Kellogg Strikes Tentative Agreement with Union

Dec 17, 2021 By MarketDepth

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Kellogg (NYSE: K) revealed it has reached a second tentative agreement with the union representing 1,400 employees, which have been on strike since the beginning of October. However, the strike will continue until the agreement is fully settled. The striking workers will place their vote regarding the issue on Sunday.

Deal Potential Before Christmas

In early December, union members declined a possible deal with the company.  But the multinational food manufacturing company is hopeful that this deal will be accepted by next week and ultimately end the strike.

“We value all of our employees. They have enabled Kellogg to provide food to Americans for more than 115 years. We are hopeful our employees will vote to ratify this contract and return to work.”

Kellogg CEO Steve Cahillane

Union officials have refused to comment on the matter or the details of the newly presented five-year deal. Numerous public officials, such as President Joe Biden and Senator Bernie Sanders, have shown their support toward the union.

Over Working

Kellogg’s disclosed that its cereal plant workers earned an average of USD120,000 last year. Nevertheless, union members have said that they need to work over 80 hours per week in order to make that amount, and that salary is only granted to longtime employees. Amid the two-tiered pay system that the company uses, new workers are paid less and are given less benefits.

Kellogg is one of several companies to experience strong rank-and-file opposition to possible labor deals reached by their union delegate.