CHICAGO ‒ JBS USA Food Co. and the US Department of Labor (DOL) reached an agreement on Jan. 13 that the company would put $4 million toward individuals and communities affected by unlawful child labor practices across the United States.
The agreement also includes a commitment by JBS to hold key elements of its supply chain, service providers and third-party contractors accountable for child labor.
“With this agreement, JBS USA Food Co. is taking significant steps to ensure children are not put in harm’s way at its facilities or by its contractors,” said Seema Nanda, US solicitor of labor.
The agreement is meant to help victims of child labor nationwide. Still, the DOL said to prioritize efforts in the communities of Guntersville, Ala., Greeley, Colo., Ottumwa, Iowa, Worthington, Minn., and Grand Island, Neb.
JBS provided a statement to MEAT+POULTRY following the DOL announcement.
“JBS entered into this agreement in partnership with the DOL to serve as an industry leader, showcase the innovative actions the company has taken, encourage other entities to follow suit, and set the standard for third-party contractors’ compliance with labor and employment laws,” a JBS spokesperson said. “JBS admits no liability as part of this agreement."
Many funds will help organizations with scholarships, stipends and educational aid to community organizations to help fund English as a Second Language teaching positions, literacy, job training and housing. Community outreach on this topic was also something emphasized by the DOL.
Along with the monetary agreement, JBS will also be required to host or sponsor a symposium focusing on preventing illegal child labor for industry leaders and non-profits. It also must hire a child labor compliance specialist to review policies and conduct unannounced audits.
Next, JBS needs to maintain a toll-free ethics hotline for anonymous reports of concerns about compliance. The company must also use a zero-tolerance policy in any contract agreements with third-party sanitation firms or poultry-catching services.
DOL must also be notified when contracts are terminated because of child labor violations, and nationwide training on preventing illegal child labor must be required for all third-party sanitation employers at JBS facilities and all JBS employees at meat packing establishments.
“We voluntarily took all sanitation services in-house and no longer work with third-party sanitation service providers,” the JBS spokesperson added. “This effort helps to ensure best-in-class processes and services for the cleaning of our facilities that meet our high standards from a safety, hiring and compliance standpoint. We believe the fund outlined in the agreement will provide valuable resources and assistance to support youth who need it, which is in alignment with our zero-tolerance policy for child labor.
JBS Sanitation was created in May 2023 after allegations against JBS’s previous sanitation service provider, Packers Sanitation Services Inc. (PSSI).
At the time of the allegations, PSSI serviced around 700 food processing facilities nationwide. An investigation conducted by the DOL found that PSSI employed over 30 workers from ages 13 to 17 in hazardous work conditions.
Since the allegations, JBS has terminated its contracts with PSSI. Locations that were formerly serviced through PSSI include Grand Island, Neb., Worthington, Minn., and Greeley, Colo.
Details from the DOL stated that JBS employs more than 37,000 people at nine US facilities. Its products are sold under dozens of brand names, including Pilgrim’s, Primo and Swift in the United States.