TSN Tyson Foods

By Jacob Bunge 

Tyson Foods Inc. plans to raise hourly wages for about 34,000 employees at its U.S. chicken plants, part of an effort to better attract and retain workers in a tightening labor market.

Production, maintenance and refrigeration workers at more than 50 of Tyson's facilities will see higher starting pay, and experienced workers will receive raises, Tyson said Friday.

"We're increasing pay to remain competitive in the labor markets where we operate and to retain the quality team members we need to keep running successfully," said Noel White, president of Tyson's poultry division.

Tyson, the largest U.S. meatpacker by sales, is the latest major U.S. company to lift pay as competition for lower-paid workers rises. Wal-Mart Stores Inc. in February announced plans to increase pay for U.S. employees to at least $10 an hour by 2016, while McDonald's Corp. in April said it would raise wages by more than 10% for staff at the U.S. restaurants the company operates. Both companies are customers of Tyson.

The U.S. unemployment rate was 5.1% last month, down from 9% during the same month four years ago, according to federal data.

Effective Nov. 1, Springdale, Ark.-based Tyson will boost starting pay for production workers at nearly 40 of its chicken plants to at least $10 an hour, an 11% to 25% increase over some current rates, according to the company. Increasing the starting rate and other increases will boost average hourly pay for workers who have held their positions for more than a year to more than $12 an hour, and maintenance and refrigeration workers at 51 chicken plants will receive pay increases of varying amounts, Tyson said.

While Tyson reviews its chicken-plant wages annually, the move to raise starting pay is "not routine," a Tyson spokesman said. The increases aren't tied to any labor agreement, he said.

Tyson shares rose 26 cents to close at $47.44.

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(END) Dow Jones Newswires

October 23, 2015 18:33 ET (22:33 GMT)

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