ConAgra Foods, Inc. (NYSE: CAG) announced yesterday it has reached a tentative agreement with Teamsters Union Local 890 to resolve labor issues at the former Basic Vegetable garlic and onion processing plant in King City, California.

At the time ConAgra Foods acquired the plant last November, the company recognized the Teamsters union as the bargaining agent. However, the situation was complicated by the fact that the workforce at the time of acquisition was comprised of both replacement employees and former strikers. ``This agreement respects both the seniority rights of the workers who were at the plant when we acquired it and the strikers who will get an opportunity to return to work based upon seniority,'' said Karen Lynn, company spokesperson. ``Severance pay for all replacement employees displaced by more senior employees is assured.''

ConAgra Foods, Inc. is North America's largest foodservice manufacturer and second largest retail food supplier, with annual sales of approximately $27 billion.