Bakery, Confectionery, Tobacco Workers and Grain Millers International Union

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Kellogg Workers Ratify Contract After Being on Strike Since October

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About 1,400 striking Kellogg workers have ratified a new contract, their union said Tuesday, ending a strike that began in early October and affected four of the company’s U.S. cereal plants.“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,” Anthony Shelton, the president of the workers’ union, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, said in a statement. “This agreement makes gains and does not include any concessions.”Steve Cahillane, the company’s chairman and chief executive, said in a statement that he was pleased that the workers approved the deal. “We look forward to their return and continuing to produce our beloved cereal brands for our customers and consumers,” he added.The strike had become especially contentious after workers rejected an agreement on a five-year contract between their union and the company in early December, and the company announced that it would move ahead with hiring permanent replacement workers.President Biden waded into the dispute a few days later, saying in a statement that the plan to replace workers was “deeply troubling” and calling it “an existential attack on the union and its members’ jobs and livelihoods.”The company and the union announced the second tentative agreement the next week, just before Senator Bernie Sanders, an independent from Vermont, was scheduled to hold a rally on behalf of workers in Battle Creek, Mich., home of the company’s headquarters and one of the cereal plants where workers had walked off the job.The contract dispute revolved partly around the company’s two-tier compensation system, in which workers hired after 2015 typically received lower wages and less generous benefits than veteran workers. The company has said that the longer-tenured workers make more than $35 an hour on average, while the more recent workers average just under $22 per hour.Veteran workers had complained that the two-tier system put downward pressure on their wages and benefits because they could effectively be outvoted or replaced with newer, cheaper workers.Under the agreement that workers rejected in early December, the company would have immediately granted veteran pay and benefit status to all workers with four or more years’ experience at Kellogg. It would have also granted veteran status to a number equal to 3 percent of a plant’s head count in each year of the contract.The initial agreement would have given veteran workers a 3 percent wage increase in the first year and cost-of-living adjustments.In the agreement that workers just approved, the proposal for converting newer workers to veteran status remained unchanged, but the company expanded cost-of-living wage adjustments to cover all employees in each year of the contract, according to a Kellogg spokeswoman.Newer workers will see their wages immediately rise to just over $24 an hour and veteran workers will immediately receive a wage increase of $1.10 per hour. More

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    Biden Assails Kellogg’s Plan to Replace Striking Workers

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    President Biden on Friday waded into a strike involving 1,400 employees at four Kellogg plants, whom the company said it planned to permanently replace after workers voted down a proposed contract this week.“I am deeply troubled by reports of Kellogg’s plans to permanently replace striking workers,” Mr. Biden said in a statement, adding that “permanently replacing striking workers is an existential attack on the union and its members’ jobs and livelihoods.”The strike began on Oct. 5 and has largely focused on the company’s two-tier compensation system, in which employees hired after 2015 typically receive lower wages and less generous benefits than veteran workers. Many veteran Kellogg workers, who the company says earn about $35 per hour on average, believe that adding lower-paid workers puts downward pressure on their wages.Kellogg raised the possibility of hiring permanent replacements in November. The company and the union last week reached a tentative agreement in which the company would lift a cap on the number of workers in the lower tier, which was 30 percent under the previous contract. In exchange, the company agreed to move all workers with four or more years experience into the veteran tier, as well as an amount equivalent to 3 percent of workers at its plants in each of the five years of the contract.On Tuesday, the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, which represents the workers, said its members had “overwhelmingly voted” against the deal. In response to the result, Kellogg said that it would “hire permanent replacement employees in positions vacated by striking workers.”A Kellogg spokeswoman, Kris Bahner, said Friday that the company had posted job listings for permanent replacement roles in each of its four locations and that its hiring process was “fully operational.” The statement added: “Interest in the roles has been strong at all four plants, as expected. We expect some of the new hires to start with the company very soon.”After Mr. Biden’s statement, Ms. Bahner said that the company was “ready, willing and able to negotiate with the union” and that it agreed with the president “that this needs to be solved at the bargaining table.” Ms. Bahner indicated that the company had moved ahead with permanent replacements out of an obligation to consumers and other employees.Permanently replacing workers who are striking over economic issues like wages and benefits is legal, but Democrats, including Mr. Biden, have sought to outlaw the practice through the Protecting the Right to Organize Act, or PRO Act. The House approved the bill in March but it has stalled in the Senate.“I have long opposed permanent striker replacements and I strongly support legislation that would ban that practice,” Mr. Biden said in his statement Friday. “Such action undermines the critical role collective bargaining plays in providing workers a voice and the opportunity to improve their lives.”The statement is not the first time Mr. Biden has appeared to weigh in on a prominent labor action. The president appeared in a video during a union campaign at an Amazon warehouse in Alabama this year warning that “there should be no intimidation, no coercion, no threats, no anti-union propaganda” — an unusual interjection by a president during a union election.Mr. Biden has made no secret of his support for unions over the years. He quickly ousted government officials disliked by unions, reversed Trump-era rules that softened worker protections and signed legislation that allocated tens of billions of dollars to stabilize union pension plans.His $2 trillion climate and social policy bill, pending in the Senate, includes numerous pro-labor measures, including incentives for employers to offer union-scale wages on wind and solar projects. More