Hormel, affiliated meatpackers settle wage-fixing lawsuits for $13.5 million

Hormel Foods, subsidiary Rochelle Foods and supplier Quality Pork Processors have settled a class-action lawsuit alleging illegal wage-fixing for a combined $13.5 million.

Plaintiffs accused the Austin, Minn.-based food company of a “conspiracy to fix and depress compensation to red meat processing plant workers” going back a decade, according to the federal lawsuit. The company reportedly shared compensation data with competitors to “artificially depress” wages and benefits throughout the industry.

Hormel subsidiary Jennie-O Turkey Store also reached a settlement in a separate wage-fixing case last week. Terms of that deal were not public.

“Hormel Foods strongly denies liability and continues to deny the allegations in each of these complaints. Hormel Foods believes it has valid defenses to the claims,” the company said in a statement. “However, to avoid the uncertainty, risk, expense and distraction of continued litigation, the company has decided to settle these cases.”

A number of meat companies have agreed to hundreds of millions worth of settlements in wide-ranging federal lawsuits alleging price-fixing and other anti-competitive behavior in recent years.