Group Says That Poor Labor Conditions Related to Meat Inflation

According to a report done by the FAIRR Initiative, due to poor labor practices, meat companies do not have adequate workers to staff their slaughterhouses, which causes an increase in prices and supply shortages.

The FAIRR Initiative is comprised of investors that have a combined asset worth about $70 trillion.

Since the beginning of the pandemic, the meat industry has been under pressure, with crowded processing plants becoming outbreak points for Covid-19, causing workers to catch the virus and several to die.

While prices of meat in the United States and internationally have increased in light of limited supplies and have surpassed other food products affected by inflation. The meat industry has been experiencing challenges with hiring more workers with the increased labor market competition.

“Evidence shows that shortages are becoming more prevalent and are linked to poor working conditions,’’  mentioned the FAIRR report. “This is a major risk, which is impacting production and profits.”

The report also shows that the two largest US producers, Tyson Foods Inc., and JBS USA have been disclosing information to their investors regarding sick pay while other companies refuse to do so, such as Smithfield Foods Inc which is under the WH Group.

“The industry is not attractive to workers currently—people don’t want to work there,” mentioned Siân Jones, an analyst at FAIRR.

In a report released by the Centers for Disease Control and Prevention, there were at least 91 people who died from Covid-19 while working at a meat processing plant from April to May of 2020.

Source: Business Mirror