Planned Labour Strike At Cargill Puts 40% Of Canada’s Beef Supply At Risk - InvestingChannel

Planned Labour Strike At Cargill Puts 40% Of Canada’s Beef Supply At Risk

A pending strike at a Cargill beef processing plant in Alberta could put 40% of Canada’s beef supply at risk.

A union representing thousands of workers at Cargill’s Alberta plant gave official notice of a strike scheduled to begin on December 6 following two days of contract negotiations. The strike could take the form of a complete work stoppage or refusal to work overtime and certain shifts.

The move comes as beef prices reach record levels in Canada and is the latest example of workers flexing newfound leverage in a company critical to food supply chains.

The Cargill facility located in High River, Alberta is the largest in Canada and accounts for roughly 40% of the country’s total beef processing capacity. If workers strike, Canadian consumers could see a drop in packaged beef on store shelves as well as higher prices.

Cargill has said it and the union have exchanged multiple proposals that included increased wages, enhanced benefits, and cash bonus opportunities.

The union is discussing other possible actions to accompany a strike, including a boycott of the beef industry.

Meat workers have complained about pandemic health and safety measures after a COVID-19 outbreak last year sickened half of the plant’s staff and resulted in a temporary shutdown.

Meanwhile, a global labor squeeze has strengthened workers’ bargaining power. Businesses are struggling to hire and retain staff as demand swells.

Cargill isn’t alone. Around 10,000 employees at Deere & Co., the world’s biggest tractor maker, have been on strike since mid-October. Workers at four of Kellogg’s plants are also on strike, forcing that company to bring in cereal from abroad to supply the U.S. market.

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