The Justice Department alleges the companies engaged in a multiyear conspiracy to exchange information about the wages and benefits of workers at poultry processing plants to drive down employee competition. — The Associated Press
WASHINGTON — The Justice Department filed a lawsuit Monday against some of the largest poultry producers in the U.S. along with a proposed settlement seeking to end what it claims have been longstanding deceptive and abusive practices for workers.
The government contends the data consulting firm helped to share the information about the workers’ compensation with the companies and their executives. By carrying out the scheme, officials allege, the companies were able to compete less intensely for workers and reduce the amount of money and benefits they had to offer their employees, suppressing competition for poultry processing workers across the board, according to court papers.
“Through a brazen scheme to exchange wage and benefit information, these poultry processors stifled competition and harmed a generation of plant workers who face demanding and sometimes dangerous conditions to earn a living,” said Doha Mekki, the principal deputy assistant attorney general for the Justice Department’s antitrust division.
The suit comes as Cargill and Continental Grain, of which Wayne Farms is a subsidiary, formed a joint venture to acquire Sanderson Farms, paying $203 per share in cash for a company that last year processed more than 4.8 billion pounds of meat. Laurel, Mississippi-based Sanderson Farms has 17,000 employees and 12 plants. It processes 13.6 million chickens per week.
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