US objects to meat processor wage-fixing settlements, citing ‘inadequate’ safeguards

By Reuters News

By Mike Scarcella

WASHINGTON, Sept 30 (Reuters) - President Donald Trump’s administration has urged a US judge to reject approving more than $202 million in proposed worker wage-fixing settlements with major red meat processors, arguing the deals fail to include adequate protections against future violations.

Here are the details:

  • In a filing on Tuesday in federal court in Colorado, the US Justice Department said pending settlements with companies including Tyson Foods, National Beef and Hormel should include provisions “to ensure that the conduct has halted or prevent the recurrence of such conduct”

  • A class estimated at tens of thousands of red meat processing workers at 140 plants alleged a years-long conspiracy among JBS, Tyson and other companies to artificially keep wages low. The lawsuit, filed in 2022, said the companies violated antitrust law by sharing confidential compensation data through surveys, meetings and other methods

  • Tyson and Brazil’s JBS, the world’s largest beef producer, agreed to pay a combined $127.2 million to resolve the claims against them. The meat companies and other defendants have denied wrongdoing

  • The US is not a party to the lawsuit, but federal law allows it to review proposed settlements and weigh in on whether they serve the public interest. A fairness hearing is scheduled for November 13

  • “Allegations this serious demand more than monetary relief. In the United States’ view, an appropriate resolution on behalf of these workers should include concrete and enforceable safeguards against future wage fixing,” Justice Department lawyers told the Colorado court

  • US District Judge Philip Brimmer is not obligated to follow the government’s suggestion to decline final approval of the settlements. The US said it was involved in discussions with the parties in the lawsuit to try to “expediently” resolve its concerns

  • Lead attorneys for the plaintiffs did not immediately respond to requests for comment. In court filings, lawyers for the workers have touted the settlements as providing immediate and meaningful benefits

Read more:

Data company Agri Stats settles meat workers’ wage-fixing lawsuit

Cargill, Hormel latest to settle US workers' wage-fixing lawsuit

Tyson, JBS to pay $127 million to resolve workers' wage-fixing lawsuit

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.