Kellogg union workers reject contract, prolonging strike

The union representing about 1,400 Kellogg cerealplant workers rejected the tentative labor agreement reached by negotiators last week, prolonging a strike that began more than two months ago.

“The tentative agreement was overwhelmingly rejected by the union body,” said Dan Osborn, president of the Omaha, Nebraska, chapter of the union.

Kellogg said in a statement that it was “disappointed” by the outcome and would hire permanent replacements for the positions vacated by striking employees.

“We have made every effort to reach a fair agreement, including making six offers to the union throughout negotiations,” said Kellogg spokesperson Kris Bahner in an emailed statement. “It appears the union created unrealistic expectations for our employees.”

The collapse of the deal extends one of the more high-profile union clashes at a time of renewed clout for organized labor in the U.S. Workers at four of Kellogg’s U.S. plants walked out in early October, leading the company to resume operations with temporary employees and salaried staff.

Kellogg shares rose 0.9% to $64.14 at 11:01 a.m. in New York. The stock is up 3% this year, trailing a 25% advance in the S&P 500 index.