Following the revelations that Packer Sanitation Services employed underage workers to clean equipment and plants in violation of labor laws, the Department of Labor and the Department of Justice civil imposed penalties of $1.5 million on Packer Sanitation Services. As part of the agreement the Company has appointed a Chief Compliance Officer in a newly created position. Diego Alvarez was selected based on experience in overseeing and managing compliance issues in large corporations. Alvarez was most recently Senior Director for International Ethics and Compliance at Walmart Stores Inc.
Tim Mulhere, appointed as CEO after the scandal, commented, “I am confident that his leadership experience and expertise will guide us in our compliance efforts as we move forward into 2024 and beyond.” Alvarez stated “I look forward to working with Tim and the Board to put compliance first and to continue helping PSSI customers as they protect the health and safety of the nation’s food supply.”
Closely monitored by the Department of Labor, the Company now has an absolute prohibition against employment of anyone under the age of 18 and zero tolerance for any violation of company policy.
The question arises why packers and processors have undertaken to use a single contractor to provide a critical component of plant operations and indirectly, product quality. Cleaning equipment and plants should be integral to packing and processing. Subsequent to the violations disclosed mid-year, one of the Big Four packers has elected to undertake plant cleaning and decontamination using company crews in its hog, beef and poultry facilities.
Following revelations in media that migrant minors were employed illegally in plants owned by Perdue Farms and Tyson Foods in the state of Virginia, the Department of Labor, Wage and Hour Division initiated an investigation into major integrators in the region. Packers and processors that employed Packer Sanitation Services have apparently escaped Department of Labor sanctions for the previous Midwest violations of labor laws by their contractor. Unfortunately, all implicated companies have experienced a measure of degradation of image and reputation. This is evidenced by the subsequent involvement of Senator Josh Hawley (R-MO) in his letter to Tyson Foods demanding information on employment of underage workers.
A spokesperson for Perdue Farms commented, “We take the legal employment and safety of each individual working in our facilities very seriously and have strict, long-standing policies in place for Perdue Associates to prevent minors from working hazardous jobs in violation of the law.” The spokesperson added, “We hold our suppliers to the same high standards, and we were appalled by recent allegations.” Perdue has appointed third-party auditors to review the employment of minors and will take action based on the findings.
Secretary of Agriculture, Tom Vilsack, addressed a circular letter to the meat and poultry industry after the initial complaints in Minnesota warning of the need to eliminate illegal child labor in the food supply chain.