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.
About Kellogg Company
At Kellogg Company (NYSE: K), we are driven to enrich and delight the world through foods and brands that matter. With 2014 sales of $14.6 billion and more than 1,600 foods, Kellogg is the world's leading cereal company; second largest producer of cookies, crackers and savory snacks; and a leading North American frozen foods company. Our brands – Kellogg's®, Keebler®, Special K®, Pringles®, Kellogg's Frosted Flakes®, Pop-Tarts®, Kellogg's Corn Flakes®, Rice Krispies®, Cheez-It®, Eggo®, Mini-Wheats® and more – nourish families so they can flourish and thrive. Through our Breakfasts for Better DaysTM initiative, we're providing 1 billion servings of cereal and snacks – more than half of which are breakfasts – to children and families in need around the world by the end of 2016. To learn more, visit www.kelloggcompany.com or follow us on Twitter @KelloggCompany, YouTube and on Social K.
SOURCE Kellogg Company