Cereal giant Kellogg announced Thursday that it expects to raise prices as inflation, supply chain problems and a recent labor strike boosted the company’s expenses.
Nearly 1,500 workers went on strike at Kellogg cereal plants in October, and the workers’ union rejected the company’s recent offer on new pay and benefits on Wednesday, Reuters reported. The strike has led to a dip in Kellogg’s profits and contributed to an overall increase in company costs.
The company behind Pop-Tarts, Frosted Flakes and Rice Krispies said Thursday that it anticipates continued supply chain disruptions in the near future, driving up costs as labor strikes continue, according to Kellogg’s quarterly earnings call.
“There is no question that today’s business environment is as challenging as we’ve ever seen it,” Kellogg chief executive Steve Cahillane said.
Cahillane said during the earnings call that the company is still negotiating with the Bakery Confectionery Tobacco Workers and Grain Millers’ (BCTGM) union over a new contract and hopes to reach a deal soon.
“The company’s last, best and final offer does not achieve what our members are asking for; a predictable pathway to fully vested, fully benefitted employment for all employees with no concessions,” the BCTGM said in a press release.
The BCTGM and Kellogg did not immediately respond to the Daily Caller News Foundation’s requests for comment.
Kellogg is one of many companies experiencing labor strikes as workers demand higher pay and better benefits amid growing labor shortages and inflation.
Striking workers at John Deere rejected a second contract offer Tuesday that would have increased their pay by 10%. John Deere facilities across the U.S. first went on strike on Oct. 14, with the United Auto Workers union saying the company “failed to present an agreement that met our members’ demands and needs.”
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