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Kellogg Workers Reject Latest Contract Offer

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Kellogg Company  (K) - Get Free Report cereal plant workers in the U.S. went on strike on October 5 when the company's five-year master contract with the Bakery Confectionery, Tobacco Workers, and Grain Millers International Union expired.

The latest contract offer by Kellogg which would have provided 3% raises, cost of living adjustments in the later years of the deal, and preserved the workers’ current health care benefits was overwhelmingly rejected by union members.

The labor dispute involves several pay and benefits issues such as the loss of premium health care, holiday and vacation pay, and reduced retirement benefits, and principally the company’s two-tiered system of wages that givers newer workers at the plants less pay and fewer benefits.  

Kellogg’s said it will now move forward with plans to start hiring permanent replacements for the striking workers and has already been using salaried employees and outside workers to keep the plants operating during the strike.

Anthony Shelton, president of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union stated, “The members have spoken. The strike continues, The International Union will continue to provide full support to our striking Kellogg’s members.”

Daniel Osborn, president of the local union in Omaha added that for much of that time workers were putting in 12-hour shifts, seven days a week to keep up production while so many people were out because of the coronavirus. "The level we were working at is unsustainable," Osborn said.

Other food workers have gone on strike recently, including those from Frito-Lay and Nabisco, have put more pressure on the already disrupted supply chains that are increasing prices and slowing delivery of many household goods.

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