Kellogg's Workers End Strike, Union Says No Concessions Were Made - Kellanova (NYSE:K)

Members of the labor union that have been on strike against Kellogg’s K since Oct. 5 have accepted a collective bargaining agreement and will end their walkout.

What Happened: Approximately 1,400 Kellogg’s employees at the company’s cereal plants in Memphis, Omaha, Lancaster, Pennsylvania, and Battle Creek, Michigan, approved the agreement after rejected two previous pacts that were negotiated between the company and their union, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM).

“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 BCTGM President Anthony Shelton. “This agreement makes gains and does not include any concessions.”

Kellogg’s Chairman and CEO Steve Cahillane welcomed the end of the strike. In a press statement, Cahillane said, “We look forward to their return and continuing to produce our beloved cereal brands for our customers and consumers.”

Why It Matters: The strike came after a year of unsuccessful contract negotiations between the company and the union, with Shelton accusing Kellogg’s of forcing its workers to “give up quality health care, retirement benefits, and holiday and vacation pay.” He claimed the company threatened to send their jobs to Mexico, “if workers do not accept outrageous proposals that take away protections that workers have had for decades.”

During the course of the strike, Kellogg’s threatened to fire the employees on the picket line and replace them with new workers. President Joe Biden publicly berated Kellogg’s for its threat, calling it “an existential attack on the union and its members’ jobs and livelihoods.”

The contract dispute was centered on Kellogg’s two-tier compensation system that provided lower wages and fewer benefits to workers hired after 2015.

In the approved agreement, workers hired after 2015 will see a wage hike to over $24 an hour and workers hired prior to that cutoff year will get a $1.10 per hour wage increase.

Photo: Mike Mozart / Flickr Creative Commons

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