By Simon Druker
Kellogg's cereal boxes are seen on display. Striking workers at four of the company's cereal plants rejected the latest contract proposal on Tuesday. File Photo Monika Graff/UPI | License Photo
Dec. 7 (UPI) -- Already on strike for more than two months, a majority of workers at four Kellogg Company cereal plants rejected the company's latest contract proposal Tuesday.
Approximately 1,400 workers have been on strike since Oct. 5.
BLAMING THE STRIKERS FOR HIRING SCABS
They rejected the latest five-year offer negotiated by their union, forcing the multinational food manufacturing company to hire some permanent replacements.
Temporary replacements have already been working at the four affected plants, which are located in Nebraska, Pennsylvania, Tennessee and Michigan, where the company's head office is also located.
The company says that no further bargaining is currently scheduled.
"We have no plans to meet. Given that the strike will continue, our focus must continue to be on executing the next phase of our contingency plan," reads a statement on the company's website.
Kellogg's has approximately 34,000 workers worldwide.
"We have no plans to meet. Given that the strike will continue, our focus must continue to be on executing the next phase of our contingency plan," reads a statement on the company's website.
Kellogg's has approximately 34,000 workers worldwide.
Kellogg to permanently replace striking workers as union rejects new contract
1,400 union members went on strike on Oct. 5 as contracts expired and talks over payment and benefits stalled
Author of the article:
Reuters
Praveen Paramasivam
Publishing date:Dec 07, 2021 •
1,400 union members went on strike on Oct. 5 as contracts expired and talks over payment and benefits stalled
Author of the article:
Reuters
Praveen Paramasivam
Publishing date:Dec 07, 2021 •
A group of union workers from Kellogg's picket outside the cereal maker's headquarters as they remain on strike in Battle Creek, Michigan, U.S., October 21, 2021.
PHOTO BY EMILY ELCONIN/REUTERS FILES
Kellogg Co. said on Tuesday a majority of its U.S. cereal plant workers have voted against a new five-year contract, forcing it to hire permanent replacements as employees extend a strike that started more than two months ago.
Temporary replacements have already been working at its cereal plants in Michigan, Nebraska, Pennsylvania and Tennessee where 1,400 union members went on strike on Oct. 5 as their contracts expired and talks over payment and benefits stalled.
“While certainly not the result we had hoped for, we must take the necessary steps to ensure business continuity,” Kellogg said in a statement.
The company said “unrealistic expectations” created by the union meant none of its six offers, including the last one that proposed wage increases and allowed all transitional employees with four or more years of service to move to legacy positions, came to fruition.
Union members have said the proposed two-tier system, in which transitional employees get lesser pay and benefits compared to longer tenured workers would take power away from the union by removing the cap on how many lower tier employees it could have.
“They have made a ‘clear path’ — but while it is clear — it is too long and not fair to many,” Jeffrey Jens, a union member, said.
Several politicians including Democratic senators Bernie Sanders and Elizabeth Warren have voiced their support for the union, while many customers have said they are boycotting Kellogg’s products.
Kellogg is one of the several major U.S. firms that has faced worker strikes in the recent past as the labour market tightens. The company has also warned of a hit to profit from the strike, but was yet to quantify it.
Last month, farm equipment maker Deere & Co reached an agreement with striking workers.
Kellogg Co. said on Tuesday a majority of its U.S. cereal plant workers have voted against a new five-year contract, forcing it to hire permanent replacements as employees extend a strike that started more than two months ago.
Temporary replacements have already been working at its cereal plants in Michigan, Nebraska, Pennsylvania and Tennessee where 1,400 union members went on strike on Oct. 5 as their contracts expired and talks over payment and benefits stalled.
“While certainly not the result we had hoped for, we must take the necessary steps to ensure business continuity,” Kellogg said in a statement.
The company said “unrealistic expectations” created by the union meant none of its six offers, including the last one that proposed wage increases and allowed all transitional employees with four or more years of service to move to legacy positions, came to fruition.
Union members have said the proposed two-tier system, in which transitional employees get lesser pay and benefits compared to longer tenured workers would take power away from the union by removing the cap on how many lower tier employees it could have.
“They have made a ‘clear path’ — but while it is clear — it is too long and not fair to many,” Jeffrey Jens, a union member, said.
