Kellogg Co. has announced that it has reached a second tentative contract agreement with the union representing four cereal plants that have been on strike since early October.
The agreement with the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union requires no concession from the union, Kellogg said in a statement. It expands health care benefits, and increases pay and pension benefits, the company says.
A previous agreement was rejected by the rank-and-file on Dec. 6. The major sticking point was Kellogg’s desire to maintain the two-tier system whereby newer employees receive lower pay and worse benefits than “legacy” ones. Kellogg’s statement said that the new contract would give newer employees an “accelerated” path to “legacy wages and benefits.”
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The contract must still be voted on by the approximately 1,400 employees on strike. The Bakery, Confectionary, Tobacco Workers and Grain Millers International Union could not immediately be reached for comment.
