In a recent setback for President Biden’s ambitious plan to address competition issues in the meat industry, a jury trial delivered an unexpected blow. However, this defeat is just a single chapter in a broader strategy, as the Justice Department pivots to civil cases against poultry processors. The focus has now shifted to wage suppression, a practice allegedly perpetuated by key players in the industry.
The Secret Meetings: Poultry Industry Survey Group
Annually, representatives from approximately 20 poultry-processing companies, accounting for 90% of the industry’s workforce, convene in a clandestine gathering known as the Poultry Industry Survey Group. This secretive assembly, usually held in May, has come under scrutiny for its potential role in facilitating illegal anti-competitive behavior.
The Consulting Firm’s Role
In the year 2000, the Poultry Industry Survey Group enlisted the services of Weber, Meng, Sahl & Company, a Pennsylvania-based consulting firm. Their task was to conduct a detailed survey of each company’s current and future pay rates. However, as the years passed, concerns arose regarding the firm’s role in potentially providing cover for illegal activities.
Whistleblower or Accomplice? Jonathan Meng’s Dilemma
Jonathan Meng, the chairman of the consulting firm, found himself caught between ethical concerns and the lucrative nature of his contract. Despite expressing reservations and warning about potential antitrust violations, Meng continued with the job. In 2017, fearing legal consequences, group members appointed him their “antitrust guidon,” tasking him with ensuring legal compliance during the conferences.
The Lawsuit and Settlement
In 2019, a class-action lawsuit, Jien, et al. v. Perdue Farms, Inc., et al, was filed against Meng’s company and members of the Poultry Industry Survey Group. The lawsuit alleged that the conferences amounted to a wage-suppression conspiracy. As part of a settlement, Meng detailed his role in the conferences, maintaining innocence and portraying his company as an unwitting instrument of the processors’ misconduct.
Justice Department’s Stance
Contrary to Meng’s portrayal of his firm as an involuntary instrument, the Justice Department named him as a defendant in a civil complaint filed against major poultry processors—Cargill, Sanderson Farms, and Wayne Farms. The government, relying heavily on Meng’s declaration, claimed that processors artificially suppressed compensation, depriving a generation of processing-plant workers of fair wages and a free and competitive labor market.
Conclusion
The battle for fair compensation in the poultry industry has taken a new turn with the focus shifting from criminal prosecutions to civil cases. As allegations of wage suppression cast a shadow over key players, the unfolding legal drama promises to shed light on the intricate web of anti-competitive practices within the industry. The outcome of these cases could have far-reaching implications for the future of fair labor practices in the poultry-processing sector, impacting the livelihoods of hundreds of thousands of workers across the United States.
