Kellogg’s announced that it will hire new permanent workers for its cereal workers. The purpose is to replace the union employees who are on strike for more than past two months.
The Kellogg’s workers began the strike on 5th October 2021. 1400 employees of four cereal plants are on strike since then. The negotiations were going on between the management and the union representatives. Last week, the workers rejected a deal offered to them after two months of negotiations. Considering the unsuccessful negotiations, Kellogg’s management announced that it will hire permanent replacement workers.
Two-Tier Compensation System
BECKY SULLIVAN, BYLINE: Kellogg’s workers are facing many issues which they want to be addresses. However, one of the biggest issue for the striking workers in Kellogg’s two tier compensation system. Employees hired before 2015 are getting higher wages and better benefits as compared to the newly hired workers. The union, which is called the Bakery, Confectionery, Tobacco Workers and Grain Millers Union says that they want an end to the current system of compensation model. The option they suggest is to at least create a way that newer employees at least get an opportunity to better pay.
Workers Voted Against the Proposed Deal
A couple of weeks back, the union and the company reached a tentative agreement. It was a five-year deal with raises for employees and pathway to move between pay tiers. However, the workers overwhelmingly voted against the deal and it finally was rejected. United States allows employers to permanently replace strikers in many cases. However, the dynamics of the strike and politics of the day will make it tougher for Kellogg’s.
Kellogg’s decision of hiring replacement workers caused an irk at the White House. The federal government is trying hard to provide better opportunities for its workers in attempt to economic recovery. In a rare rebuke of a company, United Stated President Joe Biden termed this move as an existential attack on the union and its members’ jobs and livelihood.
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