Perdue Farms, not unlike many of its peer companies, utilizes outside companies on contract for cleaning and sanitation services at its poultry plants.
And when one of those contracting companies hired underage workers to work in one Perdue facility, Perdue Farms CEO Kevin McAdams said the company gave the idea of employing staff members to perform such sanitation tasks.
But for now, Perdue is still working with contractors, with the exception of the company that hired minors and as a result, broke the law and found itself in hot water with the U.S. Department of Labor (DOL). But McAdams stressed that the company keeps a close eye on and communicates regularly with the companies with which it works.
“In early September I became aware of a situation that occurred in our Accomac, Virginia, plant,” McAdams said during the recent Wall Street Journal Global Food Forum. “That was a surprise to us.”
At the time, Perdue contracted companywide with three companies: Fayette Industrial, Packers Sanitation Services Inc. (PSSI), and Quality Services and Supplies (QSR). Fayette was the company that staffed the Accomac plant.
McAdams said after Perdue discovered minors had been hired, the Perdue leadership team met with the CEOs of all three companies, “and after those reviews, we terminated that agreement with Fayette.”
The DOL alleged that Fayette hired as many as 15 underage workers to perform work at the Perdue Accomac plant, and another nine to work at a Seaboard-Triumph plant in Sioux City, Iowa.
Is it wise to contract sanitation labor?
McAdams was asked during the forum if Perdue has considered bringing the sanitation services in-house. He said the company has, and continues to do so. But as for now, it makes the most sense to use companies that specialize in such duties.
One of the biggest reasons to keep working with contractors, albeit the right ones, is that “the chemistry and science” of cleaning poultry plants is both “difficult” and “ever-changing,” and that QSR and PSSI are up-to-date on those industry trends.
But at the same time, Perdue continues to communicate with the leaders of the cleaning contractors.
“I can look you square in the eyes and tell you that our legal teams and HR teams have protocols in place. There is no place for child labor. This is not something we in any way, shape or form believe in at Perdue, and we do not believe that we have a problem,” McAdams said. “We have quarterly top-to-top meetings, and our HR teams work with those companies to continuously audit all the paperwork.”
Also at the forum, McAdams spoke about a proposed rule that could change the way contract poultry growers are compensated. Other forum speakers included Denny’s CEO Kelli Valade and McDonald’s USA President Joe Erlinger.
