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The "NEED" for Slave Labor

Web Opinion piece ^ | unk. | Tricia Murjada Posted on April 7, 2002 12:58:42 PM CDT by rdavis84

TYSON CORPORATION by Tricia

Murjada The Data Tyson Foods Incorporated is ranked company 226 on the 1999 Fortune 500 List. Tysons headquarters are in Springdale, Arkansas and the company employs more than 60,000 people across the United States and Mexico (Tyson Foods website, 1999). Tyson is in the business of processing chicken, fish and other food products. It is best known for its fresh and frozen chicken products. Tyson also retails under the name Louis Kemp seafood and Mexican Originals and supplies fish and poultry products to fast food chains including Kentucky Fried Chicken, Taco Bell and McDonalds (Communications Week, 1996). Tyson Foods expanded their corporate network when they acquired Hudson Foods, Tysons arch- rival, in September of 1997. The deal was conducted during the middle of an e-coli bacteria scare where 25 million pounds of contaminated beef

was recalled, the largest beef recall in United States history. Until that point, Tyson and Hudson had been fierce competitors as Tyson held the title of largest poultry corporation to Hudsons fifth place standing. One anonymous Hudson executive characterized the relationship between the two as highly competitive and stated that "I dont care what the printed mission statement is- the real mission of Hudson Foods is to take Tysons business, period." For over a decade, Tyson chair Don Tyson had approached Hudson chair Red Hudson with proposals for selling Hudson but his offers were repeatedly denied. Considering other bacterial outbreaks caused by beef in recent United States history, the Hudson incident was relatively mild. It certainly paled in comparison to the Jack-in-the-Box fast food chain scare in 1993 that sickened 500 and killed four. In comparison, only 16 people became ill in Colorado from ingesting Hudson beef and there were no fatalities. Hudson recalled 20,000 pounds of beef on August 12, 1997. Then, for reasons that remain ambiguous, the United States Department of Agriculture (USDA) demanded that Hudson increase the recall to 1.2 million pounds and again to 25 million pounds. Thomas Billy, head of the USDAs inspection service under the orders of Secretary Dan Glickman, claimed that the department discovered record keeping inadequacies and practices of recycling meat from day to day. However, he refused to elaborate in more detail as to why the recall continued to increase. This resulted in all of Hudsons beef products being pulled from grocery store shelves across the nation regardless of whether they were part of the contaminated lot of meat (Fortune, 1997). Hudson agreed to sell to Tyson a week after announcing that its quarterly earnings would decline by the conservative estimate of approximately 30% after losing Burger Kings business due to the

contamination. Tyson bought Hudson for 642 million, a minimal price according to inside experts (Workforce, 1997). Tysons name has been notorious in the media for various scandals over the past decade, the most prominent involving Tyson lobbyist Jack Williams and former Clinton Administration Secretary of Agriculture Mike Espy. The US Justice Department appointed special prosecutor Don Smaltz to investigate possible links between Agriculture Secretary Espys attempts to halt tougher new chicken inspection programs and suspected gifts from Tyson received by Espy (Fortune, 1996). On March 21, 1997, Jack Williams was convicted of lying to authorities regarding favors granted to Espy compliments of Tyson Foods. The two counts of deceiving investigators carry a fine of $500,000 and a maximum sentence of five years imprisonment. The prosecution argued that Williams concealed evidence in an attempt to avoid admitting his role in providing favors to Espy on behalf of Tyson. Favors included a $1,200 Tyson Foundation scholarship for Espys girlfriend, plane travel valued at approximately $1,000, tickets and air travel to a football playoff game in January 1994 as well as other gifts valued at $12,000 (Human Events, 1997). Eventually, Tyson paid 6 million in fines and investigative costs claiming that they agreed to fines to avoid a more costly legal battle. Espys position as Secretary of Agriculture was terminated due to his numerous legal problems and his conviction in the Tyson case (Newsweek, 1998). Another of Tysons legal battles involves insider trading. The Securities and Exchange Commission (SEC) filed a lawsuit in federal court in Fayetteville, Arkansas charging Don Tyson with tipping a fishing buddy about his upcoming plans to purchase Arctic Alaska Fisheries Corp. The SEC alleges that

