Striking Kellogg workers could return after Christmas as tentative deal reached

Dec 16 (Reuters) – Kellogg Co (K.N) and the union representing striking workers at its U.S. breakfast cereal plants have reached a tentative agreement on a new five-year contract that could pave the way for the employees to return to work two days after Christmas.

The 1,400 workers have been on strike since Oct. 5 and earlier this month overwhelmingly rejected the last tentative deal after which Kellogg said it would permanently replace the striking workers, a move criticized by U.S. President Joe Biden. read more

The union said on Thursday progress has been made on a few key issues from the previous proposal, including increases in the cost of living wages and removal of the term “legacy employee.”

“Transitional employees have an accelerated, defined path to legacy wages and benefits as compared to the current contract,” Kellogg said.

Voting on the new deal will be held on Sunday and votes will be counted in Kingston, Maryland on Tuesday, according to Dan Osborn, president of the local union in Omaha.

If the workers vote in favor of the proposal, plants in Michigan, Nebraska, Pennsylvania and Tennessee could function at full capacity again. Those plants are currently being run by temporary hires.

“The fact that they (Kellogg) have suggested yet another agreement does highlight the fact that the workers really have the upper hand at this point,” said Ileen DeVault, a labor history professor at Cornell University.

The retiree healthcare coverage cap and the limit on the number of lower-tier employees, however, continue to be a sticking point in the negotiations.

“Increasing the cap for premiums on retiree health insurance would prevent workers from accruing too much medical debt during the golden years,” Osborn said.

Striking workers have also said a two-tier employee system proposed by Kellogg, in which transitional employees get lesser pay and benefits compared with longer-tenured workers, would gradually reduce the union’s power.

Source: https://www.reuters.com/business/kellogg-reaches-another-tentative-deal-with-union-union-president-2021-12-16/

World Economic Magazine

Recent Posts

Global Fashion Summit 2026, Copenhagen Sets Its Vision on Building Resilient Futures

Global Fashion Agenda has revealed Building Resilient Futures as the theme for the Global Fashion…

2 days ago

Huawei Wins Best Technology Provider Award at Electricity Connect 2025

The Electricity Connect 2025 conference in Jakarta spotlighted Indonesia’s energy transition, with Huawei recognised as…

2 days ago

3D Printed Boats Prepare to Rewrite the Future of Marine Manufacturing

After years of material science breakthroughs, a team proved that a rugged, sea-ready composite could…

3 days ago

TAHO Raises 3.5 Million Seed Round to Redefine Compute Infrastructure for the AI Era

TAHO, a Venice-based compute startup founded by ex-Meta and Google engineers, raised $3.5 million in…

5 days ago

Squirrel AI Founder Haoyang Li Spotlights Global Talent Transformation

The 9th Future Investment Initiative in Riyadh spotlighted how AI is rapidly redefining global growth,…

6 days ago

Onward Robotics Names Brendon Bielat Chief Product Officer

Onward Robotics has appointed Brendon Bielat as Chief Product Officer, strengthening its leadership team as…

1 week ago