Negotiations Update
October 7, 2021
For ongoing negotiations updates, proposals information and FAQs, please visit https://kelloggsnegotiations.com/
October 5, 2021
The Union ordered a strike in our 4 U.S. RTEC plants effective October 5. We are surprised and disappointed that the Union ordered a strike without engaging in any negotiations since Wednesday, September 29. Despite the Union’s efforts to frustrate the bargaining process, we provided a Comprehensive Offer of Settlement directly to the Unions at approximately 10am Friday, October 1 – by both email and hand-delivery – and the Union has failed to respond in any way to the Company’s proposal other than to deny receiving it, which is obviously untrue.
We have activated our contingency plan and will do everything we can to protect the RTEC plants and this business, so after this event employees have jobs to return to which will continue to provide industry-leading wages and benefits. We have told the Union that we remain ready and willing to bargain should they want to return to the table.
October 1, 2021
Comprehensive Offer for Settlement Presented to Union
The Union continues to refuse to meet with the Company, saying that we must agree to their position on one issue – their demand for 100% free health care and pension for Transitional employees. If we don’t agree, they will not meet with us on any issues.
This morning, the Company emailed and hand-delivered its “Comprehensive Offer for Settlement” where we put our best foot forward to try to reach an agreement. The Company proposal is compelling in many ways, with significant enhancements for all employees and a first-ever one week off with pay from 10/5-10/11 if it is voted and ratified by midnight 10/4. (You can click through to the proposal highlights document on this page, below the negotiations updates.)
The Union has refused to meet with us to review or respond to our Comprehensive Offer for Settlement, and has not made any counterproposals but we remain ready, willing and able to bargain.
At 3:30 PM the union gave their strike notice and informed us that their bargaining committee intends to leave tomorrow morning.
September 30, 2021
At about 9am EST this morning, the Company told the Union it had new proposals with additional wage and benefit increases. The Union said it is not willing to meet unless we agree to transitional progression to full legacy benefits (healthcare/pension). As you know, we have proposed a clear 7-year progression for Transitionals to full legacy wage rates, but not legacy benefits. As a result of the Union’s statement, the bargaining committees did not meet.
The Company told the Union it remains ready and willing to negotiate further and has room to move on many issues. As of 5 PM EST, we haven’t heard back from them.
September 29, 2021
Although the Union continues to call the Company’s current proposals “take-aways”, “concessionary” or “status quo,” the proposals actually provide graduation to full legacy wages for transitionals within 7 years, as well as increases in 401k and other benefits. They also include continuation of 100% Company paid health plan, 4% wage increases, and $2 pension increase for Legacy employees.
The parties met briefly this morning and the Union withdrew one of the minor proposals it spent most of yesterday pushing and rejected all company proposals.
The Company again asked the Union to take a hard look at its proposals and bring back something more realistic.
September 28, 2021
During today’s negotiations, at 10:30 am, the Company provided a comprehensive counterproposal on all issues, which featured additional pay and benefits. At 1pm, the Union responded with two counterproposals on peripheral language issues, withdrew two proposals, and continued to reject the Company’s core substantive proposals. Late this afternoon, we exchanged proposals on peripheral language issues and adjourned for the day.
The Union characterized a competitor’s strategy as agreeing to all Union demands, then the competitor closed 3 plants in the last 6 years. The Union stated the competitor’s approach was better than Kellogg’s -- which hasn’t closed a BCTGM-represented U.S. cereal plant in 25 years.
September 25, 2021
During last week’s negotiations, the parties discussed various proposals, the decline of cereal sales and profitability, and the need to be responsible in order to improve the sustainability of this business and these jobs. The week’s negotiations concluded at 2:30pm on Friday because the Union’s spokesperson had a conference call. The Company asked the Union to meet Saturday and the Union declined. Negotiations will resume Monday morning at 9am.
