Tyson Foods Forking Over $32 Million in Wage Settlement

For years, meatpacking companies refused to compensate workers for the time they spent suiting up for work and putting on safety gear. But now Tyson Foods Inc. is paying the price.

As The Wall Street Journal reports, Tyson Foods has agreed to fork over up to $32 million to settle 12-year-old litigation seeking compensation for the time hourly poultry-plant workers need to get in and out of their work garb and gear.

The case was initiated by the United Food and Commercial Workers International Union. Its president, Joe Hansen, said in a news release, “We’re changing the way meatpackers do business and making them pay thousands of workers correctly.”

Under the settlement approved by a federal judge in Columbus, Ga., Tyson Foods will pay as much as $17.5 million to about 17,000 current or former workers, or about $1,000 per person. Also included was up to $14.5 million in attorney’s fees. The Springdale, Ark., company, however, isn’t admitting any wrongdoing.

Still, Tyson Foods is retreating from the longtime meatpacking industry position that suiting up time didn’t need to be compensated because the Fair Labor Standards Act was vague about when many of its workers should clock in.

The company last year, in a related action, agreed with the U.S. Labor Department to begin paying certain line employees for an extra eight to 12 minutes of work. By December 2012, it will have workers clock in before dressing for work, and clock out after their work gear is removed. The change in pay practices stemming from last year’s agreement is expected to cover as many as 38,000 Tyson employees.

In a separate case, Tyson Foods said today that it agreed to pay $2.25 million to about 1,640 women to settle allegations by federal regulators that the company discriminated against them by rejecting them for jobs at four of its Midwest meat plants nearly a decade ago.

The Labor Department said that the company, a federal contractor, improperly rejected qualified female applicants seeking work at two plants in Iowa and at operations in Illinois and Nebraska. Tyson Foods has denied any discrimination, but an official said the company now is doing a better job of saving the documentation behind its hiring decisions.

STUART SILVERSTEIN

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One comment to “Tyson Foods Forking Over $32 Million in Wage Settlement”

  1. Donika

    Is there any way you can find out when they are dispersing the payments and who they go to?

    Thanks!

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