U.S. News

On 21 November, at the end of the first shift at the Tyson Foods beef processing plant in Lexington, Nebraska, all workers were called to the lunchroom and told they no longer had jobs. Many gathered afterward in the gravel parking lot. Some wailed and cried out.

“It’s a terrible thing to know that we won’t be able to pay rent, won’t be able to pay the electricity, our cars – all the bills coming our way,” said Constancio Perales, a 64-year-old worker born in Durango, Mexico, who has worked at the plant since 1996 – the last 25 years cutting the bone out of chuck steaks. “It’s very sad that they would fire us like that – just telling us there’s no more work, as if to say go away.”

And the move didn’t seem to make sense. Tyson is one of four beef producers – along with JBS, Cargill and National Beef, known collectively as “the Big Four” – that control 85% of the industry, and their profit margins are at their highest levels in years as consumer prices soar. Tyson had just announced that its profits were up 6.5% over the previous year. Why would the company shut down one of its largest plants, employing 3,200 workers?

In a statement at the time, Tyson said it was working to “right size its beef business and position it for long-term success” and that it will meet consumer demand by increasing production at other company facilities, “optimizing volumes across our network”.