'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
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.