On October 24, 1971, workers at American Crystal Sugar Company ended a week-long strike after a decisive vote to accept a new three-year contract. Over 2,000 members of the Grain Millers Union participated in the vote, with more than 85% endorsing the agreement, signaling a significant resolution to the labor dispute affecting seven plants, including four located in the Red River Valley.
The contract stipulates a 32% basic pay increase over three years, with an immediate 12% raise in the first year. Improved fringe benefits also form part of the agreement, which prompted the workers to return to their posts after negotiations had previously stalled.
Eugene Panzer, the District Two secretary for the American Federation of Grain Millers Union, confirmed the tally on the evening of October 23, stating that out of 1,064 votes cast, more than 900 were in favor of the tentative contract. Panzer immediately informed all local union presidents of the results, and the International Union president, Roy Wellborn, expressed satisfaction with the outcome.
Workers Resuming Operations Across Multiple States
Union meetings were held simultaneously across all local chapters on the day of the vote. In East Grand Forks, local union president Harry Hann reported that 113 voted in favor of the new contract, compared to only seven against it. “I am really happy for everyone that the vote was strongly in favor,” Hann remarked.
With the formal acceptance of the contract, all seven mills began preparations to resume operations. Panzer noted that the Drayton plant had already returned workers to their posts on the night of the vote, with expectations to start processing sugar by the following day. However, he cautioned that a full return to regular operations could take two to three days as the plants needed to reheat machinery and boilers.
Alongside the pay increase, the new contract also includes several enhancements to employee benefits. These improvements comprise a new severance program, updated disability payment clauses, increased hospital and medical premium coverage, an additional holiday, a night differential pay scale, added vacation time for long-serving employees, and an increase in holiday pay to double time and one-half.
The workers’ strike initially commenced when negotiations between union and company officials broke down, following the expiration of the previous contract on August 1. Although specific wage figures were not finalized at the time, it was estimated that under the previous agreement, average pay hovered around $3.50 per hour, with a range between $3.10 and $3.90 depending on job classification.
The resolution of this labor dispute marks a significant moment for workers at American Crystal Sugar Company, particularly in the context of ongoing discussions about wages and working conditions in the agricultural sector. As operations resume, union leaders and workers alike express optimism about the future and the positive impact of the newly negotiated terms.
