Peter Carstensen

Tyson Foods faces scrutiny over plant closures

by Kim Souza (ksouza@talkbusiness.net)

Tyson Foods may have violated the Packers and Stockyards Act (PSA) in the effort to close large poultry processing operations in Van Buren and Glen Allen, Va., according to Peter Carstensen, law professor at the University of Wisconsin-Madison Law School.

Springdale-based Tyson gave workers at the two plants – almost 1,000 in Van Buren and just under 700 jobs in Virginia – the required 60 days notice that the plants would close on May 12. However, the Packers and Stockyards Act (PSA) requires growers who supply chicken processing plants be given at least 90 days notice before ending a contract.

Carstensen said violation of the PSA and lack of 90-day notice for growers is likely to draw antitrust scrutiny, Carstensen said in a report first published by Reuters. If Tyson is found in violation of the PSA the company could face fines up to $29,270 per contract, he added.

https://talkbusiness.net/2023/03/tyson-foods-faces-scrutiny-over-plant-closures/