Union members ratify new contract at large Tyson plant in Amarillo, avoid strike

There will be no strike at the large Tyson Foods’ beef processing plant in Amarillo, Texas, with 93% of union members there voting Wednesday (July 2) to approve a new four-year contract and avoid a walkout.

According to officials with Teamsters Local 577, 98% of approximately 3,100 union members who work at the plant voted June 27 to authorize a strike at the large beef processing plant that union officials have said is key to Tyson’s beef supply.

The union was negotiating for better working conditions, and better wages and benefits, including for health care and retirement. On July 1, the union negotiating committee and Tyson officials reached a tentative agreement that was the subject of Wednesday’s membership vote.

According to the Teamsters, the new contract includes a 32% wage increase, more paid time off, and expanded retirement benefits. Other contract items include ratification bonuses and health insurance benefits that begin when hired.

“This victory is what Texas Teamsters are all about — coming together as one so we can fight for a better life for ourselves and our families,” Al Brito, president of Local 577 said in a statement after the vote. “Let this be a lesson to everyone else in the meatpacking industry — if you’re not happy with work, it doesn’t have to stay that way. You can win a better future with the Teamsters.”

“If you work in one of the most dangerous industries in the nation, you should be able to support your family and look forward to retirement,” said Jesse Case, director of the Teamsters Food Processing Division. “Teamster strength is critical for working families in the meatpacking industry.”

Tyson Foods provided this statement: “We are pleased to have reached an agreement with the Teamsters Local 577 that continues to provide a competitive pay and benefits package for our Amarillo team members. The agreement reflects our dedication and continued investment in our team members and the Amarillo community.”

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.