Ablam Adoku, an employee for 8 years at Hormel, joined in with about 1000 members of the local 663 Hormel meatpackers ,marching through downtown Austin s on Labor Day to highlight ongoing contract negotiations with Hormel management,September 4.,2023 in Austin MN. ] JERRY HOLT • jerry.holt@startribune.com Hormel meatpackers are marching through downtown Austin on Labor Day to highlight ongoing contract negotiations with Hormel management. The current contract ends Sept. 10. It’s unclear what the next steps are if negotiations break down, but Austin is the site of the infamous Hormel strike of 1985-’86, a key moment in national labor history and an ugly event that shattered the community, even decades later. (Jerry Holt, Star Tribune/The Minnesota Star Tribune)

A week after its union struck a deal with Hormel Foods Corp., meatpackers at the Fortune 500 company have approved the agreement.

Union officials announced the vote late Wednesday, calling the new contract "historic" and highlighting $3-$6 an hour wage increases for workers at plants in Austin, Minn., as well as Wisconsin, Iowa and Georgia.

"They deserve it," United Food and Commercial Workers Local 663 President Rena Wong said Thursday. "They've been working so hard, not just these last few years of the pandemic but for so long. It's really satisfying that that work is being recognized."

Union officials said the contract also increases pension and 401K benefits while nearly doubling bereavement leave.

Hormel officials in a statement said the company was pleased to reach a deal with the union.

"We are proud to continuously invest in our people in recognition of the work they do to put the safe, quality food that consumers trust and need on tables across the globe," Hormel officials said.

Negotiations for a new four-year contract between workers and Hormel started in July. The current contract expired Sept 10, but both sides agreed to a contract extension that was set to expire on Oct. 8 before both sides came to an agreement.

Meatpackers pushed for better pay and pension deals, among other issues. They argued it was past time for a substantial raise to keep up with inflation and cost-of-living increases, especially as turnover at Hormel remains high.

The new contract appears to be a compromise for both sides. The union's final offer to Hormel last month included $6.25 wage increases by September 2025, while Wong said Hormel offered a $3.50 wage increase in response.

Wong said wage increases will vary based on worker classification and seniority.

Workers in Austin, Hormel's hometown, said better-paying warehouse jobs can be found in nearby communities, some as high as $28 per hour to start, while meatpackers on average make about $20 per hour.

About 1,000 workers and union supporters marched through downtown Austin in 90-degree weather on Labor Day this year to highlight UFCW's contract demands. The demonstration was the largest show of labor force in town since the notorious 1985-'86 strike that divided the community.

The contract talks come as Hormel profits — and the prices of bacon, turkey and other commodities — dip as markets adjust to post-pandemic conditions. The company recently lowered its financial forecast for the rest of 2023, estimating its sales will decline as much as 4% or remain flat compared with 2022.

Hormel's net profit over the past four quarters is $877 million.

The new contract is the latest push for better pay among UFCW workers in recent months, at a time when unions are exerting more power in the workplace.

Hollywood writers recently ratified a new contract after five months on strike while actors are still locked in negotiations with major studios. And United Auto Workers, which voted to go on strike last month against General Motors, Ford and Chrysler owner Stellantis, expanded its efforts Wednesday after 8,700 workers walked off the job at a Ford plant in Kentucky.