A summer of labor unrest at US food manufacturers has stretched into fall, as COVID-19 pandemic-weary workers continue to strike for better pay.
About 1,400 workers at Kellogg Co’s US cereal plants walked off the job this week, saying negotiations with the company regarding pay and benefits are at an impasse. Meanwhile, in Kentucky, a strike by 420 workers against Heaven Hill Distilleries Inc is in its fourth week.
The actions come on top of strikes earlier this summer by 600 workers at a Frito-Lay plant in Topeka, Kansas, and 1,000 workers at five Nabisco Inc plants across the US. In June, Smithfield Foods Inc narrowly avoided a strike by thousands of workers at a plant in Sioux Falls, South Dakota.
Photo: AP
The number of actions is unusual. Kellogg says this is the first time its US cereal workers have gone on strike since 1972. Nabisco workers last walked off the job in 1969.
However, after a difficult 18 months, which saw many workers putting in 12-hour shifts and mandatory overtime to meet pandemic demand, employees are in no mood to compromise.
“We’re drawing a line in the sand,” said Rob Long, a production mechanic who has worked at Kellogg’s Omaha plant for 11 years. Kellogg workers are also striking in Michigan, Pennsylvania and Tennessee.
Long said he and others are upset about a two-tiered system of employees that gives fewer benefits and less pay to newer workers, creating a wedge within the ranks. Long said the company wants to eliminate a provision that currently caps the lower tier of workers at 30 percent of the workforce.
After decades of watching companies chip away at pay and benefits, food workers sense that they have a rare upper hand in the wake of the pandemic, said Patricia Campos-Medina, executive director of The Worker Institute at ILR Cornell.
Labor shortages mean companies cannot easily find replacements for food-production workers, she said. The pandemic has also put a spotlight on the essential, and sometimes dangerous, nature of their work.
“Workers in general are demanding that companies invest more in the workforce and not just use the profits for the shareholders,” she said.
Campos-Medina said the trend is not only happening with unionized workers such as those at Kellogg, who are members of the Bakery, Confectionery, Tobacco Workers and Grain Millers Union. Non-union fast food workers have walked off the job in dozens of US cities seeking a US$15 minimum wage. Workers at three Starbucks Corp stores in Buffalo, New York, are trying to unionize.
Kris Bahner, Kellogg senior vice president for global corporate affairs, said that the company’s compensation and benefits are already among the industry’s best. Kellogg, which is based in Battle Creek, Michigan, said its longer-term employees made an average of US$120,000 last year and US$118,000 in 2019, and its proposed contract would shift newer workers to those higher wages over six years.
“We are disappointed by the union’s decision to strike,” she said.
Kellogg began negotiating a new four-year contract on Sept. 8.
However, workers on the picket line in Omaha said they are routinely working 74 to 84-hour weeks to earn that money. Some workers said they have endured 12-hour shifts seven days per week throughout the pandemic, with only a few minutes’ notice about mandatory overtime.
“We do make good money, but we’ve given up a lot,” said Dan Jourdan, a packing machine operator who has worked at Kellogg since 2001. “If we worked just 40 hours a week, we’d make nowhere near that kind of wage.”
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with