HOW TO SOLVE The 226 workers at Kellogg's Memphis plant have been "locked-out" from their jobs producing Frosted Flakes and Froot Loops for over 3 months. Company management and the union representing the workers the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union reached a stalemate in negotiations in October, resulting in the lockout. The primary issue is Kellogg's demand of dramatically increasing the amount of temporary workers, who would earn $6 less and be entitled to much fewer benefits: effectively creating a two-tier system at the plant. Under the current agreement, Kellogg has the right to use temporary workers for up to 30% of the workforce, but the union claims Kellogg is now pushing for 100%. The workers, who have had their health insurance suspended by Kellogg, fear that their jobs will either be replaced entirely by temporary workers, or they will be forced to take lower wages. Kellogg, in the midst of a 4-year cost reduction effort labeled, "Project K," claims that the change is necessary to remain competitive and that current employees will be unaffected by the change. Are two-tier systems ethically problematic?USING WRAP METHOD