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Union workers approve 'historic' new contract with Hormel

Union leaders say the deal provides wage increases of $3 to $6 per hour, along with doubling bereavement leave and protecting health care coverage.

AUSTIN, Minn. — Editor's note: The video above first aired on Sept. 12, 2023. 

Minnesota-based Hormel and union workers officially have a deal, scuttling the prospects of a strike that would impact both the community and consumers. 

Union leaders for the United Food and Commercial Workers (UFCW) Local 663 released details of the deal, which they call "historic," early Thursday. They say workers voted to ratify the contract which provides wage increases of $3 to $6 per hour, doubles bereavement leave, protects healthcare coverage and increases both pension and 401k contributions. 

“Our members who work at Hormel Foods locations in Minnesota, Georgia, Wisconsin and Iowa voted today to ratify a contract that includes the largest wage increase in the company's history," said UFCW International President Mark Perrone. "In addition to gaining hourly wage increases of $3-$6 an hour, the new contract nearly doubles bereavement leave, protects healthcare coverage, and increases both pension and 401k benefits."

Perrone added that while union workers are celebrating the contract with Hormel Foods, the work on ensuring the terms are enforced and Hormel lives up to its commitments will continue. 

The company also lauded the deal and the investment in their employees. 

“We are pleased that we have reached a new, four-year agreement with the unions representing our team members in Atlanta, Ga., Austin, Minn., Algona, Iowa, and Beloit, Wis," Hormel said in a released statement. "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's Austin plant employs over 1,700 union workers. The contract they were working on expired Sept. 10, and shortly after the union voted to reject a company offer, setting the scene for a possible strike like the one that devastated the community back in 1985. 

That strike dragged on for nearly a year, and while ultimately unsuccessful for union workers, the Minnesota Historical Society says it helped raise awareness "of the plight of factory workers and effecting positive change in unions across the United States."

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