RESOLVED: Shareholders request the Board of Directors prepare a report, at reasonable cost and omitting proprietary information, on Pilgrim’s Pride’s human rights due diligence (HRDD) process to assess, identify, prevent and mitigate actual and potential adverse human rights impacts.

Supporting Statement: We recommend the report:

• Include the human rights principles used to frame its risk assessments;
• Outline the human rights impacts of Pilgrim’s Pride’s business activities, including company-owned operations, contract growers, and supply chain, and plans to mitigate adverse impacts;
• Explain the types and extent of stakeholder consultation; and
• Address Pilgrim’s Pride’s plans to track effectiveness of measures to assess, prevent, mitigate, and remedy adverse human rights impacts.

Companies that fail to address human rights concerns risk backlash from communities, customers, and regulators, which poses significant harm to long-term shareholder value. Industrial meat production exposes workers, farmers, and communities to actual and potential adverse human rights impacts. Poultry processing workers, including at Pilgrim’s Pride, have routinely faced serious labor rights violations, including injuries from unsafe line speeds and other hazards, exposure to toxins, wage and hour violations, sexual harassment, and workplace discrimination.1 In addition to risks faced by workers, surrounding communities are also impacted by processing plants’ interference with their right to clean water.2

The COVID-19 pandemic has severely aggravated these dangers,3 with the poultry industry being infection hotspots in multiple states.4 Workers at Pilgrim’s Pride have complained about insufficient protections, working in spite of fevers and presenting COVID-19 symptoms, and lacking information about exposure to infected individuals, which has led to publicized protests, including one with an employee holding a ‘Workers Are Not Slaves’ sign.5 Workers also relayed that Pilgrim’s Pride failed to provide adequate protection equipment, and are asked to “re-use them day after day.”6 Investigators found that multiple Pilgrim’s Pride workers have become infected and some have died from COVID-19.7

Increased public scrutiny on these harmful production practices generates significant financial risk. The poultry processing industry is plagued by legal complaints, fines8, and investigations9 revealing patterns of workplace violations. Pilgrim’s Pride and its subsidiaries have accumulated numerous fines, totaling $34.7M in penalties together with corporate parent JBS.10 Though Pilgrim’s Pride commits to “not permit degrading conditions in the workplace that could put our team members’ health or lives at risk”11 repeated investigations, fines, and lawsuits indicates that meaningful steps need be taken to ensure that the company upholds this promise.

The UN Guiding Principles on Business and Human Rights12 affirm that corporations have a responsibility to respect human rights within company-owned operations and throughout their supply chain. To meet this responsibility, companies are expected to conduct HRDD, informed by the core international human rights instruments, to assess, identify, prevent, and mitigate adverse human rights impacts.13 To protect its long-term financial interest, Pilgrim’s Pride should do just that.

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1 https://www.oxfamamerica.org/static/media/files/Lives_on_the_Line_Full_Report_Final.pdf
https://www.hrw.org/report/2019/09/04/when-were-dead-and-buried-our-bones-will-keep-hurting/workers-rights-under-threat
2 https://prairierivers.org/wp-content/uploads/2018/10/Slaughterhouse-report-10.11.18.pdf
https://feedingourselvesthirsty.ceres.org/company-scorecards/pilgrims-pride
3 https://www.oxfamamerica.org/explore/research-publications/disposable/
4 https://investigatemidwest.org/2020/04/16/tracking-covid-19s-impact-on-meatpacking-workers-and-industry/
https://thefern.org/2020/04/mapping-covid-19-in-meat-and-food-processing-plants/
5 https://qz.com/africa/1871345/somalis-took-on-a-minnesota-meatpacking-plant-to-stop-covid-19/
6 https://www.wctv.tv/2020/07/07/employees-claim-covid-outbreak-at-pilgrims-pride/
7 https://thefern.org/2020/04/mapping-covid-19-in-meat-and-food-processing-plants/; https://www.newsobserver.com/news/coronavirus/article242898471.html; https://www.denverpost.com/2020/09/16/workers-protest-covid-fine-jbs-greeley/; https://www.nwaonline.com/news/2020/aug/05/meat-firms-fight-worker-death-claims/.
8 https://www.ehstoday.com/safety/article/21918131/pilgrims-pride-adds-to-flock-of-osha-violations
9 https://www.nelp.org/news-releases/gao-report-finds-injured-meat-poultry-workers-denied-medical-care-at-worksite/; See also https://www.al.com/news/2020/01/congresswoman-urges-investigation-after-death-of-pilgrims-pride-worker.html (detailing threats of investigations).
10 https://violationtracker.goodjobsfirst.org/parent/jbs
11 https://sustainability.pilgrims.com/chapters/team-members/
12 https://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf
13 https://www.ohchr.org/en/professionalinterest/pages/