Several politicians including Democratic senators Bernie Sanders and Elizabeth Warren have voiced their support for the union, while many customers have said they are boycotting Kellogg’s products.
Kellogg is one of the several major U.S. firms that has faced worker strikes in the recent past as the labour market tightens. The company has also warned of a hit to profit from the strike, but was yet to quantify it.
Last month, farm equipment maker Deere & Co reached an agreement with striking workers.
'Unbreakable Solidarity': Kellogg's Workers Reject Contract That Would Leave New Employees Out of Benefits
"We're not willing to sell our souls for our future employees that are going to work side by side with us but not get the same pay or benefits."
Kellogg's Cereal plant workers demonstrate in front of the plant on October 7, 2021 in Battle Creek, Michigan. Workers at Kellogg’s cereal plants are striking over the loss of premium health care, holiday and vacation pay, and reduced retirement benefits. (Photo: Rey Del Rio/Getty Images)
Noting that Kellogg's is struggling to produce its cereals amid the strike, despite its hiring of non-union members, More Perfect Union said, "The Kellogg’s strike is working."
"Every single worker deserves safety and dignity," tweeted Ismail Smith-Wade-El, a member of Lancaster, Pennsylvania's city council. "Solidarity forever."
"We're not willing to sell our souls for our future employees that are going to work side by side with us but not get the same pay or benefits."
Kellogg's Cereal plant workers demonstrate in front of the plant on October 7, 2021 in Battle Creek, Michigan. Workers at Kellogg’s cereal plants are striking over the loss of premium health care, holiday and vacation pay, and reduced retirement benefits. (Photo: Rey Del Rio/Getty Images)
December 7, 2021
Labor advocates applauded 1,400 Kellogg's cereal plant workers for "courageously" rejecting the company's latest contract offer and demanding an end to the two-tier pay structure they say divides workers and disempowers their union.
"Removing the two-tier language in general is what we're after. That's our fight."
Labor advocates applauded 1,400 Kellogg's cereal plant workers for "courageously" rejecting the company's latest contract offer and demanding an end to the two-tier pay structure they say divides workers and disempowers their union.
"Removing the two-tier language in general is what we're after. That's our fight."
The contract would have classified all employees with four or more years experience at Kellogg's as "legacy" workers, while newer workers would still be classified as "transitional" employees. Legacy employees would have received a 3% pay increase in the first year and cost of living raises in subsequent years, and all employees would have gotten raises upon ratification—but veteran plant workers rejected the continuation of the two-tier structure, which would have left newer employees out of some benefits.
A veteran plant worker in Battle Creek, Michigan told More Perfect Union, a progressive media organization focused on labor rights, that the two-tier system is the union's "big sticking point"—even though legacy employees would have gotten increased pension benefits with the new contract.
"Removing the two-tier language in general is what we're after," said the employee. "That's our fight... We're not willing to sell our souls for our future employees that are going to work side by side with us but not get the same pay or benefits."
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), which represents the workers, said Tuesday it supported the workers' decision.
"The members have spoken," said BCTGM President Anthony Shelton in a statement. "The strike continues. The International Union will continue to provide full support to our striking Kellogg’s members... Solidarity is critical to this fight."
More Perfect Union said the vote demonstrated "unbreakable solidarity" among the workers.
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'Kellogg's On Strrr-ike': 1,400 Workers Walk Off Job to Protect Benefits
Kenny Stancil
The workers voted against the contract despite Kellogg's plan to begin hiring permanent replacement employees—a strike-breaking tactic that would be outlawed by the PRO Act—and send jobs to Mexico.
"The company made $3.6 billion this year," More Perfect Union noted on Twitter. "Its CEO was given a $11 million paycheck last year."
Progressives urged supporters of workers' rights to boycott Kellogg's products and donate to strike funds to help workers and their families as the strike continues through the holiday season.
A veteran plant worker in Battle Creek, Michigan told More Perfect Union, a progressive media organization focused on labor rights, that the two-tier system is the union's "big sticking point"—even though legacy employees would have gotten increased pension benefits with the new contract.
"Removing the two-tier language in general is what we're after," said the employee. "That's our fight... We're not willing to sell our souls for our future employees that are going to work side by side with us but not get the same pay or benefits."
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), which represents the workers, said Tuesday it supported the workers' decision.
"The members have spoken," said BCTGM President Anthony Shelton in a statement. "The strike continues. The International Union will continue to provide full support to our striking Kellogg’s members... Solidarity is critical to this fight."
