US objects to meat processor wage-fixing settlements, citing ‘inadequate’ safeguards
TSN•The Justice Department urged a federal judge to reject more than $202 million in proposed worker wage-fixing settlements, saying they lack adequate safeguards against future violations. Tyson Foods and JBS agreed to pay a combined $127.2 million to resolve claims against them.
1. US challenges settlements
The Justice Department urged a federal judge in Colorado to reject more than $202 million in proposed settlements with major red meat processors, arguing the deals need concrete, enforceable safeguards against future wage fixing. The department said pending settlements involving companies including Tyson Foods, National Beef and Hormel should ensure the alleged conduct has halted or cannot recur.
2. Workers’ allegations
Tens of thousands of workers at 140 plants alleged that JBS, Tyson and other companies conspired for years to keep wages low by sharing confidential compensation data. Tyson and JBS agreed to pay a combined $127.2 million to resolve claims against them; the companies and other defendants have denied wrongdoing.
3. Hearing set for November
The United States 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, and Judge Philip Brimmer is not required to follow the government’s recommendation.
