Economy Thread

[K85]

Fuck...... and there goes more house value here....




Kellogg's delivered a major body blow for London Tuesday morning, telling angry workers that it is shutting down its London facility.

The high-tech cereal plant in London employed more than 500 workers. Workers were summoned to a meeting this morning at the Four Points Sheraton in London.

"Kellogg's has been my whole life," a despondent Mike Coulter said after the meeting. Coulter worked at the London plant for 30 years.

"If anybody is hiring any cereal makers, here we are," Coulter said.

Fellow worker Bruce Monteith said Kellogg employees sensed bad news was coming.

"They don't call a meeting like this for anything good. They are not handing out Christmas bonuses or turkeys."

Lambton-Kent-Middlesex MPP Monte McNaughton called the Kellogg plant closure a sad day.

"It is a tragedy for London and Southwestern Ontario," said McNaughton who has regularly decried the lack of a plan by the provincial government for Ontario's manufacturing sector.

In its latest quarterly report, the Kellogg revealed it was launching Project K and setting aside more than $1 billion to increase efficiency. The program was to include plant consolidations.

The Kellogg move falls on the heels of the announcement in November that Heinz was shutting its Leamington plant, it's second largest in the world, with the lost of 740 jobs.

Kellogg announced in November that it was cutting its London workforce by 20% - 110 full-time unionized workers and 11 managers were shown the door.

Kellogg makes about 27 cereals in London. Among its best known products are Corn Flakes, Frosted Flakes, Bran Buds, All Bran, Bran Flakes and Raisin Bran.

Warning flags for the London plant were raised by the union in 2011 when Kellogg Canada invested $43 million to upgrade its Belleville plant.

At the time it was feared the upgrades in Belleville could bring that plant in competition with the one in London.

Ontario taxpayers put $4.5 million toward the Belleville expansion.

McNaughton said the Ontario government shouldn't be putting money into one plant at the expense of another community.

"It is picking winners and losers. It is the wrong approach," he said.

What they said.



“We are taking action to ensure our manufacturing network is operating the right number of plants and production lines – in the right locations – to better meet current and future production needs and the evolving needs of our customers.”

John Bryant – CEO Kellogg's



“We are in a competitive world and we are seeing things unfold. We have a lot off of losses in Ward 4. It's part of the economic times. If the City of London can do anything to help we will put this on the front burner. It's time for new ideas and new laws to create employment.”

Ward 4 councilor Stephen Orser



“It's time to start looking and move on, I guess. I'm 54 in April. Where am I going to find work, I'm hoping

they will do the right thing and bridge to retirement and help us out.”

Jamie Kelly, 26 years with Kellogg's



“We were told a month ago there would some layoffs and cutbacks but everything would be okay. Now they tell us right before Christmas.

Why don't they cut those people at the top that are sitting on their bonuses. Where are we going to go? There's no jobs around here”

Cindy Shilder, a single mom with seven years at Kellogg's



“We knew sales were soft and something was going to happen.

There will be a trickle-down effect on the whole area. There's seem to be a mandate to bring a lot of business back to the US.”

- Bruce Monteith, 27 years with Kellogg's



“A lot of it is corporate greed. You read the Kellogg's profit statements and they are making more money than they ever did, but it's never good enough and it's usually at the expense of the worker.

Steve Addison – former Sterling Trucks worker who went to Kellogg four years ago.





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Kellogg's released a statement shortly after 10 am. Here it is in full:
Kellogg Company Announces Changes to Global Supply Chain Network

Dec 10, 2013

Kellogg Company today announced several changes to optimize its global manufacturing network as part of the company’s recently announced Project K four-year efficiency and effectiveness program. Project K will unlock cost savings that Kellogg will invest in its strategy and grow its business. Through Project K, Kellogg is strengthening its existing business in core markets, increasing growth in developing and emerging markets, and driving increased value-added innovation.

Supply Chain infrastructure changes announced today include:

Closure of the Snacks plant in Charmhaven, Australia
Expansion of the Rayong, Thailand cereal and snacks plant, and
Closure of the ready-to-eat cereal plant in London, Ontario, Canada.

“As with any project of this scope and one that impacts people, these are difficult decisions,” said John Bryant, President and CEO, Kellogg Company. “We are very mindful of the impact these changes will have – particularly to our employees. As our employees and others would expect from Kellogg, we will help those who are impacted through their transitions.”

The London plant is expected to close by the end of 2014 and the Charmhaven plant is expected to close by late 2014. The Rayong expansion will be fully operational by early 2015.

“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” said Bryant. “To that end, we are taking action to ensure our manufacturing network is operating the right number of plants and production lines – in the right locations – to better meet current and future production needs and the evolving needs of our customers.”