'Couldn’t come at a worse time': Analysts worry about potential impacts from Cargill strike
You may have noticed record high prices at the meat counter recently and according to analysts, you could see fewer options and a major impact to beef producers if workers at the Cargill plant in High River, Alta. go on strike next month.
The United Food and Commercial Workers Local 401, which represents some 2,000 workers at the meat processing plant, delivered a strike notice to Cargill representatives Wednesday after 97 per cent of workers voted in favour. They’ve been without a contract since the end of 2020 and are demanding fair compensation and a safe workplace.
The cost of beef has skyrocketed to record highs since late 2020, due largely to a rise in grain prices, supply chain issues and labour disruptions, but analysts don’t expect a strike at the plant to translate into even higher prices for consumers.
“Grocers may decided not to carry as many products at the meat counter when it comes to beef. They’ll probably fill the space with more poultry, more hogs really so more pork,” said Sylvain Charlebois, senior director of the Agri-Food Analytics Lab at Dalhousie University in Halifax.
“Consumers have options, you have the meat trifecta with chicken and pork and they can go pick another type of meat.”
That will only happen if the plant shuts down due to a labour disruption, which Charlebois believes is very unlikely.
“I don’t think Cargill can afford a labour dispute, they’ll have to settle and if they do settle than wages will go up significantly," he said.
In a statement on Thursday, UFCW Local 401 president Thomas Hesse said if a deal isn't struck by Dec. 6, workers will go on strike.
"A picket line will be highly visible, and a strike appears to be a viable weapon in achieving a fair offer in negotiations," the union said.
“They want compensation for everything they’ve went through,” said Hesse. “How do you really put a number on the kind of suffering that these workers have felt? Hundreds of them got the disease, some slept in the garage because they were terrified to give it to their family.”
MAJOR BEEF PRODUCER
Cargill handles around 35 per cent of beef processed in Canada, with some 4,500 head of cattle slaughtered a day.
The facility had to shut down during the pandemic due to a massive COVID-19 outbreak, with around half of all workers contracting the virus and the deaths of two employees.
“Closing the plant for a while is going to be a problem for the entire sector. With the 26 last year I believe it took four months for the entire industry to get back to some kind of normal,” said Charlebois.
Cattle producers would likely take the biggest blow from a shutdown after already enduring one last year along with other challenges from the pandemic and a tough drought season.
“The biggest losers would be farmers by far, they would be stuck with excess inventory and would have to continue to feed cattle," said Charlebois.
"The grain market is quite expensive these days so they would have to keep on feeding cattle with highly expensive prices for feed. So if there’s a labour dispute farmers are highly vulnerable right now.”
COULDN'T COME AT A WORSE TIME
The Alberta Cattle Feeders says a strike couldn’t come at a worst time.
Grain prices have almost doubled from a year ago and says if Cargill shutdown next month it will only compound the problems facing farmers.
“Plants are behind already with labour shortages and processing cattle,” says “Unfortunately it’s going to be so hard on our industry, I’m just not sure how we’re going to recover and some people are going to be absolutely devastated by it financially.”
On Wednesday, a spokesperson for Cargill said they negotiations were still taking place and remained optimistic an agreement will be reached.
"At Cargill, we greatly value our employees and the work they do to feed Canadians. Over the last two days, our company and the union representing employees at our High River protein facility have exchanged multiple comprehensive proposals that included increased wages well beyond the industry standard, enhanced employee benefits and cash bonus’ for active employees," read a statement.
"We believe that our proposal is very fair and representative of our values to put people first and do the right thing.
"Unfortunately, we have yet to reach an agreement. However, we are optimistic that we can, and we will continue to work towards an agreement by the Union’s Dec. 6 strike deadline. We remain focused on employee safety, ensuring farmers and ranchers have access to markets and providing meals for families across Canada."
CTVNews.ca Top Stories
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Celebrity designer sentenced to 18 months in prison for smuggling crocodile handbags
A leading fashion designer whose accessories were used by celebrities from Britney Spears to the cast of the 'Sex and the City' TV series was sentenced Monday to 18 months in prison after pleading guilty in Miami federal court on charges of smuggling crocodile handbags from her native Colombia.
Wildfire leads to evacuation order issued for northeast Alberta community
An evacuation order was issued on Monday afternoon for homes in the area of Cold Lake First Nation.