For the past two months, employees at Kellogg’s cereal plants in several states have been on strike, pushing for better benefits and working conditions. Recently, the Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union, representing the workers, successfully negotiated a new contract, putting an end to the strike.
The updated contract, as stated by Kellogg, includes a wage increase of $1.10 for all 14,000 represented employees and enhancements to their benefits. A significant change is the adjustment to the company’s pay tier system. Previously, there were two tiers with newer employees earning less and receiving fewer benefits. The new contract offers a clearer and faster progression to the higher pay tier while ensuring decent benefits for employees in lower tiers.
Kellogg CEO Steve Cahillane expressed satisfaction in reaching an agreement to bring employees back to work, emphasizing that the contract is favorable without any concessions. Union President Anthony Shelton also welcomed the agreement as a positive move without compromising on their demands.
Kellogg strike ends as workers approve new labor agreement https://t.co/aZHdERLAaS pic.twitter.com/QrJg02iZfK
— Reuters (@Reuters) December 21, 2021
Despite challenges like the COVID-19 pandemic and labor shortages, the union members sustained operations at the cereal plants effectively, giving them leverage in negotiations. Kellogg had considered hiring permanent replacements for striking workers, but this move was met with disapproval internally and externally. President Joe Biden even criticized the company’s approach, defending the negotiation process.
