Meatpacking Industry's Bold Move: Restoring Pensions to Attract American Workers

In a significant shift aimed at revitalizing the American workforce in the meatpacking industry, JBS, one of the world's largest meat companies, has reinstated pension plans for its U.S. employees. This move marks the first introduction of new pension plans in nearly four decades within the sector. ([apnews.com](https://apnews.com/article/2aa1c068d93af66ad40fdf771a50cdbc?utm_source=openai)) The United Food and Commercial Workers union announced that 26,000 workers across 14 JBS facilities will benefit from this new contract. Beyond pensions, the agreement includes paid sick leave, wage increases elevating average pay to $23–$24 per hour, and enhanced safety measures. ([apnews.com](https://apnews.com/article/2aa1c068d93af66ad40fdf771a50cdbc?utm_source=openai)) Historically, the meatpacking industry has relied heavily on immigrant labor, often due to the challenging nature of the work and relatively low wages. However, with increasing labor shortages and a desire to attract American workers, companies are reevaluating their compensation structures. A study highlighted that the national average meatpacking wage of approximately $15 per hour is insufficient to attract domestic workers, suggesting that wages need to be around $22.77 per hour, coupled with benefits like health insurance and signing bonuses, to make these positions more appealing. ([drovers.com](https://www.drovers.com/news/industry/raise-average-wages-meatpacking-industry-attract-new-workers?utm_source=openai)) The reinstatement of pension plans is seen as a strategic move to offer long-term stability and retain workers. Mark Lauritsen, head of the UFCW’s meatpacking and food processing division, emphasized that this contract paints a picture of "long-term stable jobs that are a benefit for the employees, a benefit for the employers, and a benefit for the community they operate in." ([apnews.com](https://apnews.com/article/2aa1c068d93af66ad40fdf771a50cdbc?utm_source=openai)) This development comes amid broader discussions about labor practices in the meatpacking industry. The Protecting America's Meatpacking Workers Act of 2021 aimed to address workplace conditions and safety, highlighting the need for reforms to attract and retain a domestic workforce. ([congress.gov](https://www.congress.gov/bill/117th-congress/house-bill/6250?utm_source=openai)) By reinstating pensions and improving overall compensation, JBS and similar companies are taking proactive steps to make meatpacking jobs more attractive to American workers, potentially reducing reliance on immigrant labor and addressing longstanding labor shortages in the industry.