Amid low unemployment rates, new facility start-ups and a shrinking pool of available labor, some meat processing facilities are struggling to keep doors open and lines moving. Labor — its availability and cost — has quickly become a top concern for many of the industry’s leading operators. In this highly competitive environment, traditional strategies such as raising wages have been minimally effective, forcing companies to look for creative approaches to recruit and retain workers.
Companies must step up their focus on operational improvements that can improve yields and reduce labor needs. The traditional approach of treating employees as expendable is no longer an option. Labor costs account for an estimated 60 percent to 70 percent of average plant operating expense, and employers are reluctant to make any sizable adjustments.