|BATTLE CREEK, Mich., Aug. 1, 2015 /PRNewswire/ — Kellogg Company and the Bakery, Confectionery, Tobacco and Grain Millers (BCTGM) union today announced the ratification of a new five-year master contract that covers the company’s four Ready-To-Eat Cereal (RTEC) plants in Battle Creek, MI; Memphis, TN; Omaha, NE; and Lancaster, PA. The current contract is scheduled to expire on Oct. 3.
The master contract ratification vote comes after Kellogg and BCTGM leadership successfully reached a tentative agreement on July 24, 2015. Approximately 1,300 employees are covered under this new contract, which will allow the company to further invest in innovation and brand growth.
“We are pleased we were able to work with the BCTGM to agree on a contract that helps ensure our U.S. plants will continue to be more competitive in our global manufacturing network,” said Alistair Hirst, Sr. Vice President, Kellogg Global Supply Chain. “For our employees and for Kellogg, we remain committed to the future of this business and focusing together on producing the high-quality, nutritious foods that give people a better start to their day.”
The contract narrows the gap in labor costs at the company’s RTEC locations across its manufacturing network and in the industry. It includes significant concessions on future healthcare costs and there will be no retiree health care for new hires. There also will be a new transitional employee classification that will provide more competitive wages and benefits along with the opportunity to reach regular employee status.
Finally, while the contract includes Kellogg’s commitment to keep all four of its U.S. RTEC plants open for at least the next five years, we have the flexibility to optimize production lines as the category continues to evolve.
“This fair and competitive contract recognizes the important work of Kellogg’s employees and helps to ensure the long-term success of the company’s RTEC plants and business,” Hirst continued.