by Marion Nestle

Currently browsing posts about: Labor

Dec 15 2022

PepsiCo’s massive employee layoffs: some thoughts

TODAY on Zoom: 11:00 a.m.  Register here.

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I’m always fascinated by the food industry’s rationale for massive layoffs.

PepsiCo, for example.

It is planning to lay off hundreds of workers (see Washington Post announcement, and Food Navigator discussion).

The Wall Street Journal report’s Pepsi’s rationale:
PepsiCo
 Inc. PEP -0.37% is laying off workers at the headquarters of its North American snacks and beverages divisions, a signal that corporate belt-tightening is extending beyond tech and media, according to people familiar with the matter and documents reviewed by The Wall Street Journal…In a memo sent to staff that was viewed by the Journal, PepsiCo told employees that the layoffs were intended “to simplify the organization so we can operate more efficiently.”

PepsiCo reported a 12% increase in revenues last year.

Its global revenues came close to $80 billion in 2021.

PepsiCo Beverages North America’s operating profit has recently decreased by 10%,

primarily reflecting certain operating cost increases, including incremental transportation costs, a 37-percentage-point impact of higher commodity costs and higher advertising and marketing expenses. These impacts were partially offset by net revenue growth and productivity savings.

It paid its CEO $25,506,607 in 2021.  This is 500 times more than the median employee salary of $52,000.

That’s how the system works.

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Nov 9 2022

It’s time to make minimum wage laws apply to ALL workers (no, they don’t at present)

Here’s a report worth reading:

For reasons of history—and, alas, racism—laws requiring minimum wages do not apply to restaurant workers, farm workers, and home employment workers, all mostly people of color.

This report focuses on restaurant workers who depend on tips:

Unique among pay inequities, the subminimum wage for tipped workers was an original pay gap created intentionally to deny Black women any wage at all, forcing them to live on tips. This original and intentional pay inequity has been compounded over the last 160 years since Emancipation by ongoing inequities in hiring by employers and tipping and harassment by customers — resulting in an unlivable situation for Black women. The fact that Black women persist in the restaurant industry is a testament to many of these workers’ pride in their work as hospitality professionals who deserve to be remunerated as such.

The report offers three key findings:

  • Black women in the industry continue to earn less than white men.
  • Black women are more likely to not earn enough tips to bring them to the minimum wage, and more likely to experience customer harassment.
  • Black women are leaving the industry, but are more resilient than others.

It presents data arguing for having minimum wage laws apply to all workers.  Seven states have passed such laws; the rest need to.

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Aug 12 2022

Weekend reading: why immigrants are essential to the meat and dairy industries

The Immigrant Council has issued this report.  It’s a useful introduction to the role of immigrants in animal agriculture and issues related to the entire system.

The Key Findings:

  • Even before the pandemic, the meat and dairy industries struggled to hire enough workers: The current national labor shortage has worsened the problem, and it’s causing meat and dairy prices to rise between 4.5 and 7.0 percent.
  • These price increases are due in part to higher wages employers must offer to attract workers: From 2019 to 2022, the median wage for meat and dairy industry workers* increased 33.7 percent. from $14.95 to $20.00 per hour. This far outpaces U.S. median wage which increased from $20.11 to $21.51 per hour, or 7.4 percent during the same period.
  • Transportation plays a vital role in the production and pricing of meat and dairy products: Since the start of the pandemic, advertised wages for meat and dairy truck drivers have increased nearly 40 percent due to high demand3. Already, one in four of the industries’ truck drivers are immigrants.
  • Foreign-born workers are essential to America’s food supply: As many workers —both U.S.- and foreign-born —reach retirement age and leave the workforce, the meat and dairy industries will be increasingly hard-pressed to find enough workers. While meat and dairy employers rely on the H-2A and H-2B visa programs to fill jobs with temporary foreign workers, these visa programs are seasonal and do not meet the needs of what are non-seasonal industries.

The report is full of nicely illustrated facts and figures.

Lots of interesting material here.  It’s worth a look.

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Dec 17 2021

Weekend reading: low-wage labor in the grocery industry

Benjamin Lorr.  The Secret Life of Groceries: the Dark Miracle of the American supermarket.  Avery/Penguin Random House, 2020.

I don’t know how I missed this one when it came out in mid-2020, but I did.*

I saw a reference to it and thought I ought to take a look, largely because I am gearing up to update my book, What to Eat, in a second edition for Picador/Farrar Straus Giroux.

My book, which first appeared in 2006, is about food issues, using supermarkets as an organizing device.

Lorr’s book, which I expected to be a superficial expose of supermarkets, is anything but.

It is a deep, detailed, personal, and utterly powerful indictment of the human rights violations perpetrated on workers in grocery supply chains: truckers, grocery store clerks, Thai workers on shrimp-catching boats.

The personal comes in because Lorr is an experiential immersion journalist.  He embedded himself with a trucker, the fish section of a Whole Foods market, and a Thai fishing boat, as well as spending several years doing interviews.  Using the personal stories, he has plenty to say about truly shameless exploitation of low-wage workers in order to keep food costs low.

If you want to understand what low-wage work—or the Great Resignation—is about, here’s an excellent place to start.

This is an important book about food labor issues, but also about how more general systems of exploitation are maintained.

The “more general” leads me to pick one bone with Lorr’s analysis.

For those of us, he says:

Who want to shake the world aware to the fact that we are literally sustaining ourselves on misery, who want to reform, I very much don’t want to dissuade you so much as I want you to consider that any solution with come from outside our food system, so far outside it that thinking about food is only a distraction from the real work to be done.

His book, I’d say, proves just the opposite.  Food is his entry point into this topic and would not be there without it.