Tyson revealed his plan to friend and fishing companion, James Cameron, concerning an upcoming bid on the corporation. While the two were fishing and traveling Europe in May and June of 1992, Cameron consulted his broker from England and purchased 9,000 shares of Arctic at $6.625 apiece. Subsequently, Cameron made a profit of $46,125 two weeks later when Tyson foods announced its $12-a-share bid to Arctic. Tyson is heavily involved in networking in his native Arkansas, often with political figures such as then-governor Bill Clinton. While in office in Arkansas, Clinton bestowed numerous tax breaks on Tyson Foods for expanding its workforce (the means by which this occurred are discussed in more detail on pg.4). In return, Tyson has provided the Clintons with complementary private airplane travel for business and personal trips. James Blair, Tysons general council, has also worked as Hillary Rodham Clintons advisor when she made her profit on the commodities market in the later 1970s. James Blair is married to one of Bill Clintons top campaign advisors, Diane Blair. The couples share a close relationship and have been known to spend vacations together at each others homes. The ties between Clinton and Tyson run deeper still considering that Tyson has been a major supporter of Clintons political ventures for numerous years. Tyson Foods contribution to the federal candidates in 1997-1998 totaled approximately $46,500 and contributed the largest donation from the poultry and eggs industry with an $180,150 donation. Tyson Foods also lent its support to the 1993 Presidential Inaugural Foundation with a $100,000 donation (Center for Responsive Politics website, 1999). The relationships between the well-connected in Arkansas are strong. According to former Arkansas State Police Investigator Julius "Doc" Delaughter, "in Arkansas there are

two sets of laws, one set for the politically connected, and one set for the working class." In an interview conducted in November of 1995, Delaughter explained the precarious nature of his position in Arkansas. According to Delaughter, he was elected sheriff of his small county after graduating from college. Shortly after, he was introduced to Governor Bill Clinton and "his way of doing business". He claims that he was demoted to a position in the Arkansas State Police department when he refused to "play their dirty politics". Delaughter claims that while he was employed with the State Police, he uncovered enough information tying Don Tyson to trafficking of narcotics to initiate an investigation. However, his hopes of engaging in an investigation were never realized because he resigned from his position in 1990 due to severe harassment directed toward he and his wife. (The Washington Weekly, 1995). When Bill Clinton was campaigning for his first term in the White House he boasted that since he took office in Arkansas in 1978, more than 200,000 jobs had been created. However, he failed to mention that although Arkansas was ranked first in job creation, new jobs were generated solely in the poultry industry. Poultry is the major Arkansas employer, providing a living for one out of twelve residents. In an attempt to create jobs and encourage business, it can be concluded that Clinton chose quantity over quality of positions. It is estimated that thousands of poultry workers are exposed to harsh working conditions and receive minimal compensation. The result is high profits for the poultry industry owners, low costs for consumers and health problems for poultry workers. Due to the economic success of the poultry industry and the benefits that Arkansas received, Clinton was hesitant to challenge

the financial titans on behalf of those who sit at the bottom of the social ladder. Although Tysons 1992 sales of 4 million were double that of the Arkansas state budget, the workers failed to get a share in the wealth. The industrys pay hovered at just seven dollars an hour when the industry as a whole averages ten dollars an hour. The conditions of the plants offer no fringe benefits. Some rooms are cold; others so hot and ill-ventilated that visitors become nauseous. Employees are routinely exposed to feces, blood, guts and chicken fat. The assembly lines move chicken carcasses past workers at a rate of 70 to 90 per minute, a rate that causes many workers to fall prey to repetitive motion disorders. The Labor Department Statistics report that 27% of poultry workers suffer job-related illnesses and injuries per year. A National Institute for Occupational Safety and Health study revealed that 1 in 3 poultry employees had work induced muscular-skeletal disorders resulting in moderate to extreme pain. Many employees are forced to quit within a year of their initial hiring due to injury or reduction in real salaries as the work -load increased. When workers and chicken farmers attempted to organize in February 1992, Tyson managers received a cautionary memo that urged them to advise those contemplating joining forces with the group that it was comprised of "shady characters" such as "socialists" and "animal-rights activists" (Time, 1992) Conditions at Tyson plants in the state of Missouri are dire. When Tyson opened a plant near Sedalia, Missouri, Tyson was unable to find workers willing to subject themselves to the infamous working conditions. Tyson representatives began visiting with state Senator James Mathewson who sponsored the Direct Job Placement Program bill shortly after Tyson

arrived. According to Linda Messenger, welfare director of Pettis County (where the program was initiated), the program was "born out of Tysons need for additional workers." The plan involved placing welfare recipients into unskilled or semi-skilled positions at the Tyson plant. This grants large companies such as Tyson a virtual monopoly over job placement by using welfare offices as their own "personal hiring halls." The state sends recipients on a job interview with Tyson where they are nearly always offered a job. If the recipient declines the job or refuses to interview with Tyson, the agency expunges the individuals file from the system or sanctions the recipient by withholding food stamps. One woman was told that she had to work at Tyson even though she had no transportation and she would be forced to walk six miles to the plant. The woman had to return to work just eleven days after giving birth to her child in order to avoid being sanctioned. Although the program has driven many people off welfare, only a fraction has actually been placed in jobs. According to local welfare administration records, 195 recipients were sent to interview with Tyson in 1998. Only 22 accepted a job that paid $6.70 per hour while 39 others were sanctioned. The rest of the recipients, comprising 134 people, are no longer on the county rolls and remain unaccounted for. Mark Greenberg of the Center for Law and Social Policy in Washington D.C. concedes that the government offers "caseloadreduction credits" to states who succeed in reducing their welfare rolls. The government does not demand that states disclose whether individuals cut from assistance have been placed in a job. Therefore, the state could satisfy all the requirements necessary to receive credits without having any former

