Instar-owned Windmill Farms faces risks from ongoing labor dispute

A labor dispute covered in blogs from December 2023 and March 2024, continues to plague Instar-owned Windmill Farms, as Instar and Windmill Farms have refused to meet with worker representatives from the United Farm Workers (UFW).

Growing media coverage of the dispute, turnover at the farm, additional voices weighing in, and the refusal of Instar to engage with workers continue to cause risks for Instar investors with funds tied up in Windmill Farms.

In July 2023, Teresa Romero, President of the UFW, communicated with Instar and Windmill Farms, asking to meet to discuss labor issues on the farm, but has been ignored to date. In May 2024, Romero was awarded the Presidential Medal of Freedom, the nation’s highest civilian honor, by President Joe Biden.

In May 2024, Windmill Farms workers organized a hearing with labor leaders and Washington legislators in Seattle to shed light on the struggles at the farm. Media coverage highlighted Windmill Farms workers’ testimony about the intimidation and union busting occurring at the farm:

“The retaliation is there, and the harassment as well,” said current Windmill Farms worker Fredi Quispe, speaking through a translator. “We can go to HR but they won’t do anything about it. It’s like they’re laughing at us, saying ‘don’t you want to keep your jobs?’ There are a lot of my coworkers that want to join the union, but they feel threatened.”  

In June 2024, the first court hearing was held in a lawsuit filed against Instar and Windmill Farms by Windmill Farms workers and the UFW. The hearing and accompanying rally held by Windmill Farms workers were covered in multiple media outlets, including local channel KIMA. At the hearing, Instar and Windmill Farms argued that workers did not have the right to sue the company because they had signed mandatory arbitration agreements and that the UFW didn’t have standing. Workers previously reported that when Instar bought the farm, workers were fired and then offered jobs only if they signed mandatory arbitration agreements. The judge ruled against the workers, stating that they had to use the arbitration process, but allowed the UFW claims to continue in court.

In a July 2024 webinar hosted by the National Farmworker Ministry Northwest, faith-based organizations heard from farmworkers about some of the ongoing labor abuses that continue at the farm. The webinar included a report about a work stoppage that occurred that week and a former supervisor reported that she was fired in June 2024 because she refused to yell at workers. Attendees were provided additional details about harassment, discrimination, and pressure being placed on workers at the farm.

A July 16 Yakima Herald Republic article covered the work stoppage referenced, noting that, “after recent firings. Approximately 50 people, including 36 current employees, protested outside of the [Windmill Farms] office.”

Recently, a growing number of organizations have written letters encouraging engagement from Instar, including: 11 Washington State Legislators, Unite Here Local 8, Earth Justice, Renton Education Association, Private Equity Stakeholder Project, Stand.Earth, National Farmworker Ministry Northwest, Illinois State Senator David Koehler (wrote to Instar investors), all of whom have been ignored by Instar. The United Food and Commercial Workers Canada also wrote a letter of solidarity to UFW President Teresa Romero regarding the plight of the Windmill workers.

On August 1, 2024, the Yakima Herald Republic covered a gathering that workers organized in Sunnyside, WA, where current and former workers of Windmill Farms shared their concerns, frustrations and emotions with a panel of elected officials, political candidates, and nonprofit staff.

To the extent that Instar and Windmill representatives have told investors that the issues on the farms have been resolved, it appears all the more important that investors find additional sources of information to ensure they can fulfill their fiduciary duty and assess risks to their investments.