Kellogg workers approve labour contract, ending 11-week strike | Business and Economy News


Workers at the cereal plants voted for a contract that offers better terms for temp employees and wage increases, Kellogg said on Tuesday.

Workers at Kellogg Co’s United States breakfast cereal plants voted in favour of a new contract that offers better terms for transitional employees and across-the-board wage increases, ending a weeks-long strike, the company said on Tuesday.

The five-year contract ends the stalemate between the Froot Loops maker and its factory workers in Michigan, Nebraska, Pennsylvania and Tennessee that had prompted the company to warn of permanently replacing striking employees, drawing criticism from President Joe Biden.

The union said the highlights of the new agreement included no permanent two-tier system, in which lower-tier workers make less than longer-tenured workers.

“This agreement makes gains and does not include any concessions,” said Anthony Shelton, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.

Around 1,400 workers went on a strike since October 5 after their contracts expired, as negotiations about payment and benefits stalled amid a tightening labour market.

“It will be difficult to go back. There is a lot of tarnished relationships that we will work diligently to repair,” said Dan Osborn, president of the local union in Omaha, adding the employees would return to work on December 27.

The labour strike saw Senator Bernie Sanders rally with the striking workers in Michigan, while it also triggered calls for a boycott of Kellogg’s products by consumers on social media platforms Twitter and Reddit.

“Well deserved, Kellogg’s workers! Also happy I can buy Cheez-its again,” a Twitter user said on Tuesday, while another tweeted, “Froot Loops party!”

Shares of the Eggo waffles maker declined 3 percent in late-morning trade.


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