Kellogg’s Workers To Vote On New Deal That Offers A $1.10 Hour Raise

Kellogg’s workers made headlines recently when they rejected a tentative agreement that included very modest raise of 3%.

With inflation at over 6%, it’s no surprise that they voted no on it. John Deere workers, for example, received a 10% raise after going out on strike.

Today, a new deal was announced with Kellogg that offers a $1.10 an hour raise among other things.

The striking workers will have chance to accept or reject the new agreement when they vote on it on Sunday.

Yahoo News reports:

“Kellogg’s has reached a new tentative agreement with its 1,400 striking cereal plant workers that could bring an end to the strike that began Oct. 5.

Members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union will vote on the new offer that includes cost-of-living adjustments and a $1.10 per hour raise for all employees on Sunday. Last week, the union overwhelmingly rejected a previous offer from the Battle Creek, Michigan-based company that included 3% raises but only some employees would have received cost-of-living adjustments.

‘We value all of our employees. They have enabled Kellogg to provide food to Americans for more than 115 years,’ said Kellogg Co. Chairman and CEO Steve Cahillane. ‘We are hopeful our employees will vote to ratify this contract and return to work.’

The results of the contract vote are expected to be released Tuesday. Union officials declined to comment Thursday on the details of the new five-year deal.

Kellogg’s said most workers at its cereal plants earned an average of $120,000 last year although union members have said they work more than 80 hours a week to earn that, and those wages are only available to longtime workers. Under the two-tiered pay system the company uses, newer workers are paid less and receive fewer benefits.

That pay system has been a sticking point during the negotiations, and Kellogg’s offer didn’t change on that part of the contract. The company has said it will allow all workers with at least four years of experience move up to the higher legacy pay level as part of this contract. Union officials previously said that plan wouldn’t let other workers move up quickly enough. The company has also proposed eliminating the current 30% cap on the number of workers at each plant who receive the lower wages.

The new agreement will also preserve employees health care benefits.”

For the rest of the story, visit Yahoo News here.

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