Kellogg announced on Thursday that it has struck an agreement with the union on a new five-year contract for its employees at a few breakfast cereal plants in the United States, potentially putting an end to a nearly two-month strike.
Wage hikes and benefits for all employees, as well as better terms for temporary workers, are included in the tentative agreement negotiated following many rounds of talks with the union.
All temporary employees with four years or more of service are eligible to migrate to permanent positions with improved salaries and benefits under the new agreement.
Previously, union members had challenged Kellogg's two-tier employment arrangement, which did not provide a path for temporary workers, who make up 30% of the company's workforce, to become permanent employees.
Employees at Kellogg's cereal mills in Michigan, Nebraska, Pennsylvania, and Tennessee went on strike on Oct. 5 after their contracts expired, citing disagreements between the firm and around 1,400 union members over compensation and benefits.
The new agreement, which will be voted on by Kellogg employees on December 5, will also improve post-retirement benefits for permanent staff.
Kellogg had hired permanent replacements for some of its factory workers on strike during lengthy negotiations with union members and warned of a hit to its annual profit as a result of the disruption.
As the labor market tightens and inflation reaches historic highs, Kellogg is one of several large U.S. corporations that has recently faced worker strikes.
After a six-week strike, farm equipment manufacturer Deere reached a deal with workers last month.