Farmer John meatpacking plant in Vernon to close next year

Meatpacking big Smithfield Meals stated Friday it should shut its solely California plant subsequent 12 months, citing the escalating value of doing enterprise within the state.

The Farmer John meatpacking plant in Vernon will shut down in February, with its 1,800 workers receiving severance and job placement assist together with bonuses for individuals who select to remain on the job till the closure, stated Jim Monroe, vice chairman of company affairs.

Some employees, who on common earn about $21 per hour, additionally can have alternatives to relocate to different services owned by the Virginia-based Smithfield Meals Inc.

The Vernon plant slaughters pigs and packages merchandise akin to ham and bacon. Some operations will likely be moved to different services within the Midwest, however the general discount in processing capability is prompting Smithfield to scale back its sow herd in Utah. The corporate additionally stated it’s exploring methods to exit its farms in California and Arizona.

Monroe stated working prices in California are a lot greater than in different areas of the nation, together with taxes and the worth of water, electrical energy and pure fuel.

“Our utility prices in California are 3 1/2 occasions greater per head than our different places the place they do the identical kind of labor,” he stated.

The shutdown will not be anticipated to scale back provide or enhance prices on merchandise, and Farmer John Merchandise will nonetheless be offered in California, Monroe stated.

“There received’t be any influence on our prospects,” he stated.

The Vernon plant has been the goal of repeated protests by animal rights activists over its therapy of hogs. It additionally was hard-hit throughout the COVID-19 pandemic, with some 300 workers uncovered to infections in 2020. A number of have been hospitalized.

California’s Division of Occupational Security and Well being fined Smithfield Meals about $60,000 for security violations that uncovered employees to an infection.

Smithfield Meals was based in Smithfield, Virginia, in 1936 and based on its web site supplies greater than 40,000 jobs in the US. It was acquired in 2013 by Hong Kong-based WH Group.