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Kellogg, Union Reach Tentative Deal For New Labor Contract For Cereal Plants

Cereal maker Kellogg Co. (K) said it has reached a tentative agreement with the union for a new five-year labor contract.

Kellogg and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union are engaged in negotiations to finalize a master labor contract for its four U.S. Ready to Eat Cereal or RTEC plants.

The tentative agreement covers 1,400 employees at the company's U.S. cereal plants in Battle Creek, Michigan, Lancaster, Pennsylvania, Memphis, Tennessee, and Omaha, Nebraska.

The union has stated that employees will be voting the tentative deal on Sunday, December 5. The results would be known early in the week.

Among other things, the tentative deal between the company and the union includes an accelerated, defined path to legacy wages and benefits for transitional employees, and wage increases and enhanced benefits for all.

Federal Mediation and Conciliation Service assisted in the negotiations.

In early October, employees at these U.S cereal plants went on strike demanding better wages and facilities.

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