Kellogg strike to end as workers vote in favor of new contract - union president


Bernie Sanders shows up to support striking Kellogg workers

Tue, December 21, 2021
By Praveen Paramasivam

(Reuters) - A majority of workers at Kellogg Co's breakfast cereal plants voted in favor of a new contract that offers better terms for transitional employees as well as wage increases, Daniel Osborn, president of the local union in Omaha, said on Tuesday.

The new five-year deal ends months-long stalemate between Kellogg and its factory workers in Michigan, Nebraska, Pennsylvania and Tennessee that had prompted the company to warn of permanently replacing striking workers, drawing criticism from President Joe Biden.


The union representing around 1,400 workers said last week the latest tentative deal had showed some progress on a few key issues from the previous proposal, including increases in the cost of living wages and removal of the term "legacy employee."

A union leader had said they could return to work two days after Christmas, nearly three months from when they went on a strike.

Kellogg had said the latest deal offered its lower-tier workers, known as transitional employees, "an accelerated, defined path to legacy wages and benefits as compared to the current contract".

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Anil D'Silva)

Kellogg's, union reach deal to end cereal plant strikes


Signs are held during a rally where US Senator Bernie Sanders spoke to striking Kellogg's workers in Battle Creek, Michigan, on December 17, 2021 (AFP/SETH HERALD)


Tue, December 21, 2021


Kellogg's workers have agreed to end strikes at US cereal plants that had attracted attention from the White House and other politicians amid a wave of labor actions in the country, the company announced Tuesday.

The strike began October 5 at Kellogg's cereal plants in Michigan, Pennsylvania, Nebraska and Tennessee, with workers objecting to the company's two-tiered wage structure, among other grievances.

The firm known best for its breakfast cereals drew intense criticism including from President Joe Biden after it threatened to replace striking workers.

But the company said workers voted in favor of the deal reached last week with the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union (BCTGM) that covers about 1,400 workers and will see wage increases and improved benefits.

"We are pleased that we have reached an agreement that brings our cereal employees back to work," Kellogg's Chairman and CEO Steve Cahillane said in a statement.

"We look forward to their return and continuing to produce our beloved cereal brands for our customers and consumers."

BCTGM International President Anthony Shelton welcomed the deal, saying, "Our striking members at Kellogg's ready-to-eat cereal production facilities courageously stood their ground and sacrificed so much in order to achieve a fair contract."

The Kellogg's dispute came amid a wave of threatened and actual strikes across American businesses in recent months, which have seen workers at businesses ranging from hospitals to factories threaten to walk off the job.

The action at the cereal factories drew the attention of prominent Washington Democrats after Kellogg's moved to replace striking workers, with Biden saying he was "deeply troubled" by the decision.

Progressive Senator Bernie Sanders attended a rally with striking workers in Michigan last week, cheering their stand against what he called "corporate greed."

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Strike at Kellogg comes to a close; workers to return Monday


Striking Kellogg's workers stand outside the company's cereal plant in Omaha, Neb., Thursday, Dec. 2, 2021. The company and the union announced a tentative agreement Thursday that could end the strike that began Oct. 5. (AP Photo/ Josh Funk)

The Associated Press
Mon, December 20, 2021

NEW YORK (AP) — A strike at Kellogg that has gone on since early October has ended after workers voted to ratify a new labor contract at the company's four U.S. cereal plants.

The contract covers approximately 1,400 workers represented by the union at plants in Michigan, Nebraska, Pennsylvania and Tennessee.

Kellogg said Tuesday that the new contract provides immediate, across the board wage increases and enhanced benefits for all. It also provides an accelerated, defined path to top-tier wages, a major sticking point for workers, and benefits for transitional employees.


“We are pleased that we have reached an agreement that brings our cereal employees back to work,” CEO Steve Cahillane said in a prepared statement.

Workers that have been on strike since Oct. 5 will return to work on Monday, Kellogg said, after the holiday.

The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said the contract is a win for workers.

“This agreement makes gains and does not include any concessions,” union President Anthony Shelton said in a prepared statement.

Members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union voted on the new offer over the weekend. The offer includes cost-of-living adjustments and a $1.10 per hour raise for all employees.

Earlier this month, an overwhelming majority of workers voted down a five-year offer that would have provided 3% raises and cost of living adjustments in coming years to most, but not all of the workers.

Workers have been on strike at plants in Battle Creek, Michigan; Omaha, Nebraska; Lancaster, Pennsylvania; and Memphis, Tennessee. They make all of the company’s well-known brands of cereal, including Apple Jacks and Frosted Flakes.

Kellogg’s said most workers at its cereal plants earned an average of $120,000 last year, though union members have said they work more than 80 hours a week to earn that, and those wages are only available to longtime workers. Under the two-tiered pay system the company uses, newer workers are paid less and receive fewer benefits.

That pay system has been a sticking point during the negotiations, and Kellogg’s offer didn’t change on that part of the contract. The company has said it will allow all workers with at least four years of experience move up to the higher legacy pay level as part of this contract. Union officials previously said that plan wouldn’t let other workers move up quickly enough. The company has also proposed eliminating the current 30% cap on the number of workers at each plant who receive the lower wages.

The workers remained unified during the strike amid worker shortages across the country, which may have given them more leverage in negotiations. And the said raises were overdue after workers kept the plants running throughout the coronavirus pandemic.

Throughout the strike Kellogg has been trying to keep its plants operating with salaried employees and outside workers, and the company said late last month that it planned to start hiring permanent replacements for the striking workers.

President Joe Biden sharply criticized Kellogg’s for threatening to permanently replace workers, saying that doing that would undermine the collective bargaining process.

Shares of Kellogg Co., based in Battle Creek, Michigan, fell more than 2% Tuesday.