Kellogg's facing political pressure to resume contract talks

OMAHA, Neb. (AP) — Kellogg's is facing increasing political pressure to resume contract talks with its 1,400 striking cereal plant workers.

Nebraska Gov. Pete Ricketts sent a letter to the company's CEO this week urging the company to return to the bargaining table with workers at its four plants nationwide, including one in his state. That came just a few days after President Joe Biden criticized Kellogg's for threatening to hire permanent replacements for the workers who have been on strike since Oct. 5.

Ricketts said in his letter that the Battle Creek, Michigan-based company should recognize the contributions its workers have made during the pandemic by continuing to produce its well-known brands of cereal and try to retain them during this period when many companies are struggling to hire enough workers.

“Despite the challenges of the global pandemic, they showed up day after day to do their jobs so that across the country there was food on the shelves," said Ricketts, the Nebraska Republican. "These workers helped Kellogg's increase sales and revenue (and grow net income by over 30%) from 2019 to 2020 — a time when many businesses endured losses due to the financial headwinds of the pandemic.”

Members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union overwhelmingly rejected a contract offer from the company last week that would have delivered 3% raises and preserved their current health benefits.

Union members have said they remain concerned about the company's two-tiered system of wages that has been a sticking point during contract talks. The company said its offer would have allowed all workers with at least four years of experience move up to the higher legacy pay level, but union officials said the plan wouldn't let other workers move up quickly enough. And the company...