Union workers and meatpackers in Austin have rejected a four-year contract proposal from Hormel Foods Corp., setting the stage for further discord and a potential strike in the company's hometown.
The United Food and Commercial Workers Local 663 said in a statement Friday that workers overwhelmingly voted against Hormel's latest proposal for a new contract. The union, representing more than 1,700 workers in Austin, is calling on the company to return to the negotiating table.
"Hormel's record profits are just wages not shared fairly with the rest of us," the UFCW bargaining committee said in the statement. "The reality is that we keep Hormel running. We demand that Hormel does better and comes to the table for a fair agreement quickly."
Hormel officials say both sides have agreed to a contract extension through Oct. 8.
"We are disappointed in the vote, especially given the significant contract package offered, however we remain optimistic that we will reach agreement," the company said in a statement. "Hormel Foods has had strong working relationships with the UFCW for decades, including Austin, and remain confident that these positive relationships will continue as we finalize these new agreements."
Negotiations for a new four-year contract between workers and Hormel started in July. The current contract expired on Sunday.
Meatpackers are pushing for better pay, pensions and insurance costs among other issues. The union's final offer to Hormel last week included $6.25 wage increases by September 2025.
It's unclear what Hormel's final offer contains. The company offered a $2.15 raise over four years in an Aug. 30 proposal, the latest that's publicly available. UFCW officials have publicly released negotiation documents leading up to a meeting last week, but both Hormel and the union declined to release the details behind the company's latest proposal.