Tuesday, November 15, 2022

Wage-fixing is the new meat-industry lawsuit

Eleven of the largest meat packers in the United States have been accused of wage-fixing in a new lawsuit filed in Colorado.

Heinz-Kraft, one of the largest food-processing companies, is also accused in the lawsuit which is seeking class-action status.


The suit accuses affiliates the companies of conspiring to drive down wages paid to workers at beef and pork plants across the country by allegedly imposing “no-poach” agreements, exchanging data about compensation among workers through “detailed surveys” and imposing what were described as “highly regimented” wage schedules.


The accusers say the collusion began Jan. 1, 2014, and continued through the present.


The 11 main defendants and their affiliates include American Foods Group, Cargill Inc., Hormel Foods Corp., JBS, National Beef, Perdue Farms, Seaboard Corp., Smithfield, Triumph Foods, Tyson Foods Inc., data aggregators Agri Beef, Agri-Stats Inc. and Weber, Meng, Sahl and Co.


The list also includes Kraft Heinz — which is accused of providing a detailed wage survey in 2019 — Clemens Food Group, accused of setting “artificially depressed” wages based on compensation, and Indiana Packers, which allegedly benefited from Agri-Stats data.