US poultry giant Pilgrim’s Pride has reportedly reached a settlement to conclude a prolonged legal battle initiated by chicken farmers who accused the company of collaborating with other suppliers to underpay them.
According to Reuters, Pilgrim’s, which is primarily owned by Brazil’s JBS, has agreed to pay $100 million in compensation while maintaining that it has not engaged in any wrongdoing.
The case, known as the “Broiler Chicken Grower Antitrust Litigation,” has persisted for seven years and has seen other notable U.S. meatpackers, including Tyson Foods, Sanderson Farms, Koch Foods, and Perdue Foods, settle similar claims.
If the settlement with Pilgrim’s Pride secures final approval, the total compensation to farmers will amount to £169 million.
A preliminary settlement agreement between Pilgrim’s, a supplier for KFC, and the farmers’ legal representatives was filed recently in the U.S. District Court located in Muskogee, Oklahoma.
The lawsuit made serious allegations, claiming that major poultry producers colluded to suppress farmers’ wages by sharing confidential pay information and agreeing not to poach each other’s farmers.
This legal outcome highlights ongoing concerns within the food and beverage industry regarding compensation practices and the treatment of agricultural labor. It also underscores the need for transparency and fairness in dealings within the food and drink business.
In a statement, Gary Smith, a lawyer representing the farmers, characterized the settlement as an “outstanding” achievement.
This settlement pertains to 24,354 grower participants from January 27, 2013, through December 31, 2019.
In the ever-evolving landscape of food and drink consumer trends, this case serves as a reminder of the critical importance of ethical practices and fair compensation standards in the agricultural sector.
