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Union calls for strike at Lakeside beef plant

CHICAGO (Reuters) - The union representing workers at Tyson Foods Inc.'s Alberta, Canada, cattle slaughter plant on Wednesday said it has rejected the company's latest contract offer and will strike on October 12.

Lakeside Packers, based in Brooks, Alberta, responded by saying it will seek Alberta Labor Board permission to allow workers at the plant to vote on the company's latest contract offer.

"We're extremely disappointed the union has refused to allow our team members to vote on our most recent offer, which includes wage increases beyond those recommended by a government mediator," Chris Borgren, manager of the Lakeside beef complex, said in a statement.

Company and United Food and Commercial Workers (UFCW) Local 401 officials met Wednesday morning. The union rejected the company's proposal and issued the strike notice.

"It is not worth taking to the workers. Our position is to go to the streets," Douglas O'Halloran, president of the local union, said of the latest proposal.

The union is opposed to, among other things, the length of the contract, as well as its provisions for vacation pay, sick time, Saturday wages and health care benefits, he said.

The plant, which slaughters more than 3,800 head of cattle a day, has not been unionized for 20 years.

The company's request to the Labor Board was to be submitted Wednesday afternoon. The company said the union has been notified of the request for a vote.

"We believe the vote should occur before any strike commences," said Borgren.

Lakeside's proposal includes a $1 increase in the starting hourly wage to $13 and increases of $1.60 an hour in base wages during the contract period. That would move top hourly production pay to $17.65 in slaughter and $16.75 in processing.

In addition, it would include a new top hourly wage rate of $23.70 for engineers. It proposed shortening the time for new workers to reach top wage rates.

Lakeside's contract proposal covers 51 months. The mediator proposed a 3-1/2-year contract that would have expired within a few months of the UFCW's contract with Cargill's High River plant and on the same day as the UFCW's contract with X.L. Beef's Calgary operations, the company said.

Lakeside said that would have put the beef industry at risk, since Canada's largest beef packing plants could have potentially been idled by labor disputes at the same time.

Despite the union's decision, Lakeside officials currently intend to operate the plant with those workers who are willing to continue to work.

The Lakeside plant currently employs more than 2,400 workers.

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