The worst fears of Kellogg workers became reality Tuesday when the company announced its London plant is toast.

Workers heard the grim news from company officials at a brief meeting at a south London hotel.

“Kellogg has been my whole life,” a despondent Mike Coulter said after learning a job he’s had for 30 years will disappear.

Kellogg dropped the bombshell five weeks after laying off 110 unionized workers and firing 11 managers because demand for breakfast cereals has dropped.

“We were told a month ago there would some layoffs and cutbacks but everything would be OK. Now they tell us right before Christmas,” said Cindy Hilder, a single mom who’s worked at Kellogg for seven years.

“Where are we going to go? There’s no jobs around here.”

The company said the London plant will wind down in the next year and close by the end of 2014. More than 500 union members and 65 non-union employees will lose their jobs.

The loss of the Kellogg plant is huge blow for London that’s had the dubious distinction of having the highest big-city unemployment rate in Canada for stretches since the summer of 2011.

Kellogg is so engrained in London that a street next to the Dundas St. plant was renamed Kellogg Lane. Generations of Londoners toured the massive facility and smelled the breakfast cereals made within its walls.

Political and business leaders — well aware of Kellogg’s cachet as a blue-chip company and generous employer — expressed their shock and disappointment.

“This a huge loss for our community,” London North Centre Liberal MPP Deb Matthews said. “Like many Londoners, I have friends who have made their livelihood and raised their families by working in this plant.”

Bob Martin, president of Local 154G of the Bakery, Confectionery Tobacco Workers and Grain Millers, said workers were devastated to learn they will lose jobs that pay between $20 and $30 an hour.

Workers are eligible for a full pension if their age and years of service equals 85, Martin said. The union will try to negotiate a severance deal with company, he said.

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

Kellogg said it’s also closing a plant in Australia and expanding a plant in Thailand.

“We have a compelling business need to better align our assets with marketplace trends and customer requirements,” John Bryant, president of Kellogg Company, said in a news release.

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

Production from London will be moved to Kellogg plants in Michigan and Pennsylvania will, Martin said.

What the plants makes

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. Most of the raw materials are imported from the United States.

What they said

“It is a tragedy for London an Southwestern Ontario,” said Lambton-Kent-Middlesex PC MPP Monte McNaughton, noting the provincial government put $4.5 million into the expansion of the Kellogg Belleville plant.

“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, chief executive Kellogg Company

“We’re in a competitive world and we’re seeing things unfold. We have a lot 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 Coun. Stephen Orser

“This a huge loss for our community. Like many Londoners, I have friends who have made their livelihood and raised their families by working in this plant.”

London North Centre Liberal MPP Deb Matthews, who said the provincial government will set up a action centre to assist Kellogg workers

Kellogg workers

“For them to pull the trigger on closing us is a complete shock. Our plant has worked with company for a long time to reduce costs so we could stay here in London.”

Bob Martin, president of Local 154G of the Bakery, Confectionery Tobacco Workers and Grain Millers Union

“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

“We were told a month ago there would some layoffs and cutbacks but everything would be OK. Now they tell us right before Christmas. . . . Where are we going to go? There’s no jobs around here”

Cindy Hilder, a single mom with seven years at Kellogg

“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 U.S.”

Bruce Monteith, 27 years

“A lot of it is corporate greed. You read the Kellogg 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, a former Sterling Trucks worker who went to Kellogg four years ago

“Kellogg has been my whole life. . . . If anybody is hiring any cereal makers, here we are.”

Mike Coulter, 30 years.

PLANT HISTORY

1907 – The Battle Creek Toasted Corn Flake Company establishes a Canadian head office and plant in London at Grey and Adelaide streets

1913 – moves to Dundas St. E and Festubert (later Kellogg) Lane

1924 – renamed Kellogg Company of Canada

1985 – undergoes a $223-million upgrade and expansion

1987 – wins London Chamber of Commerce Business Achievement Award

2007 – Kellogg opens Belleville plant

2009 – About 480 union workers are locked out for 25 days in a labour dispute

Nov. 5, 2013 - Company announces 110 unionized workers will be laid off Jan. 1, 2014. Eleven managers let go immediately

Dec. 10 - Company announces the plant will close in 2014

hank.daniszewski@sunmedia.ca

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