Smithfield and Union Settle RICO Case

Posted on October 27, 2008 by Thomas Walker

The Associated Press reported today that Smithfield Foods and the United Food and Commercial Workers International union have settled the company's racketeering lawsuit.

The agreement was reached this morning as the case was about to go to trial in federal court in Richmond, Virginia 

In a joint statement, Smithfield and the union said the deal calls for a union election at the company's slaughterhouse in Tar Heel, N.C. In exchange, the union will end its public campaign against Smithfield, which included product boycotts and other actions.

Smithfield had claimed in its lawsuit that the union's economic threats amounted to extortion and cost the company about $900 million. Union attorneys said using economic pressure to achieve a lawful purpose is not extortion.

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