Industry News

Mountaire awaits court decisions

A new Mountaire Farms Inc. could emerge as a branded Eastern Shore poultry label with new labor standards after a major expansion and legal wranglings over compensation for line workers in processing plants, reports Delmarva Now.

News last week that Mountaire had a purchase agreement to buy most assets of local competitor Allen Family Foods Inc. of Seaford, Del., coincided with key developments in separate employee lawsuits filed against Mountaire in federal court and a state court in North Carolina.

The outcome of the cases could cost Mountaire millions of dollars annually in additional compensation to workers at poultry processing plants for time spent immediately before and after their shift donning and doffing protective gear. Workers could stand to earn at least $12 more a week in pay.

In the purchase agreement, Mountaire would buy Allen hatcheries in Seaford and Dagsboro, the Seaford administrative office, a Seaford feed mill, processing plants in Harbeson and Cordova and a rendering plant called JCR Enterprises in Linkwood. There have been no comments about the Allen employees, totaling more than 2,400 people in Delaware, Maryland and North Carolina.

On June 8 in Raleigh, a federal court held that certification and notice were appropriate under both federal and state wage and hour laws, meaning that current and former chicken processing workers have two years to join a class-action lawsuit if they believe the poultry producer violated federal and state labor law by not compensating them for time spent donning and doffing, cleaning and sanitizing safety and sanitary equipment and gear.

The lawsuit, Romero and others vs. Mountaire Farms Inc. was initially filed in October 2009 in U.S. District Court for the Eastern District of North Carolina, alleging that the company deprived them of wages for required daily time spent onsite preparing to start and to quit work, Hernandez said.

 

Source: Delmarvanow.com

You must register or login in order to post comments.

MARKET VIDEO

Multimedia

Videos

Image Galleries

Podcasts

The FSMA and the meat industry
Tom Egan, vice president, Industry Services/Membership, for PMMI, adds his thoughts on how FSMA will impact meat processers and what equipment suppliers are doing to present more sanitary design options.
More Podcasts

National Provisioner

April 2012 Cover

2012 April

Check out the April 2012 edition of National Provisioner
TABLE OF CONTENTS SUBSCRIBE

Independent Processor

April 2012 Cover IP

2012 April

Check out the April 2012 edition of Independent Processor
TABLE OF CONTENTS SUBSCRIBE

Provisioner Store

NP_Cover0312.gif
The National Provisioner Source Book

The Sourcebook is an exclusive buyer’s guide and reference tool for product and supplier information in the meat, poultry and seafood marketplace.

More Products

Sourcebook

SourcebookA complete reference guide to supplies. Go to NP's Sourcebook now to check out the latest and greatest in the meat and poultry processing business.

STAY CONNECTED

facebooklogo twitterlogo  linkedinlogo