Rod Nickel

(Reuters) – Workers at Cargill Inc’s High River beef-processing facility in Alberta will vote on a proposed new offer from the company. This is just days ahead of a possible strike.

This plant can process up to 4500 cattle per day or 35% Canada’s beef processing capacity. Unless a contract is reached, the union Local 401 of United Food and Commercial Workers has stated that approximately 2,000 workers at the plant will go on strike Monday.

The two sides met on Tuesday to discuss the matter. On Tuesday, the bargaining committee of the UFCW agreed to make the revised offer to its members. A Cargill spokesperson Daniel Sullivan stated that the agreement was made. From Thursday to Saturday, the vote will take places.

A spokesperson from UFCW indicated that he will comment on the matter later in today.

Safety concerns have been raised by workers. COVID-19, which infected more than 900 employees at High River’s plant in 2020 with severe consequences, struck the High River facility hard. Cargill had to close down the High River plant temporarily due to an outbreak. Three deaths were also caused by this virus.

Other North American meat factories have been affected by outbreaks, as employees work close together.

Sullivan stated that Cargill offers a pay increase and improved benefits, as well as retroactive compensation. However, Sullivan did not provide details.

“We continue to believe we can achieve a deal prior to the strike deadline,” Sullivan wrote in an email.

Last week, 98% of workers voted against Cargill’s offer. UFCW recommended rejecting Cargill’s offer.

An abrupt plant shut down would have a rapid ripple effect on North America’s beef- and cattle-supply chain.

Brian Perillat (CanFax senior analyst) stated that more slaughter-ready cattle will need to spend longer in feedlots. This would increase farmers’ costs.

According to U.S. Department of Agriculture’s latest data, October saw a 16% increase in retail ground beef prices. The average price per pound was $4.87.