SPRINGFIELD, ARK. – In a recent SEC filing, shareholders of Tyson Foods Inc. requested that the board of directors commission an independent third-party audit regarding the company’s policies on preventing illegal child labor throughout its value chain.
The proposal asked for the report to be made available on Tyson’s website and omit proprietary information and pending litigation.
Proponents listed the following recommendations that should be included in the audit:
- Evaluation of Tyson policies and practices regarding, but not limited to, slaughter and processing facilities, third-party contractors, suppliers linked to child labor violations.
- Meaningful consultation with workers, suppliers, and other relevant stakeholders to inform appropriate solutions and ensure compliance with federal child labor requirements.
- Recommendations for actions and regular reporting with progress on identified actions.
The proposal mentioned the US Department of Labor investigation from March 2023, which found child labor at Tyson’s Arkansas and Tennessee plants employed by Packers Sanitation Services Inc. (PSSI).
The investigation noted that seven children were found working in the facilities on night shifts using chemicals to clean meat processing equipment such as back saws and head splitters.
PSSI was eventually fined $105,966 in penalties, the maximum under federal law.
“Despite Tyson’s no tolerance policy for the use of illegal child labor, the company does not disclose information on how its commitment is implemented,” the proposal stated.
Audit advocates noted that 10 states, a majority of which have Tyson facilities, introduced bills in the last two years to roll back child labor protections, including Arkansas, where Tyson is headquartered.
Tyson’s board of directors rejected the shareholder proposal and issued a statement regarding the meat producers’ existing policies, practices, and initiatives in this sector.
“The requested independent third-party audit assessing the effectiveness of the company’s policies and practices in preventing illegal child labor throughout its value chain is unnecessary and duplicative because the company already strengthened its policies and practices in this area, which include a robust system of checks and audits following the allegations against PSSI and other sanitation providers,” the board said.
Tyson’s board specified its standards in the company’s Supplier Code of Conduct, which includes:
- Verify the eligibility of their employees
- Prohibit inappropriate recruiting practices and fees
- Ensure no forced labor or child labor is being used or human trafficking is occurring
- Respect the right of employees to freely associate, organize and bargain collectively
- Ensure compliance with applicable wage and hour laws
- Prohibit discrimination, harassment and workplace violence
- Provide options for employees to report concerns without fear of retaliation
The board also noted that Tyson employees currently perform sanitation processes at approximately 38% of its facilities, and the company continues to work to “significantly increase” investment in this capability moving forward.
