Dairy workers locked out after labor talks fail

Almost 200 Seattle-area dairy workers who process milk products for the Darigold label will spend Labor Day and the foreseeable future locked out from their jobs.

After more than two months of contract negotiations, WestFarm Foods, a cooperative of 722 dairy farmers, hired replacement workers and locked out 194 Teamsters yesterday from dairy-processing plants in Seattle and Issaquah.

Earlier in the day, workers at the plants — who make and deliver ice cream, milk, butter and other cultured products — rejected the company's latest salary and benefits offer by a 4-to-1 ratio.

At 3 p.m., the company moved other employees around and began operating the plants without the workers. "We have put people in place to run the equipment and we don't expect any significant impact on production," said Rae Klein, spokeswoman for the company.

The labor dispute has simmered since at least June 10, when the two sides first began renegotiating a contract that expired July 31. The company and workers are fighting over wages and benefits, including changes in medical benefits and pensions.

Both sides acknowledge that dairy farmers are struggling with some of the lowest milk prices in 25 years.

Company officials contend the Teamsters Local 66 has been pushing for a lockout from the outset; Teamsters officials maintain that the workers have made years of concessions and have had enough.

"We know the farmers are hurting, but we're hurting, too," said Mark Jones, secretary-treasurer of the local. "We've had 30 years of labor peace with this company, and we don't think they can run these plants without us."

Klein says the locked-out workers make $20 per hour or more.

One of the most hotly debated issues — whether or not the company should outsource the work of some 60 drivers — was resolved earlier in the weekend. The drivers went to work for a contractor at a lower wage, and continued with their delivery routes.

Klein contends the union needs to accept that the market place is changing. "There are only two independent dairy processors left, and the other one is nonunion," she said.

It was unclear yesterday where things would go next. The company has withdrawn its last offer, and no further negotiations are scheduled.

Craig Welch: 206-464-2093 or cwelch@seattletimes.com