Fast Food Nation

The company had been based in the state for almost

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Unformatted text preview: ing its insurance costs low. Another ConAgra meat executive agreed with Coan, noting that “turnover in our business is just astronomical.” While Monfort did keep some long-term employees, many slaughterhouse jobs needed to be filled several times every year. “We’re at the bottom of the literacy scale,” Coan added; “… in some plants maybe a third of the people cannot read or write in any language.” During a federal hearing in the 1980s, Arden Walker, the head of labor relations at IBP for the company’s first two decades, explained some of the advantages of having a high turnover rate: Counsel : With regard to turnover, since you [IBP] are obviously experiencing it, does that bother you? Mr. Walker: Not really. Counsel : Why not? Mr. Walker: We found very little correlation between turnover and profitability… For instance, insurance, as you know, is very costly. Insurance is not available to new employees until they’ve worked there for a period of a year or, in some cases, six months. Vacations don’t accrue until the second year. There are some economies, fra...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.

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