Kellogg's Kansas union members ratify new contract, get 'historic' wage increase
Union members will get a 15.5% wage increase over 3 years
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Workers at a Kellogg's manufacturing facility in Kansas received a "historic" wage increase this week of more than 15% over a three-year period.
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On Monday, the Retail, Wholesale and Department Store Union (RWDSU) Local 184-L, which represents Kellogg’s workers who produce Cheez-It snack crackers in Kansas City, ratified a new three-year deal, containing the "unprecedented wage increases," according to the union.
Wages for 570 workers at the facility will increase by 6% during the first year with another 5% increase during the second year and a 4.5% bump during the third year. This equates to 15.5% over the term of the contract.
The union also said Kellogg’s workers will get a $500 bonus during the third year of the deal.
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RWDSU Vice President Roger Grobstich called it a "historic contract for Local 184-L members at Kellogg’s, with the highest wage increases ever in Local 184-L history."
Workers at the facility will also get increased "pension benefits and shift differential pay, along with improved dental, voluntary life insurance, and vision benefits with no increase in premiums," according to the RWDSU.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| K | KELLANOVA | 81.02 | +0.24 | +0.30% |
The contract also includes better vacation scheduling, severance pay, show allowance and a "plant starting progression rate that will see new hires earning full pay rate more quickly," according to the union.
Larry Smith, RWDSU Local 184-L president and a Kellogg’s worker, said the wage boost will help workers provide for their families.
It comes at a time when the country is facing red-hot inflation. In February, inflation surged 7.9% compared with a year earlier, the sharpest spike since 1982. For many Americans, inflation is running far ahead of the pay raises that many have received in the past year, making it harder for them to afford necessities like food, gas and rent.
"It’s not just our pay; improved benefits and protected health care with low premiums is what we need and deserve right now," Smith added.
Kellogg spokesperson Kris Bahner told FOX Business that the company considers "multiple factors including the terms of the existing contract, the needs of the business and the local market" when negotiating a new deal.
"We’re glad to have negotiated a contract that recognizes the important work of our employees in Kansas City and helps ensure the long-term viability of the bakery and our business," Bahner said.
The Associated Press contributed to this report.