Ostrom Mushroom Farms will pay $3.4 million to workers to settle a lawsuit alleging gender discrimination and other violations, the state attorney general said.
The attorney general's office filed the lawsuit in Yakima County Superior Court in August, alleging Ostrom discriminated against women and domestic workers, deceived workers when it came to job requirements and retaliated against workers who spoke up.
More than 170 farmworkers who worked at the Sunnyside mushroom farm could be eligible for compensation, Attorney General Bob Ferguson said at a news conference Wednesday in Seattle. He urged workers to contact his office to see if they qualify.
"Ostrom's systematic discrimination was calculated to force out female and Washington-based employees," Ferguson said in a news release. "I want to thank the workers who spoke out against this discrimination in the face of so much danger and stood up for their rights."
Ostrom denies the allegations and did not admit guilt in the settlement agreement. Ostrom told the state it would wind up its business in February after selling the mushroom farm in Sunnyside, according to court documents. Asellus-Sunnyside is the company that owns Ostrom.
Ostrom's mushroom farm helped bring economic activity to the Sunnyside area, the company noted in a statement, but made no mention of the settlement or lawsuit.
"Ostrom's investment in state-of-the-art facilities and in a dedicated local workforce over the past four years helped solidify the production of high-quality mushrooms as a valuable economic driver in this region," the statement said. "The facility is well positioned for continuing success and growth."
Ferguson said Ostrom's willingness to pay $3.4 million to workers was a statement in and of itself.
"It's clear that Ostrom engaged in systemic and baseless discrimination," he said.
In February, Ostrom sold the mushroom farm on Midvale Road to Windmill Farms, a Canadian mushroom grower. Part of the agreement requires Windmill Farms to protect workers from misconduct, discrimination and retaliation.
Windmill Farms has previously said it is committed to providing a safe workplace for employees that is free from any form of discrimination.
Lawsuit
The attorney general's office said Ostrom began forcing out local, female workers and hiring foreign workers using the H-2A program in April 2021, the release said. The H-2A program allows U.S. employers to hire foreign workers for seasonal agricultural work.
Prior to April 2021 at Ostrom, 117 workers were from the local community and 87% of workers were women, the release said. In April 2022, 50 workers were from Washington and 65 H-2A workers were employed by Ostrom. Three percent of those H-2A workers were women and the female workforce had been reduced 60%, the release said.
One former worker at the news conference said her firing had an emotional impact.
"That affected me emotionally, I was crying and very sad," said Javita Bustamante.
Ferguson thanked workers for speaking to his office during the investigation.
"It's particularly challenging for workers in this environment to speak up. That's why we're so grateful," he said.
Isela Cabrera, who worked at Ostrom and Windmill Farms, thanked the attorney general's office for the $3.4 million settlement. She urged farmworkers to fight for their rights. Farmworkers are campaigning for a union contract with Windmill Farms.
"Know your rights and defend yourselves as essential workers," Cabrera said in Spanish.
Though Ostrom ceased operating, the court order will require Ostrom to adopt the same policies if it resumes operations in Washington state during the next three years, the release said.
People who worked at Ostrom in the last several years may be eligible for a portion of the $3.4 million compensation. Immigration status will not be considered in eligibility. Former or current workers can email the Office of the Attorney General at ostrom@atg.wa.gov or call 1-833-660-4877 and dial five to find out if they qualify.
Windmill Farms agreement
Windmill Farms was not a defendant in the lawsuit and won't pay into the settlement, but it signed a separate agreement that committed the company to following state law and implementing a non-discrimination policy.
"The AG (attorney general) recognized that we are unaffiliated with Ostrom and that the agreement was entered into voluntarily demonstrating our commitment to the values that are most important to all of us; a work place free of discrimination, harassment and retaliation," Windmill CEO Clay Taylor said in an email. "These values are introduced to our employees at hiring and are reinforced with our commitment to the AG."
The non-discrimination policy will be shared with all workers, managers and supervisors at Windmill Farms and govern the complaint process and investigations to protect workers. It will be reviewed by the attorney general's office.
Cabrera, who still works at Windmill Farms, said she hopes the company takes note of the agreement and does not repeat Ostrom's actions.
"I want to see that there is no discrimination, that there's no preferential treatment, for all my coworkers," Cabrera said in Spanish.
Taylor said Windmill Farms has complied with state, local and federal laws and is committed to providing a safe and healthy workplace. He said the agreement with the attorney general was voluntary and Windmill has worked to create a discrimination-free workplace.
Cabrera said workers, who voted to organize with the United Farm Workers in 2022, will continue in their efforts to unionize to protect their rights and improve insurance and vacation opportunities. She added that the settlement with Ostrom was an encouraging step toward better protecting workers' rights.
"I only want to say that this doesn't stop here," Cabrera said in Spanish. "On the contrary, I'm working with the same strength to get a union contract."
Neither Ostrom nor Windmill Farms has recognized the union, nor are they required to under federal law.
