Kellogg Company employees have voted to ratify a tentative 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.
Highlights of the new five-year collective bargaining agreement include no permanent two-tier system and a clear path to regular full-time employment.
It also includes no plant shut downs through October 2026 and maintaining cost of living raises.
Earlier this month, The Associated Press reported:
Kellogg’s said most workers at its cereal plants earned an average of $120,000 last year although 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 was 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 have been on strike since October 5.
