Cargill union members could strike after 98 per cent reject contract offer
A strike would come as prices of red meat approach record highs in North America amid supply chain disruptions
Author of the article:Jason Herring
Publishing date:Nov 25, 2021 •
A sign is shown outside the Cargill facility in High River, AB, south of Calgary on Wednesday, May 6, 2020.
PHOTO BY JIM WELLS/POSTMEDIA
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Unionized workers with Cargill have voted overwhelmingly against the company’s latest contract offer, putting them in a position to strike as early as Dec. 6.
UFCW Local 401, the union that represents about 2,400 workers at Cargill’s two Alberta meat processing and packaging facilities, said 98 per cent of its workers rejected the offer. The near-unanimous rejection shows the need for the employer to rebuild trust in the wake of the COVID-19 pandemic, said UFCW Local 401 president Thomas Hesse
“Ultimately, it’s counterintuitive for any worker to want to stand on the street, withdraw their labour, take on all the risks associated with that. That is provoked,” Hesse told Postmedia.
“Cargill has made some overtures and has reached out, and I believe bargaining sessions will galvanize between now and Dec. 6 . . . (But) the workers get to decide. If there is an offer of substantial improvement, the workers will get to reflect on that and vote on that as well, maybe before there’s a strike.”
The testy labour dispute heated up two weeks ago, when union leaders issued Cargill a notice that workers would hit the picket line if a new collective agreement cannot be reached.
A strike would come as prices of red meat approach record highs in North America amid global supply chain struggles. A shutdown at the High River facility would inject more uncertainty into that market, as that plant accounts for roughly 40 per cent of Canada’s beef processing capacity, employing roughly 2,000 workers across two shifts and processing about 4,500 head of cattle daily.
Hesse said he believes the workers have public sympathy during the dispute, raising the possibility of a beef boycott if workers go on strike.
In an emailed statement, Cargill spokesman Daniel Sullivan said the company is optimistic an agreement can be reached before the Dec. 6 deadline. He said the company’s proposal reflects the “tremendous skill and dedication” of plant workers.
“We are willing to keep meeting to avoid any labour disruption, which is in no one’s best interest during an already challenging time,” Sullivan said.
“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. If necessary, we will shift production to other facilities within our broad supply chain footprint to minimize any disruptions.”
Cargill’s High River plant was the site of one of the largest COVID-19 outbreaks in Canada in the spring of 2020. Three deaths were linked to that outbreak, and almost half of the plant’s workers tested positive for the virus.
UFCW Local 401 also represents nearly 400 workers at Cargill’s Case Ready meat packaging facility in northeast Calgary.
Hesse said safety and compensation are issues for workers, but said bargaining to date has largely been driven by emotion and conversations around trust.
Article content
Unionized workers with Cargill have voted overwhelmingly against the company’s latest contract offer, putting them in a position to strike as early as Dec. 6.
UFCW Local 401, the union that represents about 2,400 workers at Cargill’s two Alberta meat processing and packaging facilities, said 98 per cent of its workers rejected the offer. The near-unanimous rejection shows the need for the employer to rebuild trust in the wake of the COVID-19 pandemic, said UFCW Local 401 president Thomas Hesse
“Ultimately, it’s counterintuitive for any worker to want to stand on the street, withdraw their labour, take on all the risks associated with that. That is provoked,” Hesse told Postmedia.
“Cargill has made some overtures and has reached out, and I believe bargaining sessions will galvanize between now and Dec. 6 . . . (But) the workers get to decide. If there is an offer of substantial improvement, the workers will get to reflect on that and vote on that as well, maybe before there’s a strike.”
The testy labour dispute heated up two weeks ago, when union leaders issued Cargill a notice that workers would hit the picket line if a new collective agreement cannot be reached.
A strike would come as prices of red meat approach record highs in North America amid global supply chain struggles. A shutdown at the High River facility would inject more uncertainty into that market, as that plant accounts for roughly 40 per cent of Canada’s beef processing capacity, employing roughly 2,000 workers across two shifts and processing about 4,500 head of cattle daily.
Hesse said he believes the workers have public sympathy during the dispute, raising the possibility of a beef boycott if workers go on strike.
In an emailed statement, Cargill spokesman Daniel Sullivan said the company is optimistic an agreement can be reached before the Dec. 6 deadline. He said the company’s proposal reflects the “tremendous skill and dedication” of plant workers.
“We are willing to keep meeting to avoid any labour disruption, which is in no one’s best interest during an already challenging time,” Sullivan said.
“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. If necessary, we will shift production to other facilities within our broad supply chain footprint to minimize any disruptions.”
Cargill’s High River plant was the site of one of the largest COVID-19 outbreaks in Canada in the spring of 2020. Three deaths were linked to that outbreak, and almost half of the plant’s workers tested positive for the virus.
UFCW Local 401 also represents nearly 400 workers at Cargill’s Case Ready meat packaging facility in northeast Calgary.
Hesse said safety and compensation are issues for workers, but said bargaining to date has largely been driven by emotion and conversations around trust.
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