11 meat providers fix wages, suit says

Collusion alleged to at least 2014

DENVER -- Three meat plant workers have filed a federal lawsuit accusing 11 of the United States' largest beef and pork producers of conspiring to depress wages and benefits.

The lawsuit, filed in federal court Friday in Denver, seeks class-action status and said the meat producers have worked together since at least 2014 to keep workers' compensation lower than the market would allow, violating the Sherman Antitrust Act.

It was brought by two meat plant workers from Iowa and one from Georgia but seeks to represent hundreds of thousands of other workers in positions from slaughtering to production at the companies' collective 140 plants.

Together the plants produce about 80% of the red meat sold to U.S. consumers, according to the lawsuit.

The companies are JBS USA Food Co., Cargill Inc., Hormel Foods Corp., American Foods Group LLC, Triumph Foods LLC, Seaboard Foods LLC, National Beef Packing Co. LLC, Iowa Premium LLC, Smithfield Foods Inc., Agri Beef Co. and Perdue Farms Inc., along with some subsidiaries.

Cargill denied any wrongdoing Wednesday.

"While we cannot comment with specificity during the pendency of litigation, Cargill sets compensation independently to ensure that it pays fair and competitive wages to employees in each of the company's plants," company spokesperson Daniel Sullivan said.

Perdue Farms spokesperson Andrea Staub declined to comment, saying the company does not discuss pending lawsuits.

Representatives of the other companies did not immediately return emails and telephone messages seeking comment Wednesday.

Two consulting companies the lawsuit said helped the meat producers exchange compensation information are also named as defendants. The lawsuit was filed by lawyers from Hagens Berman.

"Our firm has secured $195 million in the poultry processing industry for the same antitrust behavior," Managing Partner Steve Berman said in a statement Wednesday. "The meat industry's gravy train ends here."

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