October 12, 2021
Kellogg’s proposals have been grossly misrepresented by the union in statements to their membership and to media. We are publicly sharing the facts. These videos and our Myths vs Facts information help set the record straight.
Kellogg Company and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union are engaged in negotiations to finalize a master labor contract for our four U.S. Ready to Eat Cereal (RTEC) plants. We are disappointed by the union’s decision to strike. Kellogg provides compensation and benefits for our U.S. RTEC employees that are among the industry’s best. Our offer includes increases to pay and benefits for our employees, while helping us meet the challenges of the changing cereal business.
The majority of employees working under this Master Contract enjoy a CPG industry-leading level of pay and benefits, which include above-market wages and pension or 401k. The average 2020 earnings for the majority of hourly RTEC employees was $120,000.
Most employees under this contract have unparalleled, no-cost comprehensive health insurance, while less senior employees have the same health insurance as our salaried employees, but with much lower employee contributions.
Our proposals not only maintain these industry-leading level of pay and benefits, but offer significant increases in wages, benefits and retirement.
The Company has not proposed moving any RTEC volume or jobs outside of the U.S. as part of these negotiations.
We remain committed to achieving a fair and competitive contract that recognizes the important work of our employees and helps ensure the long-term success of our plants and the Company. We remain ready, willing and able to continue negotiations and hope we can reach an agreement soon.
In the meantime, we are implementing contingency plans to mitigate supply disruptions, including using salaried employees and third-party resources to produce food.