Northwest meat processors facing worker retention problems

Published 8:30 am Monday, March 18, 2024

ALBANY, Ore. — The Pacific Northwest’s meat processing industry has seen an increase in the number of small firms but problems remain with worker retention, an Oregon State University economist says.

People who leave meat processing jobs are turning to work with lower paychecks, said Timothy Delbridge, OSU assistant professor of applied economics.

“This might be a shocking result. … People are leaving for reasons other than money,” he said during a presentation at the Northwest Meat Processors Association annual conference on March 15 in Albany, Ore.

“They’re leaving for jobs that provide a better work-life balance is what we’re seeing,” he said.

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For his analysis, Delbridge reviewed firm and employee wage records from meat processing companies of all sizes.

The Northwest’s labor force has been increasing, thanks to population growth. The region’s meat processing industry has grown from roughly 8,000 to 10,000 workers in the past decade, Delbridge said.

About 10% fewer workers stayed in meat processing when they left a job in 2018-2023 compared to 2013-17, however. And that’s with industry wages outpacing inflation.

Their new jobs pay more per hour, but with fewer hours.

Workers at larger meat processing firms tend to get significantly more hours per employee.

Rebecca Thistlethwaite, OSU Extension Service outreach specialist and director of the Niche Meat Processor Assistance Network, said smaller firms may have fewer and more inconsistent hours to offer — and heavy hours during peak season — also contributing to workers leaving.

Troy Wilcox, executive director of the Northwest Meat Processors Association, said Delbridge’s presentation was surprising.

“I’ve heard so many people say they can’t get employees because they can go to work construction and make more money,” he said. Delbridge’s slides indicated that wasn’t the case.

Wilcox said he hopes to help create better work environments to encourage people to stay at their jobs.

Paul Kiecker, administrator of the USDA Food Safety and Inspection Service, discussed changes to voluntary “Product of the USA“ labeling for meat, poultry and eggs.

As of Jan. 1, 2026, that label will strictly mean animals born, raised, slaughtered and processed in the U.S.

“That’s a little bit different than what current regulations allow for,” Kiecker said, drawing cheers from the audience at the Linn County Fair and Expo Center.

The USDA announced the change, meant to bolster consumer trust and protection and marketplace fairness for small processors, on March 11.

New EPA rules?

Nelson Gaydos, outreach specialist for the American Association of Meat Processors, guessed that new food nutrition and calorie labeling requirements could go into effect in 2026, as well. The USDA already accepts the new format, so businesses might want to start the switch to the new labels, he said.

The U.S. Environmental Protection Agency also is considering more stringent effluent limitation guidelines, and the public comment period ends May 25.

If new rules are adopted, AAMP would consider legal action, Gaydos said.

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