More Perfect Union said the vote demonstrated "unbreakable solidarity" among the workers.
Related Content
'Kellogg's On Strrr-ike': 1,400 Workers Walk Off Job to Protect Benefits
Kenny Stancil
The workers voted against the contract despite Kellogg's plan to begin hiring permanent replacement employees—a strike-breaking tactic that would be outlawed by the PRO Act—and send jobs to Mexico.
"The company made $3.6 billion this year," More Perfect Union noted on Twitter. "Its CEO was given a $11 million paycheck last year."
Progressives urged supporters of workers' rights to boycott Kellogg's products and donate to strike funds to help workers and their families as the strike continues through the holiday season.
Noting that Kellogg's is struggling to produce its cereals amid the strike, despite its hiring of non-union members, More Perfect Union said, "The Kellogg’s strike is working."
"Every single worker deserves safety and dignity," tweeted Ismail Smith-Wade-El, a member of Lancaster, Pennsylvania's city council. "Solidarity forever."
Kellogg's union WORKERS rejects deal with 3 per cent raises to extend strike
Kirk Peters waves to passing cars as they honk in support of Kellogg's workers on strike along I Street in Omaha, Neb. on Tuesday, Dec. 7, 2021.
(Lily Smith/Omaha World-Herald via AP)
Josh Funk
The Associated Press
Published Dec. 7, 2021
U.S. Kellogg's workers rejected a contract offer Tuesday that would have provided 3 per cent raises, so 1,400 workers at the company's four U.S. cereal plants will remain on strike.
The Bakery, Confectionary, Tobacco Workers and Grain Millers International Union said an overwhelming majority of workers voted down the five-year offer that would have also provided cost of living adjustments in the later years of the deal and preserved the workers' current health care benefits.
The workers have been on strike since Oct. 5 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.
"The members have spoken. The strike continues," union President Anthony Shelton said. "The International Union will continue to provide full support to our striking Kellogg's members."
Kellogg's said it will now move forward with plans to start hiring permanent replacements for the striking workers. The company has already been using salaried employees and outside workers to keep the plants operating during the strike.
"While certainly not the result we had hoped for, we must take the necessary steps to ensure business continuity," said Chris Hood, president of Kellogg North America. "We have an obligation to our customers and consumers to continue to provide the cereals that they know and love."
Rutgers University professor Todd Vachon, who teaches classes about labor relations, said he's not sure the company will be able to hire enough workers to replace the ones who are out on strike in the current economy, and Kellogg's may have a hard time finding people willing to cross a picket line.
"By voting `no,' the workers are making a strong statement that they are not satisfied by the agreement, but they are also signaling they believe they have the leverage that's needed to win more," Vachon said.
One of the sticking points in the negotiations has been the company's two-tiered system of wages that givers newer workers at the plants less pay and fewer benefits. As many as 30% of the workforce at the cereal plants have been receiving those lower wages. The Battle Creek-based company said the new contract will allow all workers with at least four years of experience to move up to the higher legacy pay level immediately and some additional workers would move up in the later years of the contract.
Dan Osborn, who is president of the local Omaha union, said the company's offer wouldn't let enough workers move up to the higher pay level quickly, so some newer workers might have to wait as much as nine years to reach the higher legacy pay level. The proposed contract would have limited the number of workers who could move up in pay each year to 3% of a plant's total headcount.
"Ultimately, we don't want to leave anyone behind. And we want a secure future," Osborn said.
Union members would also like to see the company offer bigger raises to its mechanics and electricians so Kellogg's can better compete for those workers, Osborn said.
Victor Chen, a sociologist at Virginia Commonwealth University who studies labor, said he understands why the union is taking a stand against the two-tiered wage system because it is a divisive issue within its ranks.
"A union depends on the solidarity of its members," Chen said. "When you have two-tiered systems -- which have become popular in corporate America -- you're weakening that solidarity. It turns workers against each other."
At times during the strike, the disagreements between the company and the union turned bitter.
Kellogg's went to court in Omaha in November to secure an order that set guidelines for how workers behaved on the picket line because the company said striking workers were blocking the plant's entrances and intimidating replacement workers. Union officials denied any improper behavior during the strike and said police never cited workers for causing problems.
