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“Crisis In Processing” – Pandemic Exposes Fragility Of Food Supply Chain
“Crisis In Processing” – Pandemic Exposes Fragility Of Food Supply Chain
Today’s food supply chain crisis began in the meat industry has been developing for decades, and Tyson Foods has helped to create the disaster that is currently unfolding.
The problem is consolidation, and with Tyson, JBS SA and Cargill Inc, three mega-corporations that control 66% of America’s beef, as much of it is processed in just a few dozen meatpacking facilities across the US. Only a few companies also dominate pork and Chicken.
There have been at least 12 closures of meatpacking plants in April because of virus-related issues among employees. This has resulted in at least 25% of pork and 10% of beef processing capacity coming offline in the last several weeks, reported Bloomberg.
“This is 100% a symptom of consolidation,” said Christopher Leonard, author of “The Meat Racket,” which examines the protein industry. “We don’t have a crisis of supply right now. We have a crisis in processing. And the virus is exposing the profound fragility that comes with this kind of consolidation.”
On Sunday, Tyson Foods warned in a full-page ad in the New York Times that the “food supply chain is breaking.”
“As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain,” wrote Tyson Chairman John Tyson, patriarch of the company’s founding family, in a Tyson Foods website post that also ran as a full-page ad in several newspapers. “The food supply chain is breaking.”
Then on Tuesday, President Trump signed an order for meatpacking facilities to remain open during the pandemic. With plants being forced to stay open as the fast-spreading virus infects workers, that doesn’t necessarily mean workers will show up to work. We discussed that over the weekend in a piece titled “American Farms Cull Millions Of Chickens Amid Virus-Related Staff Shortages At Processing Plants.”
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Tyson Foods Offers Workers $1000 Bonus To Return To Corona-Factories
Tyson Foods Offers Workers $1000 Bonus To Return To Corona-Factories
Tyson Foods is set to double bonuses, increase wages, and better protect employees amid one of the worst health crises to strike the nation’s meatpacking plants.
Several Tyson plants have now been shuttered due to COVID-19 outbreaks. The company is now offering “$120 million in “thank you bonuses” for 116,000 US frontline workers and truckers, up from the $60 million announced in early April. The company is moving up the first $500 bonus payment to early May.” The company said another tranche of payments could arrive as soon as June, totaling $1,000.
The release also states that it will increase short-term disability coverage to 90% of average pay until June 30 for employees who are not able to work because of sickness.
Tyson said it was improving social distancing within in plants along with keeping better track of its employee’s health:
- Screen workers for additional symptoms, such as coughing and shortness of breath
- Have designated monitors at each facility to help enforce social distancing
- Require the use of company-provided surgical-style face coverings
“This pandemic is ever-evolving, and the decision to make these changes reflects our desire to continuously explore new ways of supporting our team members through this crisis,” said Mary Oleksiuk, executive vice president and chief human resources officer for Tyson Foods.
“The safety and well-being of our people is our top priority as we work together to fulfill our critical role of feeding people across the country.”
Tyson has already waived the waiting period to qualify for short-term disability so employees can get paid quicker while on sick leave.
The release notes that Tyson has formed an in-house “coronavirus task force” that has implemented numerous measures at facilities to protect workers. Some of those efforts include:
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