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Article

3 Dec 2021

Author:
Maria Ponnezhath, Thomson Reuters Foundation

USA: Kelloggs reaches tentative agreement with union on new contract after two months of strikes

"Kellogg reaches tentative deal with union after 2 months of strike", 3 December 2021

Kellogg Co said...it has reached an agreement with the union on a new five-year contract for its employees at a few breakfast-cereal plants in the United States, potentially bringing a near two-month long strike to an end.

The tentative agreement, reached after multiple rounds of talks with the union, includes wage increases and benefits for all employees and better terms for transitional employees.

The latest agreement allows for all transitional employees with four or more years of service to move to legacy positions.

Union members had previously opposed Kellogg's two-tier employment system that did not offer transitional workers a pathway to become legacy staff...

The new deal, which will be voted on by Kellogg employees on Dec. 5, will also offer permanent employees with better post-retirement benefits.

During lengthy negotiations with union members, Kellogg had hired permanent replacements for some of its plant workers on strike, and also warned of a dent to its annual profit due to the disruption...

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