Market Daily

Market Daily

Kellogg’s Union Members Have Ratified a New Agreement after almost 3 Months of Strike

Source: Kellogg’s

The Kellogg’s strike finally came to an end.

Kellogg Co.’s striking workers at breakfast cereal plants have sought ratification of an agreement to end the 11-week work cessation.

The confirmation of the new five-year deal for 1,400 workers involved has been released after a tentative deal last week. Kellogg has threatened to remove the workers on strike from their jobs in Tennessee, Pennsylvania, Nebraska, and Michigan, receiving negative commentary from the current administration.

“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,” said President of Bakery, Confectionery, Tobacco Workers, Grain Millers International Union Anthony Shelton Tuesday in a statement. “This agreement makes gains and does not include any concessions.” 

The company said in a statement that the ratified deal “furthers our employees’ leading wages and benefits, with immediate, across-the-board wage increases and enhanced benefits for all.” 

“We are pleased that we have reached an agreement that brings our cereal employees back to work,” stated Steve Cahillane, CEO of Kellogg Co. “We look forward to their return and continuing to produce our beloved cereal brands for our customers and consumers.”

The controversial two-tier benefits system has been a major issue for workers, with those hired after 2015 paid lower than their legacy counterparts. However as per the collective negotiating deal that was ratified during this weekend’s referendum vote there would no longer be such an arrangement in place. 

The union also said that it had closed a deal of no plant closures through October 26, “a clear path to regular full-time employment” and a “significant increase in the pension multiplier.”

The strike by workers at four Kellogg plants finally ended after almost 3 months, with an agreement that both parties have reached and agreed upon.

Opinions expressed by Market Daily contributors are their own.