Kellogg Company Publicly Addresses Cereal Contract Negotiations and Strike

Rhea-AI Summary

Kellogg Company has addressed the ongoing labor contract negotiations with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union concerning four U.S. Ready to Eat Cereal plants. The company expressed concern over the union's decision to strike without a member vote on their latest offer dated October 1. Kellogg emphasized that their proposals maintain industry-leading pay and benefits and include significant wage increases. The company seeks to return to negotiations promptly, ensuring employees can resume work without job relocation threats.

Positive

• Proposals maintain industry-leading pay and benefits.
• Average 2020 earnings for hourly RTEC employees were $120,000, with many earning $120,000 to $200,000.
• Current proposals offer significant increases in wages, benefits, and retirement.

Negative

• Union has rejected proposals aimed at improving work schedules.
• Concerns raised regarding the union's misrepresentation of contract terms.

BATTLE CREEK, Mich., Oct. 12, 2021 /PRNewswire/ -- Kellogg Company today is publicly addressing the terms of its master labor contract negotiations with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union for four of its Ready to Eat Cereal (RTEC) plants.

"We value all of our employees and recognize their efforts, especially during this global pandemic," said Kris Bahner, Kellogg Company spokesperson. "Being away from work puts our people and their families in a difficult position and can create financial hardships. We are deeply concerned that the Union at our four U.S. cereal plants has decided to strike and what that means for our employees, and especially concerned that the Union struck without allowing members to vote on our Oct. 1 offer."

Highlights of Kellogg's Comprehensive Offer  

Kellogg's number one priority is to get back to the negotiations table and reach a contract, so employees can get back to their jobs and their lives. "Our proposals have been grossly misrepresented by the Union in statements to their membership and to media, and we want our employees to have all the information they need to make informed decisions for themselves and their families," Bahner said.

Myths vs. Facts 

Myth: Kellogg is asking employees to give up health care, retirement benefits, and holiday and vacation pay.

Fact: Most employees working under this contract have industry-leading pay and benefits, and all have above-market wages and retirement. The average 2020 earnings for the majority of our hourly RTEC employees was $120,000 and more than one-third earned between $120,000 and $200,000. Most also have unparalleled, no-cost comprehensive health insurance.

Less senior employees have the same health insurance plan that salaried Kellogg employees have, except they pay much lower employee contributions than salaried employees, a construct that was agreed upon with the union in 2015. The current proposal not only maintains industry-leading pay and benefits, but offers significant increases in wages, benefits and retirement.

Myth: The Union claims they are forced to work seven days a week with significant amounts of overtime.

Fact:  In 2020, Kellogg cereal manufacturing employees worked an average of 52 - 56 hours/week, however 90% of the time, employees volunteered for the extra hours. Regardless, unplanned overtime is disruptive and is a problem Kellogg is eager to solve. The Company proposed adding a fourth crew to enable more time off. Unfortunately, the union has rejected any proposals that might change current work schedules.

Myth: The Union alleges that Kellogg has threatened to move jobs to Mexico if they don't agree to our proposals.

Fact: This is completely false. Kellogg has not proposed moving any cereal volume or jobs outside of the U.S. as part of these negotiations.

"Kellogg is ready, willing and able to continue negotiations at any time," Bahner said. "In the meantime, we have a responsibility to our business, customers and consumers to run our plants, despite the strike. We are continuing operations with other resources and hope that we can reach an agreement soon."

For more information and regular updates, please visit Kellogg's negotiations website at kelloggsnegotiations.com.  For video message statements, please visit the links below.

Full video statement

Benefits, Wages, Retirement video statement

Overtime video statement

Moving jobs to Mexico statement

About Kellogg Company

At Kellogg Company (NYSE: K), our vision is a good and just world where people are not just fed but fulfilled. We are creating better days and a place at the table for everyone through our trusted food brands. Our beloved brands include Pringles®, Cheez-It®, Special K®, Kellogg's Frosted Flakes®, Pop-Tarts®, Kellogg's Corn Flakes®, Rice Krispies®, Eggo®, Mini-Wheats®, Kashi®, RXBAR®, MorningStar Farms® and more. Net sales in 2020 were approximately $13.8 billion, comprised principally of snacks and convenience foods like cereal, frozen foods, and noodles. As part of our Kellogg's® Better Days purpose platform, we're helping to end hunger and are committed to creating Better Days for 3 billion people by the end of 2030. Visit www.KelloggCompany.com or www.OpenforBreakfast.com.

 

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SOURCE Kellogg Company

FAQ

What is the status of Kellogg's labor contract negotiations as of October 2021?

As of October 2021, Kellogg is in negotiations with the union for four RTEC plants and is concerned over a strike initiated without a member vote on their proposed contract.

How much did Kellogg's hourly RTEC employees earn on average in 2020?

In 2020, the average earnings for Kellogg's hourly RTEC employees were approximately $120,000.

What is Kellogg's position on the claims made by the union regarding employee benefits?

Kellogg states that most employees have industry-leading pay and benefits and that they are not asking employees to give up health care or retirement benefits.

Did Kellogg threaten to move jobs to Mexico during negotiations?

Kellogg has denied any claims of threatening to move jobs or cereal volume to Mexico as part of the negotiations.

What efforts is Kellogg making to resolve the strike situation?

Kellogg is ready to continue negotiations at any time and is working to ensure operations run smoothly despite the strike.