Poultry group Perdue Farms has reached an agreement with the US government to support projects aimed at combatting child labour.
The $4m indirect settlement with the Department of Labor (DoL) follows an investigation by the US government office into the alleged employment of underage workers by a third-party contractor at Perdue Farms factory in Accomac, Virginia, between 2020 and 2023.
Go deeper with GlobalData
While Perdue Farms said in a statement that the probe did not identify any cases of child labour at the plant, it has agreed to set up a $2m fund “for the benefit of impacted minors” and also direct another $2m to a local charity dedicated to assisting “unaccompanied migrant children”.
Defending its corner, the company said: “Perdue fully cooperated with the Department of Labor’s investigation and the investigation did not identify any current underage workers at Perdue Farms.
“While we strongly disagreed with DoL’s findings of liability, and there are no admissions in the agreement to the contrary, Perdue recognised that a prolonged dispute with the Department of Labor did nothing to address the child labour crisis.”
Perdue Farms also emphasised its opposition to the use of child labour following a similar agreement with the DoL this week by the US division of Brazilian meat giant JBS.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Any instance of underaged workers in our facilities was without authorisation and is unacceptable,” Perdue Farms said in the statement. “Underage labour has no place in our business and our industry.”
Contrary to Perdue Farms’ assessment, the DoL suggested it had identified the use of child labour at the Accomac plant by a third-party with which the government office has reached a separate agreement.
The Department identified that party as temporary staffing agency Staff Management Solutions and SMX, together known as SMX.
The separate agreement with SMX would “address child labour violations found in an investigation of Perdue’s poultry processing facility in Accomac”, the DoL said in its own statement issued yesterday (15 January).
Detailing its observations, the DoL said: “Investigators with the Department’s Wage and Hour Division found that, as far back as 2020, Perdue Farms contracted with SMX to staff production-level jobs, and that they jointly employed children in hazardous occupations at the Accomac facility to debone and process chicken and other products using equipment such as electric knives and a heat-sealing press.”
It added: “The employers also permitted children to work after 7pm during a regular school week. These conditions violate the Fair Labor Standards Act’s child labour hazardous orders and hours provisions.”
As well as the $4m settlement, the DoJ said Perdue Farms had also agreed to a pay a $150,000 “civil monetary penalty”.
Jessica Looman, classified as an administrator at the DoJ’s wage and hour department, said in the statement: “Government, industry, workers and advocates must come together to build solutions to the problem of exploitative child labour.
“The department’s work uncovering a systemic disregard for the safety of children resulted in meaningful commitments to stop and prevent child labour exploitation.”
Perdue Farms identified the recipients of its monetary contributions as the Eastern Shore Community College and Kids in Need of Defense (Kind).
Meanwhile, the DoJ said SMX had agreed to pay a civil monetary penalty of $150,000 and to be “permanently enjoined from future FLSA child labour violations in meat processing and packing industries”.
The DoJ’s solicitor of labour, Seema Nanda, added: “Perdue Farms has substantial influence in the poultry processing industry. By entering into this agreement, Perdue Farms is taking meaningful action to root out child labour not only at its facilities but to recognise its corporate responsibility to combat child labour more broadly.”
