About 1,400 workers have been on strike since Oct. 5 at four Kellogg cereal plants in the United States over a dispute that has revolved around the company’s two-tier compensation structure.
The strike began on Oct. 5 and has largely revolved around the company’s two-tier compensation structure, agreed to in 2015, in which newer employees earn lower wages and receive less generous benefits than veteran workers. Under the previous contract, the lower tier could include up to 30 percent of workers.
According to a summary provided by the company, the new agreement would have immediately moved all employees with four or more years at Kellogg into the veteran tier. A group of lower-tier employees equivalent to 3 percent of a plant’s head count would move into the veteran tier in each year of the contract.
“We are disappointed that the tentative agreement for a master contract over our four U.S. cereal plants was not ratified by employees,” Kellogg said in a statement.
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