Tyson suspends Waterloo plant managers amid COVID betting allegations

The Associated Press reported Nov. 19 that Tyson Foods has suspended top officials at its plant in Waterloo, Iowa, amid allegations of a betting pool for supervisors and managers to wager on how many plant employees would test positive for COVID-19.

Tyson President and CEO Dean Banks said in a statement that the company expects every team member to “operate with the utmost integrity and care in everything we do.”

“We are extremely upset about the accusations involving some of the leadership at our Waterloo plant,” his statement reads. “We have suspended, without pay, the individuals allegedly involved and have retained the law firm Covington & Burling LLP to conduct an independent investigation led by former Attorney General Eric Holder. If these claims are confirmed, we’ll take all measures necessary to root out and remove this disturbing behavior from our company.”

The story came to light from reporting by the Iowa Capital Dispatch, over new amendments to a wrongful death lawsuit tied to COVID-19 infections at the Waterloo pork processing plant. The family of Isidro Fernandez sued the company, alleging that he was exposed to the virus at the Waterloo plant and that Tyson Foods was guilty of “willful and wanton disregard for workplace safety.” According to the Dispatch, the lawsuit alleges that during the initial stages of the COVID-19 pandemic, Tyson Foods ordered employees to report for work, meanwhile supervisors wagered money on the number of workers who would get sick.

 Among the allegations in the lawsuit against Tyson Foods and company officials, according to the Dispatch:

• In mid-April plant manager Tom Hart organized a “cash-buy-in, winner-take-all, betting pool” for supervisors and managers to bet how many plant employees would test positive for COVID-19.

• John Casey, an upper-level manager, is alleged in the suit to have explicitly directed supervisors to ignore the symptoms of COVID-19. In one instance it was reported an employee vomited on the production line, and managers allowed him to continue working and return to work the next day.

• In late March or early April, as the pandemic began to spread across Iowa, managers at the Waterloo plant started to avoid the floor in fear of contracting the virus, instead delegating managerial authority to low-level supervisors with no management training or experiences.

• Tyson paid $500 “thank you bonuses” to employees who turned up for every schedules shift for three months, which allegedly incentivized sick workers to continue to report for work.

The AP reports that at the time of the alleged betting, local officials were pressuring the plant to shut down as a safety precaution. But the company argued that staying open and processing nearly 20,000 hogs per day was critical to the meat supply of the United States and provided a vital market for farmers.

According to the Dispatch, Tyson executives were lobbying Iowa Gov. Kim Reynolds for COVID-19 liability protections that would shield the company from lawsuits. Reynolds did declare that only the state government, and not local governments, had the authority to close businesses in response to the pandemic.

The Dispatch reports that even though the case was initially filed in state court, Tyson requested that it be moved to federal court. This is due to President Donald Trump invoking his authority under the Defense Production Act on April 28, which ordered meat and poultry processing companies to continue to operate for the nation’s food security during the pandemic.

The AP reports that Tyson has asked a federal judge to dismiss the lawsuits, arguing that under Iowa law the workers’ compensation system is the remedy for workplace injuries. Tyson lawyers also argue that the plaintiffs have failed to show that the deceased workers contracted the virus at the plant and not some place else in the Waterloo community.

According to the AP, the virus spread through the Waterloo plant and ultimately infected more than 1,000 of its 2,800 workers, killing six and sending many more to the hospital. The outbreak also spread to the broader Waterloo community.

Jennifer M. Latzke can be reached at 620-227-1807 or [email protected].