Strike Ends: Teamsters Ratify New Contract at AMPI Paynesville Facility

As the picket lines disappear, the focus returns to the production floor, ensuring the milk supplied by hundreds of upper Midwest farm families continues to reach the market without further delay.

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(Farm Journal)

The strike at the Associated Milk Producers Incorporated (AMPI) dairy facility in Paynesville, Minn., has officially concluded. Early Sunday afternoon, members of Teamsters Local 471 overwhelmingly voted to ratify a new contract, bringing an immediate end to the work stoppage that began on Saturday morning.

According to Matt McQuaid, media coordinator for the International Brotherhood of Teamsters, the ratification marks a successful resolution for the more than 60 workers at the critical cheese processing and shipping hub. The swift agreement prevents a long-term disruption to the Midwest’s dairy supply chain.

End to a Year-Long Deadlock

The ratification follows nearly a year of stalled negotiations and a weekend walkout triggered by what the union described as “unfair labor practices” and a lack of a fair, comprehensive proposal from the company. Prior to this agreement, workers had been operating without a wage increase for 12 months, even as the cost of living continued to climb.

While the specific terms of the newly ratified deal were not immediately detailed, the union’s core demands focused on securing:

  • Meaningful wage increases: addressing the year-long freeze
  • Succcessorship projections: ensuring if the facility changes ownership, workers retain their jobs and union contract
  • Heath care stability: gaining more flexibility and security in coverage.

“The workers secured significant wage increases and language that protects standards if the company is sold or changes ownership, as well as the ability to move into a Teamster health insurance plan which will significantly reduce costs to members,” McQuaid said.

Securing the Cooperative’s Network

The end of the strike is a significant development for the broader AMPI cooperative, which is owned by 685 farm families across Wisconsin, Minnesota, Iowa, Nebraska and the Dakotas. These farmers market approximately 4.9 billion pounds of milk annually through a network of six manufacturing plants.

Because the Paynesville plant is a vital link in this multi-state infrastructure — specializing in cheese production — a prolonged strike would have created a bottleneck for the cooperative’s 4.9 billion pounds of annual milk production. The “overwhelming” support for the new contract suggests the agreement successfully addressed the primary concerns regarding job security and fair compensation.

Moving Forward

With the contract ratified, operations at the Paynesville facility are expected to resume normal rhythms. Teamsters Local 471, which represents dairy processing and distribution workers throughout Minnesota, had maintained the strike was a necessary last resort to protect the livelihoods of the workers who keep the Midwest cheese supply moving.

“The employees at AMPI in Paynesville, Minn., stood strong in solidarity to win this strike and ratify their first contract. The employer had pushed them around for far too long, and they had had enough,” Lyndon Johnson, Secretary-Treasurer of Local 471 said. “They will have a voice in the workplace without fear and will be supported by the strongest union in the world.”

As the picket lines disappear, the focus returns to the production floor, ensuring the milk supplied by hundreds of Upper Midwest farm families continues to reach the market without further delay.

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