Workers at the Kellogg Company reached an agreement, ending an 11-week strike, the union representing the employees announced Dec. 21. We've gathered articles on the news from SHRM Online and other media outlets.
New Contract
The new five-year contract includes wage increases and cost-of-living adjustments in year one, according to a company statement. The contract also expands health care and retirement benefits.
"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 Bakery, Confectionery, Tobacco Workers and Grain Millers International Union President Anthony Shelton.
Contested Two-Tiered System
The workers had opposed a two-tiered benefits system that paid workers hired after 2015 at a lower rate than "legacy" employees. The union said the ratified collective bargaining agreement resulted in "no permanent two-tiered system," meaning recent hires could progress to "legacy" status. The union added that it had secured a pledge of no plant closings through October 2026, "a clear path to regular full-time employment" and a "significant increase in the pension multiplier."
(NPR)
No Striking Workers Have Been Replaced
"No striking workers have been replaced," said a Kellogg spokesperson when asked about the company's replacement worker efforts. After strikers rejected the previous deal, the company had said it would "hire permanent replacement employees in positions vacated by striking workers"—a statement that drew criticism from President Joe Biden.
(CNN), (SHRM Online) and (NBC News)
Pay and Benefits Were Contested
More than 1,000 strikers had gone on strike to oppose the loss of premium health care and holiday and vacation pay, as well as reduced retirement benefits. The workers also opposed the outsourcing of jobs to Mexico.
"We are disappointed by the union's decision to strike," a company spokesperson had said. "Kellogg provides compensation and benefits for our U.S. ready-to-eat-cereal employees that are among the industry's best."
Kellogg said most workers at its cereal plants earned an average of $120,000 last year, though union members have said they work more than 80 hours a week to earn that, and those wages are only available to long-time workers.
(AP via NPR) and (NBC News)
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