Local Union 238 members Wayne Masters (left) and Tyler Hilleshiem (right) talk while picketing together outside a Cargill corn flour mill in southeast Cedar Rapids on October 1. Hilleshsiem has been an employee of Cargill for more than 10 years. (Savannah Blake/The Gazette)
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CEDAR RAPIDS — Cargill plans to terminate health insurance for striking workers at its Cedar Rapids corn flour mill, according to a Friday news release from the local Teamsters union representing the workers.
Cargill said in a statement to the Gazette that affected employees who were enrolled in the company’s employee health insurance at the time of the strike will continue to receive benefits through Thursday. If they continue to strike, striking workers are eligible to receive benefits through a federal law called COBRA.
Federal law gives some employees the right to continue health insurance coverage after retirement, and the premiums must be paid by the employee. This allows employees to remain covered by their employer’s group health insurance. The premium is usually fully paid, there are no employer contributions, and administrative fees are added.
Nearly 100 workers at Cargill’s corn flour mill near Cedar River on Southeast 16th Street have been on strike since Oct. 1, accusing Cargill of refusing to give them fair raises. A collective bargaining agreement between 93 Cedar Rapids employees and the Minnesota-based crop trader and food manufacturer expired early in the day.
In a news release, Teamsters Local 238 criticized Cargill’s insurance move as “cruel” and “insensitive.”
“Hundreds of billions of dollars in this company depend on these workers, and yet they are punishing them by stripping them of their health insurance,” said Scott Puntony, business agent for Teamsters Local 238. I chose it for that family.” “This is a shameful tactic” designed to force workers back into dangerous conditions at lower rates than they deserve. ”
Joe Kirchhoff, who heads the striking workers, said: “This is no longer just a question of wages, it’s a question of basic human decency. We have proven that we only care about our interests.”
Cargill, one of the world’s largest privately held companies, reported revenue of $160 billion in its 2024 annual report released in August, down $17 billion from the previous year. This is the first time since 2019 that the company’s sales have declined, and the largest decline in a decade. “The market our employees have navigated this year has been extremely challenging,” Cargill Chief Executive Officer Brian Sykes said in the letter.
The U.S. agricultural market is facing a downturn, with the U.S. Department of Agriculture projecting a decline in net farm income in 2024.
“While we have not reached an agreement with the union committee, we remain open and ready to engage in further negotiations,” the company said in a statement. “We believe Cargill has offered us a fair and competitive package.”
Federal mediators were brought in in hopes of bringing striking workers and company representatives back to the bargaining table.
Union supporters listen to speakers at a rally organized by Teamsters Local 238 in support of striking workers at the Cargill corn milling facility in Cedar Rapids, Oct. 10. (Tom Burton/The Gazette)
Pantony told the Gazette earlier this month that the union revised its proposal from $4.80 an hour over three years to $4.50 an hour over three years, but Cargill did not respond or make a counteroffer.
Puntoni said the current average wage for a Cedar Rapids corn flour mill operator is just under $30 an hour, or about $62,400 a year before taxes for an employee working 40 hours a week, 52 weeks a year.
“It still lags behind many other industries in the city, including Quaker Oats, General Mills, ADM and Diamond V,” Pantony said of the union’s proposed amendment. “Right now, we’re $2.30 to $4.50 (an hour) behind other places. So we try to keep them in line, keep them on par, and keep everyone up to standard.”
Workers have described harsh working conditions, including seven-day work weeks and regular holidays.
“Teamsters Local 238 demands that Cargill immediately restore health care benefits and return to the bargaining table with a fair agreement that respects the contributions of these essential workers,” the union said in a statement.
Comments: (319) 398-8499; tom.barton@thegazette.com
