The union of Kellogg Company’s employees in the US has ended the 11-week protest by voting in favour of a new contract.
The multinational cereal manufacturing company informed that the new contract offers better terms for transitional employees along with wage hikes across the board. However, the highlight of the new agreement is the inclusion of no-permanent two-tier system. With this system, the proposal of which had triggered the protest, lower tier workers will earn less than longer-tenured workers.
The union managed to get the Company to promise that it will not shut down any plants till October 2026, ensure regular full-time employment along with a noticeable hike in the pension multiplier.
This new contract will hold true for the next five years and fulfil the demands of the protesting employees.
The employees forced Kellogg’s hand. The Company had earlier even considered permanently replacing the workers on strike, which drew criticism from President Joe Biden as well.
Protesting the proposed changes, around 1,400 workers of the Company had started a strike on October 5, demanding re-negotiations on payment and benefits, halting production at a time when the labour market was really tight.
The monumental strike also turned into a political affair, as senator and prominent American political figure, Bernie Sanders, rallied with the striking workers in Michigan. The strikes had also led to calls for boycott of Kellogg’s products by consumers on social media.