Major US meat processors Cargill and Hormel Foods have settled a lawsuit claiming they fixed workers’ wages.
Confirming the settlements, the companies denied any wrongdoing.
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Cargill, Hormel and a third meat supplier – National Beef Packing – have reportedly agreed to pay more than $57m between them to exit the suit.
Reuters said legal representatives for the workers have asked the judge presiding over the suit in Colorado to approve the settlement.
The action accused multiple meat companies of conspiring to artificially keep the wages of the employees low.
In March, Tyson Foods and JBS agreed to pay more than $127m to settle the claims.
The claimants had previously settled on $1.25m “and cooperation” with Perdue Farms and “substantial cooperation” with Webber, Meng, Sahl and Company (WMS). Another of the companies accused, Triumph Foods, was dismissed from the lawsuit.
In a statement sent to Just Food yesterday (9 September), Cargill said the company “chose to settle this case only to avoid larger litigation costs and distractions from the critical work our production teams do”.
It added: “Cargill conducts business in a legal, ethical and responsible manner and we deny any and all wrongdoing. We are grateful for our employees’ commitment and we set their compensation independently to ensure fair pay and competitive wages in each of our plants.”
Hormel, home to brands including Spam and Applegate Farms, said it “strongly denies liability and continues to deny the allegations in the plaintiffs’ complaint”.
The company added: “Hormel Foods believes it has valid defences 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 subject to final court approval.”
Just Food has contacted National Beef for comment.
