Tyson Foods shareholders vote against proposal for human rights due diligence report
A “clear majority” of shareholders of Tyson Foods, the U.S. meatpacking giant, voted on Feb 11 against a proposal for the company to prepare a report on its human rights due diligence process.
The proposal was filed on behalf of shareholders the American Baptist Home Mission Society and 22 co-filers that included Christian religious organisations and BMO Asset Management.
It especially addressed COVID-19 pandemic-related issues, stating “weak worker health and safety protections, along with fear of retaliation for speaking up about health and safety issues”. The document cited 12,275 Tyson workers contracted COVID-19 and 39 have died. “Tyson has failed to provide evidence that its codes and procedures are effectively implemented,” it added.
The board of directors of Tyson Foods, the company which as of last week owned 49% of a Malaysian halal poultry business, said in a document that the company has put in place “significant protections” at all its facilities that either meet or exceed national requirements. It said that its present policies and practices “appropriately and adequately” address the concerns raised in the proposal.
“Additionally, the Board believes that a separate human rights report is not an effective way for the Company to “assess, identify, prevent and mitigate actual and potential human rights impacts,” Tyson Foods’ board of directors wrote.
Operating income exceeded $1 billion to reach $1.025 billion, up from $826 million year-on-year. The company attributes this to higher earnings in its prepared foods, beef, and chicken segments.
Tyson Foods estimates approximately $440 million of direct incremental expenses associated with the impact of COVID-19.
In an earnings call, CEO Dean Banks said international markets are where the company sees “the majority of protein demand growth coming from going forward”.
“The acquisitions that we’ve made internationally are really helping us both in further processing products that’s exported from the U.S. but also in really taking advantage of synergies related to different skillsets, functions, innovation that we’ve established globally,” said Banks.
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