Kellogg Reaches Tentative Agreement With Union

Kellogg Co. (K) said that it has reached a recommended tentative agreement for a five-year labor contract with the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union and the four local unions representing 1,400 employees at its U.S. cereal plants in Battle Creek, Michigan, Lancaster, Pennsylvania State, Memphis, Tennessee and Omaha, Neb.

The agreement includes increased pay for all of employees, including across the board wage increases and COLA (Cost-of-Living Adjustment) starting Year 1 of the agreement.

The majority of the company's U.S. cereal plant employees have pension benefits - a rarity these days - while others are provided 401(k) plans. The agreement increases those pension benefits.

Kellogg and the union have been engaged in negotiations since September 8 to finalize a master labor contract for its four U.S. Ready to Eat Cereal plants. On October 5, the union decided to strike at all four plants.

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