*I shouldn’t have missed it.  It was reviewed in the New York Times.  And Charles Platkin, whose work I follow closely, interviewed Lorr when the book first came out.

Nov 2 2021

Congressional staff report: Covid 3X harder on meatpacking workers

The majority staff of the House Select Subcommittee on the Coronavirus Crisis has issued a scathing report: “Coronavirus Infections and Deaths Among Meatpacking Workers Were Nearly Three Times Higher than Previous Estimates.”

Newly obtained documents from five of the largest meatpacking conglomerates, which represent over 80 percent of the market for beef and over 60 percent of the market for pork in the United States—JBS USA Food Company (JBS), Tyson Foods, Inc. (Tyson), Smithfield Foods (Smithfield), Cargill Meat Solutions Corporation (Cargill), and National Beef Packing Company, LLC (National Beef)—reveal that coronavirus infections and deaths among their meatpacking workers were substantially higher than previously estimated.

The report’s main findings:

  • Certain meatpacking plants saw particularly high rates of coronavirus infections during the first year of the pandemic. For example, 54.1 percent of the workforce at JBS’ Hyrum, Utah plant contracted the coronavirus between March 2020 and February 2021.
  • Across companies, Tyson saw 29,462 employee infections and 151 employee deaths, and JBS saw 12,859 employee infections and 62 employee deaths.
  • Coronavirus Outbreaks in Meatpacking Plants Disproportionately Impacted Minority Workers
  • The full extent of coronavirus infections and deaths at these meatpacking companies was likely much worse than these figures suggest.
  • OSHA made a political decision not to issue regulatory standards that might require meatpacking companies to take actions to protect workers.

Recall that meatpacking workers were among the first to get sick from Covid-19, causing

The report confirms that Covid-19 in meatpacking workers was and is a national tragedy and scandal, a direct result of corporate consolidation and capture of government.

The report’s recommendations to meatpacking plants, government agencies, and Congress can’t come soon enough.

Oct 22 2021

Weekend reading: labor issues in the food system

Saru Jayaraman has a new book out:

She explains what this is about in an email:

As described in this recent NY Times article, we have been documenting thousands of restaurants raising wages to a median of $13.50 plus tips nationwide in order to recruit staff. As a result, we are so close to passing One Fair Wage – a very hopeful, silver lining to emerge from several challenging years.

In this moment of incredible change, we are hoping to use my new book – One Fair Wage: Ending Subminimum Pay in America (New Press, 2021) – to call for policy that will make the increasing wages nationwide permanent.

Please join us for one of the in-person or virtual events.

The newsletter issued by Hunter College’s Food Policy Center (subscribe to it here) notes recent items about food workers, restaurants, and food labor:

Comment: Now more than ever, labor issues matter.  It helps to stay informed about what’s happening on the food-labor front.

Aug 12 2021

Cocoa and chocolate in the food news

In talking about cocoa and chocolate, it’s a quick move from candy to politics.

New ways to treat yourself on World Chocolate Day July 7: “While we usually think of chocolate as a sweet treat, many cultures and cuisines use chocolate to boost the flavour profiles of their main dishes.”  Suggestions: (1) Mix it into your chilli con carne, (2) Use it as a marinade for meat, (3) Dip your bacon in it, (4) Add it to your Bolognese, (5) Turn it into pasta.  [Comment: I don’t think so].

‘You, the whites, are eating cocoa. You bring the price … you have to give us a chance to sell it at the price that we want’:  ‘I am a cocoa farmer’ is the first in an occasional series by Dr Kristy Leissle, scholar of the cocoa and chocolate industries…Over time, the series will illustrate both the diversity of people who farm cocoa, and the similarities of their circumstances. Read more

Rise in US confectionery sales boosts Fairtrade payments to cocoa farmers: People are paying more attention than ever to the conditions behind the products they buy as a way to make a difference in the world, according to new research findings released by GlobeScan and Fairtrade International…. Read more

Mondelēz and Fairtrade Foundation offer financial support to female cocoa farmersThe new ‘Cadbury Farmer Resilience Fund’ designed to protect cocoa farmer livelihoods during the COVID-19 pandemic is providing grants that will empower thousands of women farmers to start small businesses and earn a decent living…. Read more

Mars Wrigley to meet industry cocoa officials to discuss LID payments:  Barry Parkin, the company’s Chief Procurement and Sustainability Officer, is set to meet with members of the cocoa industry and the governments of Ghana and Cote d’Ivoire this week to discuss the Living Income Differential (LID) and to underscore the company’s commitment to…full payment to farmers and control of supply to prevent cocoa from moving into protected areas. Read more

Can U.S. chocolate companies be liable for child-labor abuses in the global cocoa supply chain?  Chocolate brought Americans sweet respite in 2020—more than usual, according to recent research into pandemic purchasing. But the great irony in our chocolate indulgence is that it’s also a product borne out of great suffering…Within the next few weeks, the U.S. Supreme Court is expected to rule on a pair of consolidated cases known as Nestlé USA, Inc. v. John Doe and Cargill, Inc. v. John Doe. Nestlé is one of the world’s biggest chocolate manufacturers and Cargill, the world’s largest cocoa bean processor.

And here’s the ruling: US Supreme Court rules in favour of cocoa companies Nestle and Cargill in child slavery case:  The US Supreme Court rules that Nestlé USA and Cargill can’t be sued for child slavery on African farms from where they buy their cocoa…. Read more

Comment: The issues in chocolate just won’t go away: unfairly low prices to producers of the raw materials, harsh and unfair working conditions, child labor, and overall power imbalances as displayed in the Supreme Court decision.

Jul 16 2021

Weekend food for thought (a good one!)

I saw this in a tweet from the Politico cartoonist, Matt Wuerker.  It’s too good not to share.