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Mueller resigns as Darigold president and CEO as lockout continues

By Kristina Shevory
Seattle Times Eastside business reporter

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John Mueller's resignation is effective March 31, the end of WestFarm Foods' fiscal year. Joel Van Etta, spokesman for the dairy cooperative, said the resignation was not connected to the labor dispute in which 200 Teamsters have been locked out since August. The company would not say why Mueller was leaving.

Teamsters cheered the resignation.

"We haven't popped the champagne, but it's definitely on ice," said Mark Jones, executive officer of Teamsters Local 66. "We feel more confident because we've been fighting this guy for six months. Without him at the negotiations, we anticipate making better progress."

Seattle-based WestFarm Foods and Local 66 negotiators are scheduled to meet tomorrow with a federal mediator. The two sides last met Jan. 15.

The contract expired in July for Seattle and Issaquah dairy workers who process Darigold milk products. Teamsters rejected a proposed contract in August, and West Farm Foods, a co-op of 716 dairy farmers, locked out about 200 Teamsters and brought in replacement workers at its Seattle and Issaquah plants.

Wages, health issues and the company's decision to farm out work to other companies have been the sticking points in the talks.

A judge issued two temporary restraining orders — one Nov. 12 and one last week — to limit picketing activities at the milk-processing plants in Seattle and Issaquah and at corporate headquarters in Seattle.

Mueller joined WestFarm as CEO in 1998. Since he took over, WestFarm has handled 40 percent more milk, moved Darigold cottage cheese and butter to among the top 10 dairy brands in the country and brought new employees to the executive team.

"He very quickly learned the complexities of the dairy industry and developed a strategy to improve the economic return to our producer-owners," said Northwest Dairy Association Chairman Rod DeJong. "He accomplished this by focusing the company on being more competitive."

If a replacement is not found by March 31, John Underwood, senior vice president of the ingredients division, will become interim chief executive. Underwood was previously senior vice president of operations and responsible for WestFarm's 11 processing plants.

WestFarm employs 1,300 at 11 processing plants and distribution centers in the West. It expects about $1.5 billion in sales this year.

Kristina Shevory: 206-464-2039 or kshevory@seattletimes.com

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