Hormel Foods, alongside its subsidiaries Rochelle Foods and Quality Pork Processors, has agreed to a $13.5 million settlement to resolve claims that it participated in a conspiracy to suppress wages at some of its red meat processing facilities. This agreement comes as part of a broader lawsuit involving nearly two dozen other processors, with allegations of wage-fixing practices that have impacted a large class of workers.
The workers involved in the lawsuit accused the companies of holding secret, “off-the-books” meetings where detailed wage and benefit information was exchanged through Agri Stats, a data-sharing service. These meetings, according to the claims, were used to collude on wage-fixing strategies, ultimately suppressing the wages of workers in the industry.
The settlement follows similar agreements reached by other major industry players. In March, Tyson Foods agreed to pay $72.25 million, while JBS agreed to a $55 million settlement, all related to the same wage-fixing allegations.
While the companies involved, including Hormel, have denied any wrongdoing, they have opted to settle the case to avoid the uncertainty, risk, and expense associated with prolonged litigation. In a statement to Meatingplace, Hormel Foods maintained its position, stating, “Hormel Foods believes it has valid defenses to the claims. However, to avoid the uncertainty, risk, expense, and distraction of continued litigation, the company has decided to settle this case.”
The settlement is pending preliminary approval from the judge, marking another significant development in the ongoing scrutiny of wage practices within the meat processing industry.
This case highlights the growing concerns over wage practices in the sector and the legal challenges companies face in addressing these issues. The outcome of this and related cases may have broader implications for labor practices across the industry, particularly in terms of how wage information is shared and used among competitors.
