FRESNO, Calif. – Hundreds of workers who were facing potential layoffs in the San Joaquin Valley will get to keep their jobs for at least one more year, following a settlement announced Thursday by the state attorney general.
Attorney General Rob Bonta struck a deal with Western Valley Meat Company to keep around 700 meat factory jobs at a Fresno plant intact, as well as keep the factory fully open, for at least the next 12 months. The agreement was made in order to let an acquisition move forward.
Earlier this year, Western Valley Meat Company purchased a Fresno beef factory owned by Cargill, and had notified employees it planned to cut hundreds of jobs by this month.
According to the attorney general’s office, Cargill and Hanford-based Central Valley Meat – owned by Western Valley Meat Company – are two of the largest beef processing companies in the region. The two companies purchase cattle from local dairy farmers. In the last two years, the Fresno plant processed 300,000 head of culled cattle annually, according to federal data.
“Food is a national security issue. By combining resources and expertise, this acquisition will not only support local dairy farmers but also meet market demand and keep our supply chain intact," Congressman Jim Costa said in a statement following the deal.
But despite the merger getting a greenlight, Bonta’s office, which sued over the merger, still hinted at lingering concerns for the future, namely how the purchase could affect competition. For instance, fewer meat producers could mean less market pressure and lower wholesale prices for farmers.
“Anticompetitive mergers can create other harms, including a reduction in labor market competition, which could lower wages or worsen working conditions for the employees at the Fresno plant,” Bonta’s office stated in a press release following the settlement.
The deal between the state and Western Valley Meat included that workers who remain employed must be offered wages and benefits equal to or better than those offered before the merger.
