Nearly 3,800 employees at a major JBS beef processing facility in Greeley, Colorado have approved a new two-year contract with the global meat processing giant, ending a month-long work stoppage, both the company and union announced Sunday.
The deal between JBS and United Food and Commercial Workers Local 7 was finalized after negotiations resumed April 9-10. Workers had been on strike for a month demanding wage adjustments to keep pace with rising costs and an end to charges for replacement safety gear.
According to Local 7, the new contract delivers nearly a 33% pay raise spread over two years, eliminates worker payments for personal protective equipment, and shields employees from healthcare cost increases. JBS stated the final agreement matched their previous proposal.
Though JBS welcomed the resolution, the company said it was disappointed that “UFCW Local 7 leadership chose to eliminate the historic pension benefit that was part of the national agreement negotiated last year in partnership with UFCW International.”
Under the settlement terms, the union will also drop seven unfair labor practice complaints filed against JBS, the company confirmed.
The work stoppage came as beef prices reached historic highs this year due to the nation’s cattle inventory falling to its lowest point in 75 years. This shortage has forced meat processors like JBS to compete intensively for available cattle while also benefiting from elevated market prices.
The Colorado plant shutdown further strained U.S. meat processing capabilities, coming after Tyson Foods shuttered a Nebraska beef facility and scaled back operations at a Texas location this year.
