Fast Food Nation - Eric Schlosser [90]
In 1995, ConAgra agreed to pay $13.6 million to settle a class-action lawsuit that accused the company of having conspired with seven other firms to fix prices in the catfish industry. For more than a decade, ConAgra executives allegedly spoke on the phone to, or met at motels with, their ostensible rivals to set catfish prices nationwide. According to the plaintiffs in the case, ConAgra’s price-fixing scheme gouged independent wholesalers, small retailers, and consumers.
In 1997, ConAgra paid $8.3 million in fines and pleaded guilty in federal court to charges involving wire fraud, the misgrading of crops, and the addition of water to grain. According to the Justice Department, ConAgra cheated farmers in Indiana for at least three years by doctoring samples of their crops, making the grain seem of lower quality in order to pay less for it. After buying the grain at an unfair price, ConAgra employees sprayed water on it and thereby fraudulently increased its weight, then sold it and cheated customers.
the new industrial migrants
HAVING BROKEN THE UNION at the Greeley slaughterhouse, Monfort began to employ a different sort of worker there: recent immigrants, many of them illegals. In the 1980s large numbers of young men and women from Mexico, Central America, and Southeast Asia started traveling to rural Colorado. Meatpacking jobs that had once provided a middle-class American life now offered little more than poverty wages. Instead of a waiting list, the slaughterhouse seemed to acquire a revolving door, as Monfort plowed through new hires to fill the roughly nine hundred jobs. During one eighteen-month period, more than five thousand different people were employed at the Greeley beef plant — an annual turnover rate of about 400 percent. The average worker quit or was fired every three months.
Today, roughly two-thirds of the workers at the beef plant in Greeley cannot speak English. Most of them are Mexican immigrants who live in places like the River Park Mobile Court, a collection of battered old trailers a quarter-mile down the road from the slaughterhouse. They share rooms in old motels, sleeping on mattresses that cover the floor. The basic pay at the slaughterhouse is now $9.25 an hour. Adjusted for inflation, today’s hourly wage is more than a third lower than what Monfort paid forty years ago when the plant opened. Health insurance is now offered to workers after six months on the job; vacation pay, after a year. But most of the workers will never get that vacation. A spokesman for ConAgra recently acknowledged that the turnover rate at the Greeley slaughterhouse is about 80 percent a year. That figure actually represents a decline from the early 1990s.
Mike Coan candidly discussed the whole subject during a 1994 interview with Business Insurance, an industry trade journal. At the time, he was the corporate safety director of ConAgra Red Meat. “There is a 100 percent turnover rate annually,” Coan said, in an article that applauded Monfort’s skill at keeping its insurance costs low. Another ConAgra meat executive agreed with Coan, noting that “turnover in our business is just astronomical.” While Monfort did keep some long-term employees, many slaughterhouse jobs needed to be filled several times every year. “We’re at the bottom of the literacy scale,” Coan added; “… in some plants maybe a third of the people cannot read or write in any language.”
During a federal hearing in the 1980s, Arden Walker, the head of labor relations at IBP for the company’s first two decades, explained some of the advantages of having a high turnover rate:
Counsel: With regard to turnover, since you [IBP] are obviously experiencing it, does that bother you?
Mr. Walker: Not really.
Counsel: Why not?
Mr. Walker: We found very little correlation between turnover