Tentative deal offered in Cargill meat plant dispute

Workers at the Cargill meatpacking plant in High River, Alta., that provides much of the beef in Canadian grocery stores are slated to vote on a tentative deal only days away from a strike or lockout deadline of Dec. 6.

“We are encouraged by the outcome of yesterday’s meeting with the union bargaining committee representing our High River team,” said Cargill in an email Dec. 1.

“After a long day of collaborative discussion, we reached an agreement on an offer that the bargaining committee will recommend to its members. The offer is comprehensive and fair and includes retroactive pay, signing bonuses, a 21-percent wage increase over the life of the contract, and improved health benefits.”

Nearly 2,000 workers represented by the United Food and Commercial Workers Canada (UFCW) Union Local 401 are to vote on the agreement from Dec. 2 to Dec. 4, said Cargill.

Union president Thomas Hesse has called the contract dispute a “watershed moment” for the Canadian beef sector.

Alberta Agriculture Minister Nate Horner has said beef producers could be impacted if the workers decide to strike. The union served notice about potential job action Nov. 10.

After more than 1,400 workers voted 98 percent against a previous offer by Cargill on Nov. 23 and 24, the company served notice it would lock out workers on Dec. 6 if a deal isn’t reached.

Cargill said Dec. 1 “we remain optimistic we can reach a deal before the strike deadline and encourage employees to vote on this offer, which recognizes the important role they play in Cargill’s work to nourish the world in a safe, responsible and sustainable way.

“While we navigate this negotiation, we continue to focus on fulfilling food manufacturer, retail and food service customer orders while keeping markets moving for farmers and ranchers.”

Union labour relations officer Scott Payne did not immediately reply to a request Dec. 1 for an interview.

An executive summary of a report by researchers at the Centre for Refugee Studies at York University and the Calgary-based community advocacy group ActionDignity said 70 percent of beef sold in Canada comes from Cargill’s plant in High River and the JBS Foods facility in Brooks, Alta.

It added that 67 percent of workers in the province’s meat processing industry are immigrants who “bore the brunt of the outbreaks, infection and fatalities” from COVID-19.

Hundreds of workers at the High River plant were infected and two died following an outbreak last year that was the largest in North America, forcing the facility to be closed for two weeks.

Hesse said many of the workers feel they are largely invisible to people in authority at both Cargill and the provincial government. The company ended its extra pandemic pay for workers last year, although the pandemic has continued and beef prices in grocery stores have soared, he added.

However, Cargill said in a statement Nov. 12 that “we greatly value our employees and the work they do to feed Canadians … we remain focused on employee safety, ensuring farmers and ranchers have access to markets, and providing meals for families across Canada.”

Cargill added that it had exchanged multiple comprehensive proposals with the union that “included increased wages well beyond the industry standard,” along with enhanced employee benefits and cash bonuses.

Contact doug.ferguson@producer.com