Striking Kellogg's workers Michael Rodarte, Sue Griffin, Michael Elliott, Eric Bates and Mark Gonzalez stand outside the Omaha, Neb., cereal plant on, Dec. 2, 2021. Kellogg's has reached a new tentative agreement on Thursday, Dec. 16, 2021, with its 1,400 striking cereal plant workers that could bring an end to the strike that began Oct. 5. Members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union will vote on the new offer that includes cost-of-living adjustments and a $1.10 per hour raise for all employees on Sunday, Dec. 19. Last week, the union overwhelmingly rejected a previous offer from the Battle Creek, Michigan-based company. (AP Photo/Josh Funk, File)
By Josh Funk
Kellogg's has reached a new tentative agreement with its 1,400 striking cereal plant workers that could bring an end to the strike that began Oct. 5.
Members of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union will vote on the new offer that includes cost-of-living adjustments and a $1.10 per hour raise for all employees on Sunday. Last week, the union overwhelmingly rejected a previous offer from the Battle Creek, Michigan-based company.
“We value all of our employees. They have enabled Kellogg to provide food to Americans for more than 115 years,” said Kellogg Co. Chairman and CEO Steve Cahillane. “We are hopeful our employees will vote to ratify this contract and return to work.”
The results of the contract vote are expected to be released Tuesday. Union officials didn't immediately respond Thursday to questions about the agreement.
Kellogg’s said most workers at its cereal plants earned an average of $120,000 last year although union members have said they work more than 80 hours a week to earn that, and those wages are only available to longtime workers. Under the two-tiered pay system the company uses, newer workers are paid less and receive fewer benefits.
That pay system has been a sticking point during the negotiations, and Kellogg’s offer didn’t change on that part of the contract. The company has said it will allow all workers with at least four years of experience move up to the higher legacy pay level as part of this contract. Union officials previously said that plan wouldn’t let other workers move up quickly enough. The company has also proposed eliminating the current 30% cap on the number of workers at each plant who receive the lower wages.
The new agreement will also preserve employees health care benefits.
The strike includes four plants in Battle Creek; Omaha, Nebraska; Lancaster, Pennsylvania; and Memphis, Tennessee that make all of Kellogg’s well-known brands of cereal, including Frosted Flakes, Rice Krispies and Apple Jacks.
The workers have been holding out for more partly because they believe the ongoing worker shortages across the country gave them leverage in the negotiations. And workers have said they deserve raises after keeping the plants running throughout the coronavirus pandemic.
Throughout the strike Kellogg's has been trying to keep its plants operating with salaried employees and outside workers, and the company said late last month that it planned to start hiring permanent replacements for the striking workers.
President Joe Biden sharply criticized Kellogg's for threatening to permanently replace workers, saying that doing that would undermine the collective bargaining process.
At times during the strike, the disagreements between the company and the union have turned bitter. Kellogg's went to court in Omaha in November to secure an order that set guidelines for how workers behaved on the picket line because the company said striking workers were blocking the plant’s entrances and intimidating replacement workers. Union officials denied any improper behavior during the strike and said police never cited workers for causing problems.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
