BATTLE CREEK, MI — More than 1,400 workers at Kellogg, the leading cereal and snack food manufacturer, have been on strike since early October, pushing back against what they say are unfair wages and benefits. But today, that demonstration ended as employees ratified a new contract. The agreement affects the 1,400 union-represented employees, who work at four of the company’s US cereal plants in Battle Creek, MI; Omaha, NE; Lancaster, PA; and Memphis, TN.
The five-year contract with the Bakery, Confectionary, Tobacco Workers and Grain Millers (BCTGM) International Union “includes across-the-board wage increases and enhanced benefits for all, including an accelerated path to legacy wages and benefits for transitional employees,” according to the company.
This includes an immediate wage raise to $24 an hour for newer workers and an increase of $1.10 per hour for veteran workers.
The new agreement shuts down Kellogg’s plans to expand its two-tiered wage system, which categorized employees as either “legacy” or “transitional.” Under the prior contract, Kellogg paid transitional employees about $12 per hour less and provided fewer benefits compared to legacy employees, according to HuffPost, but only 30% of its employees could be classified as transitional. The union strike successfully prevented the company’s attempt to remove the cap, which the union alleged would cause “a majority of employees to become classified as transitional.”
This strike comes on the heels of many others this year, including BCTGM-represented workers who went on strike against Frito-Lay and Nabisco.
Wages have remained stagnant for decades, according to pre-pandemic research. This fact — laid bare by COVID-19— especially affects “essential workers” who have kept the US economy running and families fed during lockdowns over the past two years. This heightened awareness has brought conversations about fair wages into the mainstream, and many companies have had to re-evaluate the working conditions they provide.
This strike comes on the heels of many others this year, including BCTGM-represented workers who went on strike against Frito-Lay and Nabisco.
As workers forward the fight for their rights, food manufacturers may find a more competitive labor market. It’s up to those employers to lead with innovative practices that make workers want to stay.
“We are pleased that we have reached an agreement that brings our cereal employees back to work,” said Steve Cahillane, chairman and CEO of Kellogg. “We look forward to their return and continuing to produce our beloved cereal brands for our customers and consumers.”
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