AP Exclusive: US meatpacking workers win back pensions in new union contract with JBS

FILE - In this Friday, July 223, 2021, photograph, employees move into an entrance to the JBS meat processing plant in Greeley, Colo. Photo by David Zalubowski /AP

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U.S. meatpacking workers are getting their first new pension plan in nearly 40 years under a contract agreement between JBS, one of the world’s largest meat companies, and an American labor union.

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The United Food and Commercial Workers union said Thursday that 26,000 meatpacking workers at 14 JBS facilities would be eligible for the pension plan. The new contract, which was ratified by workers this week, also adds paid sick leave, wage increases and new plant safety measures.

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“This contract, everything that was achieved, really starts to paint the picture of what everybody would like to have: long-term stable jobs that are a benefit for the employees, a benefit for the employers and a benefit for the community they operate in,” Mark Lauritsen, the head of the UFCW’s meatpacking and food processing division, told The Associated Press in an interview.

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Brazil-based JBS said the pension plan reflected its commitment to its workforce and the rural communities in which it operates.

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“We are confident that the significant wage increases over the life of the contracts and the opportunity of a secure retirement through our pension plan will create a better future for the men and women who work with us at JBS,” the company said in a statement.

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Lauritsen said pension plans used to be standard in the meatpacking industry but were cut in the 1980s as companies consolidated. Big meat companies like Tyson Foods and Cargill now offer 401 (k) plans but not pensions.

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The union started discussing a return to pensions a few years ago as a way to help companies hang on to their workers, according to Lauritsen.

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“The good thing about a 401 (k) is that it’s portable, but the bad thing about a 401 (k) is that it’s portable,” he said. “This was a way to capture and retain people who were moving from plant to plant, chasing an extra dime or a quarter.”

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Workers hailed the plan.

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“Everything now is very expensive and it’s hard to save money for retirement, so this gives us security,” said Thelma Cruz, a union steward with JBS at a pork plant in Marshalltown, Iowa.

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A return to pensions is unusual but not unheard of in the private sector. IBM reopened its frozen pension plan in 2023.

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The contract increases average pay for meatpacking workers to $23 to $24 per hour and establishes safety and ergonomic committees at every plant.

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Paid sick leave — which rival Tyson Foods began offering in 2021 — was also hailed by workers in an industry devastated by the COVID pandemic.

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The move could also help JBS in its effort to burnish its image ahead of a potential U.S. stock offering.

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The company has wanted to list its share in both Brazil and New York for years, but has been thwarted by lawmakers, environmental groups and others who are concerned about its history of corruption and environmental damage.

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The U.S. Securities and Exchange Commission approved JBS’s application to list its shares on the New York Stock Exchange last month, and the company’s shareholders are scheduled to vote on the listing Friday.

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But Lauritsen said the stock listing was never discussed during negotiations with the UFCW, and the union has no position on the listing.

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“JBS is on a journey and we’re going to keep pushing them right along,” he said. “We’re starting to see an employer that’s committed to long-term, stable jobs that help the worker and the community.”

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