Washington — Ministry of Justice Proceedings On Monday, it was intended to end what was described as a decades-long plan to deceive workers and curb wages, along with the proposed deal, to three large poultry processors.
This move is part of the sector’s extensive research on anti-competitive practices in the poultry industry.The application will be filed just a few weeks after the department Lost in criminal price fixing proceedings For chicken company executives.
For at least 20 years, processors Cargill, Sanderson Farm, Wayne Farm, and data companies called Webber, Men, and Saar have illegally shared information about employee compensation to curb wages and curb competition. did. Maryland District Federal District Court. The data shared was so detailed that the processor created a national map showing the company’s budget and wages at individual factories.
According to the proceedings, the three processors employ more than 90 percent of domestic poultry processors, along with 18 others listed in the proceedings as unnamed conspirators.
The Justice Ministry also Consent decree It would prohibit companies from sharing such information and require workers affected by the system to pay $ 84.8 million if approved by federal courts. Under the law, court-appointed monitors also guarantee compliance for 10 years, and the Department of Justice has the authority to inspect processing facilities.
Wayne Farm’s subsidiaries Cargill and Continental Grain announced last week that they had completed the acquisition of Sanderson Farm. Cargill said in a statement Monday that the consent decree did not plead guilty and denied cheating.
Slaughterhouses are one of the most dangerous workplaces in the country, with some having the highest rates of work-related injuries and illnesses. According to Human Rights Watch.. Meat stuffing facility workers often work long hours at low wages while standing from blood and internal organs, elbows to elbows. This is the condition that caused the early wave of plant closure in the coronavirus pandemic.
Prosecutors also blamed two, Sanderson Farm and Wayne Farm. 10 largest chicken processors In the country, further abuse of poultry farmers.
Producers contracted with both companies are paid based on their performance compared to other companies under the so-called poultry “tournament” system.This way Leads to widespread fluctuations in incomeAnd advocates of chicken farmers and workers have criticized it as abusive and opaque.
In the proceedings, Sanderson and Wayne accused farmers of failing to disclose important information for assessing financial risk, such as the number of chicks they could expect to receive and the variety and age of the chicks. This omission violated a 100-year-old law governing the meat packaging industry.
Under the Consent Decree, the two companies perform well compared to other producers, so they cannot reduce the base salary of chicken producers, but they can offer bonuses and other incentives.
The Consent Decree is open for a 60-day comment period, after which it must be approved by the Maryland District Court.
