In its lawsuit, the Justice Department alleges the companies have been engaged in a multiyear conspiracy to exchange information about the wages and benefits of workers at poultry processing plants to drive down employee competition in the marketplace.
FILE - Chicken is on display in a market in Pittsburgh, July 12, 2022. The Justice Department is expected to file a lawsuit and proposed settlement against some of the largest poultry producers in the U.S. It's part of an effort to end what the government claims have been longstanding deceptive and abusive practices for workers. filed a lawsuit Monday against some of the largest poultry producers in the U.S.
The government contends the data consulting firm helped to share the information about the workers’ compensation with the companies and their executives. By carrying out the scheme, officials allege, the companies were able to compete less intensely for workers and reduce the amount of money and benefits they had to offer their employees, suppressing competition for poultry processing workers across the board, according to court papers.
The suit against the companies was filed with a proposed consent decree — a settlement that would require the companies to pay $84.8 million in restitution for workers who were harmed by the unlawful information sharing network.The settlement would also put in place a federal monitor selected by the Justice Department who would ensure compliance for the next decade.
Laurel, Mississippi-based Sanderson Farms has 17,000 employees and 12 plants. It processes 13.6 million chickens per week.
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