September 20, 2024

 

Cargill agrees to compensation pertaining to lawsuit alleging suppression of plant workers' pay

 

Meat industry giants Cargill, National Beef Packing and Hormel Foods have agreed to pay a combined US$57.4 million to exit a proposed class action accusing them of suppressing workers' pay at processing plants in the United States.

 

Lawyers for the workers asked b a US judge in Colorado to preliminarily approve the three deals, which would push total settlements to more than US$200 million since the lawsuit was filed in 2022.

 

The settlements cover claims from tens of thousands of red meat processing workers at 140 plants alleging a years-long conspiracy among leading processors to keep wages low. The workers claim the processors and two consulting companies violated antitrust law by sharing confidential compensation data though industry surveys and other means.

 

Cargill said it will pay US$29.75 million, National Beef Packing agreed to pay US$14.2 million and Hormel Foods will pay US$13.5 million, according to the new settlements.

 

Cargill in a statement said it was settling "only to avoid larger litigation costs and distractions." The company said it sets compensation "independently to ensure fair pay and competitive wages in each of our plants."

 

In a statement, Hormel said it was settling only "to avoid the uncertainty, risk, expense, and distraction of continued litigation."

 

Cargill, Hormel and the other settling defendants have denied any wrongdoing.

 

US District Judge Phillip Brimmer declined to dismiss the lawsuit last year.

 

In earlier settlements, Arkansas-based Tyson Foods said it will pay US$72.25 million, and Brazil's JBS, agreed to pay $55 million. Those two deals, the largest so far, are pending court approval. The settling defendants said they will cooperate with the plaintiffs — producing documents and providing witnesses for questioning — as they pursue related claims against Smithfield and several other companies that have not reached an accord.

 

Attorneys for the workers told the court that they "will be provided with substantial guaranteed relief, and the resulting litigation will benefit by proceeding in a more targeted manner against fewer, remaining defendants."

 

They said they could seek a legal-fee award from the settlement fund, but did not specify a range or amount.

 

The attorneys leading the lawsuit separately have reached more than US$200 million in settlements in Maryland federal court resolving similar claims from poultry workers that their wages were artificially suppressed.

- Reuters