as a beacon of corporate responsibility.
In November, Kellogg Company announced the introduction of “Project K”, a global four-year efficiency and effectiveness program. Implementing the program, which includes plant closings and line closures that will eliminate 7% of Kellogg’s workforce, will cost the company $1.4 billion.
While Kellogg Company has dressed up their new “efficiency plan” in pretty packaging, using words like “more effective”, “reduce complexity”, and “ability to operate”, it is clear the project’s aim is to generate even more profits for its big investors, corporate executives and big bank lenders. Kellogg will not be shrinking executive pay. Kellogg will not stop giving out generous dividend payments to its largest institutional shareholders. Project K is only about job reduction.