recipients who are gainfully employed Due to the harsh conditions that have previously been described, those who do work for Tyson usually leave their jobs within the first year of employment. The program seems to be custom made for Tyson who keeps close contact with the Missouri Division of Family Services. High turnover in Tyson positions causes a constant need for new workers and contact with the agency allows Tyson continual access to workers. If all else fails, Tyson has not hesitated to tap into Third World nation work reserves. Numerous union officials report that Tyson recruits workers from Mexico and Guatemala by encouraging the proliferation of Tyson literature in these areas. Workers even earn monetary bonuses as incentives to locate new workers. Former Tyson employee Jason Wolfe claims that Tyson transported workers from Mexico to Missouri in a freezer truck and offered them housing in mobile-home facilities. Tyson official Ed Nicholson denied that Tyson recruits workers from Mexico but admits that "sometimes literature got passed along to people down there" and that people have come from Mexico and Guatemala seeking employment (Progressive, 1998). Tysons blatant disregard for individuals has extended so far that a Tyson plant in Green Forest, Arkansas polluted local residents wells with illegal overruns in 1983. Residents waited three years for Governor Clintons administration to prosecute Tyson, but to no avail. The residents eventually had to hire an attorney and Tyson was fined for polluting. It is apparent from the evidence presented that Tyson Foods chair, Don Tyson is true to his word"The 11th Commandment is that you need to make a profitIf youre not making money, you need to change" and "If it makes money, we expand it. If it doesnt, we cut its throat" (Fortune,

1996). Interpretation of the Data My standpoint in interpreting the research findings is closely tied to the Conflict Perspective. I have found no explicit evidence that indicates that Tyson Foods is discriminatory toward a certain group(s) in its hiring process. In fact, I would characterize Tyson as an equal opportunity discriminator. The discrimination does not occur on the basis of age, gender, race or ethnic background. However, Tyson exploits laborers of all statuses. Workers of a low financial status are all dealt with in a similar fashion. They must work for Tyson or lose the benefits that sustain them. This is a form of forced servitude that is exploitive as well as oppressive. The laborers are exploited because they are forced to work jobs that pose many potential health threats for a meager wage. These workers are under the direct social control of the state of Missouri that has the power to take away their benefits if they do not take health-threatening jobs. The laborers are oppressed as a group because Tyson recognizes recipients as unskilled working class or working poor individuals with few if any options and forces employment based upon that knowledge. These individuals leave Tyson with no new marketable skills that can be used to find gainful employment. Numerous workers have developed serious health problems as a result of working for Tyson. One may logically conclude that the individuals standing has not been improved through this work experience regardless of how hard they have worked. Subsequently, individuals are locked into the cycle once again. Tyson even resorts to hiring workers from developing nations. I think this creates an industrial labor reserve and makes it more

difficult for American workers to collectively challenge their exploitation. From Tyson officials viewpoint from a much higher position on the social ladder, Tyson may be helping people find employment who had previously lacked the option to work. Although I certainly do not subscribe to this viewpoint, I could see how officials might. The Direct Placement Program in Missouri is providing jobs for those who had none. Some workers come from other areas in an attempt to improve their situation and some individuals situations may improve relative to their place of origin (the Mexican worker, for example). It is at this juncture that I must add that although the people are employed full-time, a $6.70 hourly wage still places the worker at poverty level by the national standard. Industry officials main concern in a capitalist economy is maximization of profit. As long as records indicate that Tyson has generated profit, the officials have done their job. The company may even be looking for new innovations in increasing the profit margin. That is the nature of this type of economic system and the official is not to blame. I have implied that an indirect connection exists between USDA Secretary Dan Glickman and the Tyson structure. I could recover no evidence that directly linked Glickman to Tyson. Yet, in light of Tysons lateral networking with President Clinton and Glickmans appointment by Clinton, I have inferred that a relationship exists. I found the USDAs treatment of Hudson to be conspicuous considering the minimal threat that Hudsons beef had posed. Comparing the severity of Hudsons contamination with Jack-inthe-Box, it is odd that Hudson suffered more severe consequences when the effects of its contamination were less threatening to fewer people. The fact that Tyson bought Hudson in the middle of the scandal that caused a loss of 30% of earnings is also telling.

Networking occurs between powerful, wealthy individuals to keep wealth between friends. Insider trading and favors are part of the hierarchy. Interestingly enough, when a powerful person such as Don Tyson is tied to criminal activities, someone of lower rank acts as scapegoat. This is the case in the Mike Espy bribery incident. One can be certain that Tyson lobbyist Jack Williams was not acting solely on his own behalf when he granted favors to Espy. Yet, Don Tyson seems to have escaped the incident virtually unscathed. I believe former Arkansas State Investigator Doc Delaughter phrased it best when he said that "there are two sets of laws, one set for the politically connected, and one set for the working class."