JBS, the world's largest beef producer, has agreed to pay $4 million to child labor victims and organizations working to combat the practice, the Labor Department said Monday.
In an agreement with the department, the company said it would provide scholarships, stipends and educational aid. Funding can also go to community organizations for employing teachers or providing literacy, job training and housing assistance, according to a press release.
In addition, the agreement requires JBS to host a symposium focused on preventing illegal child labor, hire a child labor compliance specialist, operate a toll-free hotline where compliance concerns can be submitted anonymously, and create child labor awareness advertising campaigns in Alabama, Colorado, Iowa, Minnesota and Nebraska.
JBS also agreed to add a zero-tolerance policy to contract agreements with third-party sanitation firms and require these firms to undergo child labor prevention training before working in JBS facilities. Under the agreement, the company must notify the Labor Department when contracts have been terminated because of child labor violations.
“Under this agreement, JBS USA Food Co. has adopted creative and forward-thinking compliance measures to combat illegal child labor,” Labor Department Wage and Hour Administrator Jessica Looman said in the release. “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 entered into the agreement to "serve as an industry leader, showcase the innovative actions the company has taken, encourage other entities to follow suit, and set the standard for third-party contractors’ compliance with labor and employment laws," company spokesperson Nikki Richardson told Agri-Pulse in a statement.
JBS admitted no liability as part of the agreement, Richardson said.
"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 labor," Richardson said in the statement.
The agreement follows a Labor Department investigation that found at least 102 children illegally employed by Packers Sanitation Services Inc. cleaning back saws, brisket saws and head splitters and using hazardous chemicals inside of 13 meat processing facilities, including three owned by JBS. PSSI, a third-party contractor that specializes in cleaning packing plants, paid $1.5 million in civil money penalties in 2023 and agreed to ensure its future operations complied with federal child labor laws.
JBS terminated contracts with PSSI following the investigation and started its own in-house sanitation operation. Richardson said JBS no longer works with third-party providers, which "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."
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This story was updated to include a statement from a JBS spokesperson.
