| FOR IMMEDIATE RELEASE November 21, 2000 |
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Smithfield Faces New Opposition in IBP Takeover Effort The 1.4 million member United Food and Commercial Workers International Union (UFCW) has called on the United States Department of Justice to "vigorously investigate" Smithfield Foods' proposed merger with IBP; and to protect farmers, consumers and workers who could bear the brunt of the unwelcomed takeover . Smithfield is the largest pork producer in the country, and IBP is the second largest producer. Combined the two companies would control 40 percent of the pork market. The industry is already highly concentrated with the top four producers controlling 60 percent of production. The UFCW is the largest union of meatpacking workers in North America as well as the largest union of both Smithfield and IBP workers. According to the UFCW letter sent to Attorney General Janet Reno, Smithfield itself has effectively recognized that the merger is in violation of federal antitrust laws and would lead to increased concentration of pork production. UFCW International President Doug Dority further stated that any so-called "divestiture fixes," a strategy where parts of a merged company are sold off in order to avoid antitrust action, could have severe adverse consequences for hog farmers, consumers, communities dependent on the meatpacking industry and workers. Plant closings, job losses, erosion of local tax bases, more restricted outlets for farm products and loss of competition for consumers have all resulted from the corporate shell games that come with mergers and divestitures. The UFCW offered its cooperation and assistance to Justice Department investigators. |
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