On Thursday, Kellogg Co., the Battle Creek, Michigan-headquartered American multinational food manufacturing company, had said in a statement that the century-old food maker had reached a tentative agreement with its workers’ union over a five-year contract what in effect would wind-down a nearly two-month long labors’ strike at its cereal plants, becoming the latest in a string of US hypermarket chains which had vied to vent out a way to cutting a deal with their workers’ unions in context of a much-squeezed US labor market with layoffs hovering to a 34-year low.
On top of that, Kellogg Co’s latest contract with its workers’ union that involved a raise in pay-offs of employees alongside an increase in pension benefits for full-time workers, comes over the heels of a Deere & Co move to reach a similar accord with its workers’ union following a six-week long strike.
In the matter of the fact, Kellogg’s cereal plants’ workers in the US states of Michigan, Nebraska, Pennsylvania and Tennessee took their stances over picketing lines on October 5 after expiration of their contracts, while discussions over payout and benefits had hit a standstill as a clattering conflict of opinions grew between the company and its 1,400 union members.
Kellogg Co reaches tentative deal with workers’ union
According to the terms of a new deal what Kellogg Co had cut with its workers’ unions, all temporary Kellogg Co workers with four or more years in service would be provided with permanent positions alongside a better pay-off and other benefits, erasing an issue of deep discontent as union members had long been opposing Kellogg Co’s prior employment system that lacked pathways for temporary workers to become permanent stuffs.
Temporary workers accounted for roughly a 30 per cent of Kellogg Co’s entire workforce. Nonetheless, the new deal, which also would include a better post-retirement benefit, would be presented to Kellogg employees on a December 5 vote.