(Reuters) -Kellogg Co said on Tuesday it plans to hire permanent replacements for some of its U.S. breakfast cereal plant workers who are on strike, after lengthy negotiations with the union again fell apart. The workers went on strike on Oct. 5 after their contracts expired the previous day, as negotiations over payment and benefits stalled due to differences between Kellogg and about 1,400 union members at its cereal plants. Union members previously said Kellogg proposed a two-tier employment system that did not offer its temporary workers, who make up 30% of its workforce, a pathway to become permanent workers with better benefits and pay.
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About 1,400 workers across the four cereal plants have been on strike since Oct.5, and the company has warned of a hit to earnings if it prolongs. Kellogg had demanded that workers give up quality health care, retirement benefits, and holiday and vacation pay, the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) International Union had said at the start of the strike. BCTGM was not immediately available for comment.