Brazilian meat major JBS’s US arm has signed an agreement with the American government to address child labour issues.
JBS will provide $4m to assist individuals and communities “affected by unlawful child labour practices nationwide”, the US Department of Labor (DoL) said.
The US meatpacking industry has been blighted by allegations that underage employees are working in its plants.
Since 2022, the DoL has investigated various third-party contractors that provide sanitation services at meatpacking plants and service providers of poultry catching. These investigations discovered that JBS’s third-party service providers employed children for dangerous roles and overnight shifts at the company’s facilities in Colorado, Iowa, Minnesota and Nebraska.
In April 2023, JBS USA announced it was ending contracts with Packers Sanitation Services Inc (PSSI) after the cleaning firm was fined $1.5m for using child labour.
A DoL investigation found PSSI, which provided sanitation services at JBS USA meat plants, illegally employed more than 100 children.
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By GlobalDataThe new agreement commits JBS – the world’s largest beef and pork processor – to hold key elements of its supply chain, third-party contractors and service providers accountable for illegal child labour. It will also create a targeted advertising campaign to raise awareness about unlawful child labour practices.
DoL wage and hour administrator Jessica Looman said: “Under this agreement, JBS USA Food Co. has adopted creative and forward-thinking compliance measures to combat illegal child labour.
“JBS has taken responsibility for children performing dangerous work at its facilities by proposing concrete and enforceable solutions to address those issues, setting the standard as a market leader in preventing illegal youth employment.”
JBS will prioritise its efforts in five areas: Guntersville, Alabama; Greeley, Colorado; Ottumwa, Iowa; Worthington, Minnesota; and Grand Island, Nebraska.
The funds it provides may provide direct assistance to affected individuals and community organisations in the form of scholarships, stipends and educational aid including assistance to community organisations to fund English as a second language teaching positions, literacy, job training and housing.
Greeley, Colorado-based JBS USA is also required to host or sponsor a symposium focused on preventing illegal child labour for industry leaders, non-profits and other interested parties and hire a child labour compliance specialist to review policies, develop training materials and conduct unannounced audits.
It additionally has to maintain a toll-free ethics hotline for the anonymous reporting of compliance concerns and incorporate a zero-tolerance policy in any contract agreements with third-party sanitation firms or poultry catching service providers.
The company must also notify the DoL when contracts have been terminated because of child labour violations.
JBS’s US leg has nine US facilities, supplying beef products to more than 44 countries on six continents and is the country’s second-largest fresh pork producer with five US facilities, offering pork products to more than 26 countries on five continents.
The company employs more than 37,000 people at these facilities.
In a statement, JBS said it had entered into the agreement to “set the standard for third-party contractors’ compliance with labor and employment laws”.
It added: “JBS admits no liability as part of this agreement. We voluntarily took all sanitation services in-house and no longer work with third-party sanitation service providers. 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 labour.”