Update: Teamsters vote to strike at Iowa Cargill plant

CEDAR RAPIDS — Roughly 100 workers at a Cargill plant in Cedar Rapids voted Tuesday to go on strike after being unable to reach an agreement on a new contract.

Teamster Local 238 in Cedar Rapids sent out a news release Monday evening warning of an imminent strike, claiming Cargill had refused to meet “the fair and just demands of its workers.” The union represents about 100 employees across a range of positions at the Cargill corn milling plant in Cedar Rapids. The bargaining unit’s contract expired at midnight Monday, according to the Teamsters.

Working without a union contract, members met Tuesday afternoon and voted “overwhelmingly” to strike, according to a union spokesman.

Cargill, in a statement Monday evening, said it still was in negotiations with the union and that the Cedar Rapids facility “is operating business as usual.”

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The Teamsters said is has been in negotiations with Cargill over wages and working conditions, but has been met with resistance. A Teamsters representative said it is “seeking fair and competitive wage increases for its members to ensure Cargill retains skilled workers amidst a tight labor market.”

“The union has been clear that a reasonable raise is necessary for employees to keep up with industry standards and the rising cost of living,” a union spokesman said, without specifying the wage increase requested and other deal points.

The union also would not say what Cargill was willing to offer, other than it did not provide sufficient wage increases to stay competitive compared with similar industries.

“Cargill has made it clear that they are unwilling to respect the workers who keep their operation running. Our members are simply asking for what they deserve: fair pay for the work they do,” Scott Punteney, business agent for Teamsters Local 238, said in a statement. “If the Company continues down this path, a strike is imminent. We will not back down until Cargill recognizes the value of its workers and does right by them.”

The union said it remained hopeful that Cargill would continue bargaining in good faith and avoid disrupting operations.

The Minnesota-based crop trader and food maker employs more than 160,000 people in 70 countries, and has facilities in Cedar Rapids and elsewhere in Iowa.

Cargill, one of the largest privately owned companies in the world by revenue, last month reported annual revenue fell to $160 billion, a nearly 10 percent drop from the previous year. This was the first time the company's revenue had declined since 2019, and the largest drop in a decade. The decline was due to low commodity prices and a global glut of agricultural production, according to the company.

Cargill Chief Executive Officer Brian Sikes wrote in a letter to stakeholders that “the marketplace our people navigated this year was extremely challenging.”

“As we look to the future, our teams are sharply focused on achieving greater efficiency and profitability across our businesses while driving growth and greater value for our customers and communities around the world,” Sikes wrote.

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