Congresswoman Tours National Frozen Foods, Hears of Expenses for Fuel, Health Care

    Several hot national topics of the day seem to be converging on National Frozen Foods, making the processing and packaging of frozen vegetables a more expensive task than in years past.

    “High fuel prices and high energy prices really affect our industry,” said Pat Sauter, general manager of the Chehalis plant. “All that stuff trickles downhill and affects the bottom line.”

    The price of gas is taking a toll on a company that specializes in packaging and shipping out goods.

    “Fifty cents makes a big difference for us,” Sauter said about gas that peaked above $4 and is slowly coming back down. “It seems like there’s a lot of inflation going on, and it’s hard to get that back in the price. ... Every penny matters in our business.”

    However, the expense of health care, particularly new costs looming in the distance of 2014 when the new health care legislation kicks in, might trump increasing energy and fuel prices.

    Congresswoman Jaime Herrera Beutler listened to the issues facing the Seattle-based company as she toured the National Frozen Foods packaging plant in Chehalis Tuesday.

    National Frozen Foods spent about $3.9 million on health care costs company-wide for its employees in 2010, according to Sauter. That figure is guaranteed to increase this year, he added.

    “I think you have to attack this a couple different ways,” Herrera Beutler said. “But your aim has to be to decrease the cost-driving incentives. ... There are reforms we can put in to increase competition and drive down costs.”

    The Camas Republican has advocated for workers and employers to have the ability to purchase insurance across state lines, which she says will make the marketplace more competitive.

    Inflation may not be the only factor increasing health care costs for the company. A portion of the federal health care reform law mandating employers to pay for insurance for seasonal labor could further hamper the company’s profit margin, officials said. Herrera Beutler said the Chehalis site could be responsible for insuring the 350 seasonal workers brought in for four months to help process corn, carrots and other vegetables at the plant or be forced to pay fines beginning in 2014.

    “All we want to do is provide a great workplace and make sure we have benefited jobs. But this could be a game changer,” Sauter said about the upcoming affects of the health care reform legislation. “It’s kinda scary. Our employees ask us about it, but we just don’t know (what will happen).”

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    Marqise Allen: (360) 807-8237, Twitter @marqiseallen