Press Release

Smithfield Statement on UFCW Campaign

Smithfield, Va. (June 19, 2006) This attack on Smithfield Foods - which is orchestrated by one of the nation's largest, richest, and most aggressive labor unions - appears to have more to do with helping the union than with helping Smithfield employees.

The United Food and Commercial Workers' (UFCW) campaign is intended to cause customers to stop buying our products. If it succeeds, it will hurt the very people it purports to help -- the 14,000 employees of Smithfield Packing in Virginia, North Carolina, Maryland, and Florida.

An article in the Richmond Times-Dispatch Sunday, June 18, by a supporter of the union made the campaign's motive clear: He wrote:

"The effort has important ramifications for organized labor in the South. As the percentage of union-represented workers in the nation as a whole has fallen, trade unions find high barriers to Southern organizing efforts. 'Right to work' laws and low union membership make the South often hostile territory to organizing. Nationally, the labor movement's impact on politics and legislation has faltered."

Clearly, this campaign is politically motivated.

Smithfield consistently respects the right of it employees to organize and their decisions as to whether they will join a union. Many of our processing plants have had union representation for years. Smithfield subsidiaries have negotiated labor contracts with the Teamsters, Laborers and United Food and Commercial Workers (UFCW) unions covering literally thousands of employees in many states, and we have had good working relationships with these unions.

The employees in Tar Heel, N.C., have twice voted against unionization, once in 1994 and again in 1997. While our company has disagreed with the decisions reached by the National Labor Relations Board regarding these elections and filed appeals in those cases, the fact is that the UFCW has been free to seek another election at Tar Heel during the last nine years. They haven't done so, because they lack the votes to win. Instead, they have also filed appeals in the courts and are now taking the matter to the court of public opinion rather than to the Tar Heel employees.

Smithfield has now ceased to oppose or appeal any decision of the courts with regard to the organizing effort at Tar Heel. We simply want to concentrate on serving our customers and building a strong relationship with our employees.

Perhaps efforts by our company-such as building a state-of-the-art medical center across the street from our Tar Heel plant solely for Smithfield's employees and their families, or providing a pay and benefit package that is one of the best in the three-county area-have led the Tar Heel employees to conclude that they are getting a fair shake without additional representation.

We will continue to respect our employees' right to choose and the choices that they make. Our guiding principle is fairness-by both sides. Smithfield has made some missteps in the past, but the union's allegations are unfounded and outdated.

Regarding working conditions at our Tar Heel facility, there is no doubt that these are demanding jobs. That is why we place such great emphasis on the safety, health and well-being of our employees. We strive for continuous improvement to make Smithfield a safe, healthy place to work, because we realize how important our employees are to our business and the community.

We have seen a downward trend in worker injuries in our facilities over the last few years. Smithfield facilities have consistently been recognized for safety excellence in an award program administered by the National Safety Council.

Last spring Tar Heel concluded two international safety and health inspections and received excellent results. North Carolina's OSHA division completed a two-month wall-to-wall inspection of the facility. Its director praised our efforts to maintain a safe workplace. OSHA's district supervisor wrote, "We commend you on maintaining your workplace in this manner and we appreciate your commitment to protecting the health and safety of your employees."

I encourage anyone interested in the facts to read the Smithfield Foods Corporate Social Responsibility Report for 2005 for more information on our employee safety initiatives. The report is available online at http://www.smithfieldfoods.com/.

This strong safety record reflects the Smithfield of today. Smithfield is, and has long been, a progressive company. Our environmental performance today is unrivaled in the industry. We have been recognized by the Environmental Protection Agency as a leader in environmental stewardship. Smithfield's food production methods are the best in the world, making high-quality meat products healthier and more affordable each year.

We take our commitment to the well-being of our employees seriously, and we appreciate the opportunity to present both sides of the story.

Smithfield Packing Co., headquartered in Smithfield, Va., operates 12 plants in Virginia, North Carolina, Maryland and Florida. The company employs more than 14,000 people. Its major brands include Smithfield, Gwaltney, Stadler, Esskay, Valleydale, Sunnyland and Lykes. Smithfield Packing is a wholly owned subsidiary of Smithfield Foods.

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