Kellogg’s workers went on strike at the company’s four factories in the United States, Michigan, Nebraska, Pennsylvania, and Tennessee. The workers demanded that the two-tier salary structure that existed at Kellogg’s store be abolished. In this system, workers are divided into two groups, one consisting of “temporary workers” who are mainly new hires, and the other consisting of “legacy workers” who are high-level workers.
At Kellogg’s, the two groups of employees have different pay structures, with “rich workers” receiving higher salaries than “transition workers” in addition to other medical benefits. When someone in the Wealth Employee category retires or moves house, people in the ‘Transition Employee’ category are elevated to ‘Legacy Employees’.
Kellogg’s previously set a limit to keep the number of temporary employees at 30%, but now employees suspect the company is deviating from its promise.
The difference in hourly wages between a temp and a former employee is $12 an hour. In addition, relocating workers have to pay more for their medical services than ex-employees.
He adds: “The union immediately rejected it and said it would not put it to an employee vote. We ask our employees at Cereal to ask their union to make an offer to vote. The union continues to press for unsustainable and unrealistic proposals. They suggested adding costs that would hamper the future success of our mills and grain operations.”
Meanwhile, Kellogg’s has a responsibility to its businesses, customers, and consumers to run its factories despite the strike. The company continues to operate at all four plants by other means and hopes to reach an agreement soon. Kellogg’s remains willing to consider realistic offers from the union.