Strike underway at large Tyson beef processing plant in Amarillo

by Talk Business & Politics staff ([email protected]) 4,070 views 

More than 3,000 workers at Tyson Foods’ large beef processing plant in Amarillo, Texas, are on strike in a push for more pay and to force the Springdale-based company to address allegations of unfair labor practices.

The strike, first reported by Bloomberg News, was approved by 98% of the Teamsters Local 577 members in a June 27 vote. According to the union, approximately 3,100 workers at the plant are represented by the union.

Al Brito, president of the Teamsters Local 577 said the Amarillo plant is “essential” to Tyson’s beef supply chain.

“We are bargaining with one of the most repulsively greedy and amoral corporations in the entire country. Last year, Tyson’s CEO made 525 times that of the median worker,” Brito said in a statement. “This facility is essential to the beef supply chain, but if Tyson’s corporate leadership doesn’t start demonstrating some basic humanity, we will be forced to take action.”

Numerous attempts to contact Tyson Foods were unsuccessful.

Tyson in August 2022 announced a $200 million investment in the Amarillo plant to expand operations, including a new employee locker rooms and cafeteria. The work added 143,000 square feet to the facility and was to set to be complete in late 2024. At the time, Tyson Foods said it employed 4,000 at the plant with an annual payroll of $180 million.

Tyson has struggled in recent years with its beef business. The company reported May 5 in its first fiscal quarter earnings an adjusted quarterly loss of $149 million in the beef segment, wider than the $34 million lost a year ago. Beef sales totaled $5.196 billion, up from $4.954 billion a year ago. Sales volume was down 1.4% but prices rose 8.2% in the year over year period. Tyson said it expects an adjusted operating loss between $200 million and $400 million for the fiscal year ending Oct. 1.

The Amarillo plant is one of the company’s largest beef processing plants. Other Tyson beef and packaging plants include Dakota City, Neb., Denison, Iowa, Pasco, Wash., Columbia, S.C., and Broken Bow, Okla.

The Tyson Foods share price (NYSE: TSN) closed Monday at $55.94, down 70 cents. During the past 52 weeks the share price has ranged between $66.88 and $54.01.