On October 24, 1971, approximately 2,000 workers from the Grain Millers Union returned to their jobs at the American Crystal Sugar Company after a week-long strike. The workers voted overwhelmingly, with more than 85% in favor of a new three-year contract that promises a substantial pay increase and enhanced fringe benefits. This agreement marks the end of the shutdown at seven plants across the United States, including four located in the Red River Valley.
The union members had initially walked off the job on October 17, following stalled negotiations with company officials. The previous contract had expired on August 1, leading to demands for improved compensation and working conditions. According to Eugene Panzer, secretary for the union’s District Two, the vote to resume work was finalized on the evening of October 23, following local union meetings held simultaneously across various sites.
Details of the New Contract
The newly ratified contract includes a 32% basic pay increase over its duration, with a notable 12% increase in the first year alone. Additionally, the agreement introduces various improvements to fringe benefits, which were a critical point of negotiation for the workers. These benefits encompass a new severance program, enhanced disability payment clauses, increased hospital and medical premium coverage, and additional vacation time based on company service longevity.
Union president Roy Wellborn expressed satisfaction with the outcome, noting that the substantial majority of those voting indicated a clear desire for the new terms. “Wellborn was pleased with the acceptance of the contract, as the strong support reflects the overall sentiment of the members,” Panzer noted.
Resumption of Operations
As the strike concluded, operations at all seven facilities are set to ramp up promptly. The company has indicated that the Drayton plant was prepared to have workers back on duty immediately, with some operations potentially starting as early as October 24. “It will be a gradual process to return to full capacity, as we need to ensure that the necessary machinery and systems are operational,” Panzer explained.
The plants affected include those located in Drayton, North Dakota, and Crookston, Moorhead, and East Grand Forks, Minnesota, along with facilities in Chaska, Minnesota, Mason City, Iowa, and Rocky Ford, Colorado. While the exact financial implications of the new wage structure remain to be detailed, under the previous contract, average pay was estimated at around $3.50 per hour, with variations depending on specific job classifications.
The successful negotiation marks a significant moment for the Grain Millers Union and its members, illustrating the power of collective bargaining. With operations set to resume and improved terms in place, the workers are optimistic about the future as they return to their roles in the sugar production industry.