But the workers have been holding out for higher wages because they believe the ongoing worker shortages across the country give them an advantage during the negotiations. Workers at the cereal plants have said they believed they deserve significant raises because they routinely work more than 80 hours a week, and they kept the plants running throughout the coronavirus pandemic.
Earlier this year, about 600 food workers also went on strike at a Frito-Lay plant in Topeka, Kansas, and 1,000 others walked off the job at five Nabisco plants across the U.S. At meatpacking plants across the country labor unions have been successfully negotiating significant raises for employees.
In another recent strike, over 10,000 Deere workers secured 10% raises and improved benefits but those gains came after the workers remained on strike for a month and rejected two offers from the company. The offer that Kellogg's workers rejected was the first one they have voted on since the strike began.
Josh Funk
The Associated Press
Published Dec. 7, 2021
U.S. Kellogg's workers rejected a contract offer Tuesday that would have provided 3 per cent raises, so 1,400 workers at the company's four U.S. cereal plants will remain on strike.
The Bakery, Confectionary, Tobacco Workers and Grain Millers International Union said an overwhelming majority of workers voted down the five-year offer that would have also provided cost of living adjustments in the later years of the deal and preserved the workers' current health care benefits.
The workers have been on strike since Oct. 5 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.
"The members have spoken. The strike continues," union President Anthony Shelton said. "The International Union will continue to provide full support to our striking Kellogg's members."
Kellogg's said it will now move forward with plans to start hiring permanent replacements for the striking workers. The company has already been using salaried employees and outside workers to keep the plants operating during the strike.
"While certainly not the result we had hoped for, we must take the necessary steps to ensure business continuity," said Chris Hood, president of Kellogg North America. "We have an obligation to our customers and consumers to continue to provide the cereals that they know and love."
Rutgers University professor Todd Vachon, who teaches classes about labor relations, said he's not sure the company will be able to hire enough workers to replace the ones who are out on strike in the current economy, and Kellogg's may have a hard time finding people willing to cross a picket line.
"By voting `no,' the workers are making a strong statement that they are not satisfied by the agreement, but they are also signaling they believe they have the leverage that's needed to win more," Vachon said.
One of the sticking points in the negotiations has been the company's two-tiered system of wages that givers newer workers at the plants less pay and fewer benefits. As many as 30% of the workforce at the cereal plants have been receiving those lower wages. The Battle Creek-based company said the new contract will allow all workers with at least four years of experience to move up to the higher legacy pay level immediately and some additional workers would move up in the later years of the contract.
Dan Osborn, who is president of the local Omaha union, said the company's offer wouldn't let enough workers move up to the higher pay level quickly, so some newer workers might have to wait as much as nine years to reach the higher legacy pay level. The proposed contract would have limited the number of workers who could move up in pay each year to 3% of a plant's total headcount.
"Ultimately, we don't want to leave anyone behind. And we want a secure future," Osborn said.
Union members would also like to see the company offer bigger raises to its mechanics and electricians so Kellogg's can better compete for those workers, Osborn said.
Victor Chen, a sociologist at Virginia Commonwealth University who studies labor, said he understands why the union is taking a stand against the two-tiered wage system because it is a divisive issue within its ranks.
"A union depends on the solidarity of its members," Chen said. "When you have two-tiered systems -- which have become popular in corporate America -- you're weakening that solidarity. It turns workers against each other."
At times during the strike, the disagreements between the company and the union turned bitter.
Kellogg's went to court in Omaha in November to secure an order that set guidelines for how workers behaved on the picket line because the company said striking workers were blocking the plant's entrances and intimidating replacement workers. Union officials denied any improper behavior during the strike and said police never cited workers for causing problems.
But the workers have been holding out for higher wages because they believe the ongoing worker shortages across the country give them an advantage during the negotiations. Workers at the cereal plants have said they believed they deserve significant raises because they routinely work more than 80 hours a week, and they kept the plants running throughout the coronavirus pandemic.
Earlier this year, about 600 food workers also went on strike at a Frito-Lay plant in Topeka, Kansas, and 1,000 others walked off the job at five Nabisco plants across the U.S. At meatpacking plants across the country labor unions have been successfully negotiating significant raises for employees.
In another recent strike, over 10,000 Deere workers secured 10% raises and improved benefits but those gains came after the workers remained on strike for a month and rejected two offers from the company. The offer that Kellogg's workers rejected was the first one they have voted on since the strike began.
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