The breakfast cereal giant said in a statement the ratified deal “furthers our employees’ leading wages and benefits with immediate, across-the-board wage increases and enhanced benefits for all.”
The new five-year contract provides the 1,400 employees from the company’s plants in Michigan, Nebraska, Pennsylvania and Tennessee with cost of living adjustments and a $1.10 per hour raise, as well as expanded health care and retirement benefits. Additionally, it allows all workers with four years of experience to move up to the coveted higher ‘legacy’ wage and benefits level.
“We are pleased that we have reached an agreement that brings our cereal employees back to work,” said Kellogg’s CEO Steve Cahillane.
“We look forward to their return and continuing to produce our beloved cereal brands for our customers and consumers.”
'Sacrificed so much'
Anthony Shelton, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers International (BCTGM) Union, added, “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.
“This agreement makes gains and does not include any concessions.”
Earlier this month, Kellogg workers had rejected an agreement that would have given a 3% raise and cost of living adjustments to some but not all workers, a sticking point for the BCTGM, which opposed Kellogg’s two-tier wage system.