Thousands of meatpacking workers at the JBS beef plant in Cactus will soon see higher pay and improved retirement security, thanks to a new labor agreement negotiated by UFCW Local 540 — a major win for union workers in a right-to-work state.
The deal raises starting wages to $23.60 an hour, retroactive to June 2024, with another raise set to take effect this month. It also replaces the plant’s previous 401(k) setup with a company-funded pension, ensuring workers build retirement savings automatically — a rare gain in an industry often marked by high turnover and physical strain.
“In Texas, where the minimum wage is still $7.25, starting at nearly $24 an hour is life-changing,” said Celestino Rivera, secretary-treasurer and packinghouse director for UFCW Local 540. “It’s not just a raise — it’s a path toward a better life.”
The Cactus plant employs around 3,600 workers, 85% of whom are union members. Rivera, who lives in Plainview, has represented the facility for decades and spent 25 years working on the line at Cargill Meat Solutions before becoming a full-time union official.
The JBS meat processing plant in Cactus.
Raising the floor — and the future
Previously, workers had access to a 401(k), but participation was voluntary and contributions came out of workers’ paychecks. Many skipped enrollment. The new pension plan changes that — it’s based on hours worked and entirely company-funded, meaning employees will accrue retirement benefits without needing to opt in.
“With the 401(k), if you didn’t sign up or couldn’t afford the deductions, you missed out,” Rivera said. “Now, no matter what, they’ll have something waiting for them down the road. That’s peace of mind.”
In addition to retirement improvements, the contract also:
Guarantees daily overtime pay after 8 hours and weekly overtime options.
Preserves the right for workers to decline extra hours without penalty.
Enhances funeral leave, healthcare coverage, and on-site union representation throughout production shifts.
Rivera said the raises and benefits come at a critical time, especially for workers in remote areas like Cactus, where housing options are limited and economic opportunities can be scarce.
“This kind of job can keep a family afloat,” he said. “But it’s hard work — and without protections, it’s even harder.”
Beyond the paycheck
The meatpacking industry is known for its demanding conditions and high injury rates. Rivera said the union plays a direct role in monitoring workplace safety — from ensuring proper equipment is provided to tracking injury patterns across departments.
“We’re not just at the table during negotiations — we’re in the building, every day,” he said. “If someone gets hurt or sees a safety risk, we’re there to step in. That makes a difference.”
Rivera recalls starting at $5 an hour in 1977. Seeing today’s workers walk in at more than $23 is something he calls “incredible progress.”
“It’s not just numbers on paper,” he said. “We’ve had workers make $30 or $40 an hour in overtime. We show them their pay stub and say, ‘This is what your union membership is doing for you.’”
Still, Rivera said there are common misconceptions — especially in states with less union presence — that organized labor is unnecessary or outdated.
“Some people think, ‘I can negotiate for myself.’ But can you negotiate a pension, guaranteed overtime, and a 40-year presence in your plant on your own? That’s what we bring to the table,” he said.
Building a national standard
The contract took nearly a year to finalize and involved collaboration between UFCW locals across the country, including from Arizona, Colorado, and Nebraska. While the Cactus plant is located in the Texas Panhandle, Rivera emphasized that the deal is part of a broader effort to uplift meatpacking workers nationwide.
“We worked together to craft something that benefits everyone — not just in Texas, but in every facility covered by this agreement,” he said.
Though Rivera didn’t reveal specific goals for the next round of negotiations, he said the union will continue pushing for better pay and stronger protections — especially in high-risk industries like meatpacking.
“These are careers,” he said. “And our job is to make sure that if you put in the years, your work is respected, protected, and rewarded.”
This article originally appeared on Amarillo Globe-News: Union contract raises pay, secures pension for JBS Cactus employees