Kellogg’s workers get 15% pay hike in three years, union says

Over a three-year period, workers at a Kellogg's manufacturing facility in Kansas received a historic wage increase of more than 15%.

On Monday, the Retail, Wholesale and Department Store Union RWDSU Local 184 L representing Kellogg s workers who produce Cheez-It snack crackers in Kansas City ratified a new three-year deal that contained the unprecedented wage increases, according to the union.

The wages for 570 workers at the facility will increase by 6% in the first year, with another 5% increase during the second year and a 4.5% increase during the third year. This is a 15.5% increase over the term of the contract.

The union said that Kellogg's workers will get a $500 bonus during the third year of the deal.

RWDSU Vice President Roger Grobstich called it a historic contract for Local 184 L members at Kelloggs s, with the highest wage increases in Local 184 L history. Workers at the facility will 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.

The union said that the new hires earning full pay rates will be faster because the contract includes better vacation scheduling, severance pay, show allowance, and a plant starting progression rate.

Larry Smith, RWDSU Local 184 L President and 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, the inflation surged 7.9% compared to a year earlier, the sharpest spike since 1982. Inflation for many Americans is 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 said.

The Kellogg spokesman 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 are glad to have negotiated a contract that recognizes the work of our employees in Kansas City and helps ensure the long-term viability of the bakery and our business, Bahner said.