JBS S.A.

FAIRR considers JBS’s Ethics Line to have generally good levels of accessibility and availability from its disclosure, including 24/7, anonymous reporting available across multiple platforms with language support. JBS expressly condemns retaliation toward workers reporting grievances through both mechanisms. The Ethics Line is reportedly available to all stakeholders, including suppliers.

JBS’s disclosure reveals that the company has launched a “Speak Up” Campaign in 2022 to encourage more reporting through its Ethics Line. The company also discloses that it conducted a 3-hour, in-person Ethics Line investigation workshop in 2022 for its Human Resources leaders, but it is unclear whether the effectiveness of the channel was assessed as part of this workshop.

JBS reports that its Ethics Line received 5,743 cases in 2022, and provides a geographical breakdown of this data. The company breaks down this data across seven categories: employment practices, fraud/theft/corruption, misconduct, antitrust, discrimination and harassment, conflict of interest, and other. In 2022, 30.6% of cases were related to discrimination and harassment. However, the Ethics Line portal shows that 43 categories are available to report cases. The seven categories reported do not allow us to fully understand where cases specifically arise as it is unclear which of the broader categories each of the 43 fits into.

JBS’s Ethics Line portal lists categories under which users can report cases related to health and safety and worker rights, these are: “unsafe working conditions,” “violations of health and safety policies and procedures,” and “violations of issues related to human rights (child labor, forced labor, and conditions similar to slavery).”

JBS reports that cases received through the Ethics Line are sent to its Global Compliance team for review and investigation but does not provide further details on the process, such as the steps taken during the investigation and does not report the number of cases resolved annually.

JBS does not report on the sick pay policies it makes available to workers.

JBS discloses that workers in its Brooks, Canada facility have access to a daily bonus per employee based on the quantity/quality of their daily output, specific to the chuck line. However, it is unclear whether the company uses measures to ensure the incentive does not encourage risk-taking behaviour. Further, the company does not disclose any other economic incentives outside of its Brooks, Canada operations.

JBS discloses a breakdown of its total workforce across operating geographies and by contract type. The types of contracts covered are permanent, temporary, non-guaranteed hours, full-time, and part-time. However, JBS’s disclosure lacks clarity. For example, workers employed in permanent, temporary, or non-guaranteed hours roles are reported to only comprise 64.3% of the workforce when it likely should be 100%. The company does not disclose whether it employs subcontracted workers, but indicates that it does use subcontracted labour in some capacity to clean its facilities in the US. JBS reports on the recent child labour investigation run by the US Department of Labour, which found that Packers Sanitation Services Inc (PSSI) – a subcontractor used by JBS – was employing children in JBS facilities. The company discloses that it responded with corrective actions, enhanced its policies, and updated audit rights to ensure compliance by third-party contractors. JBS does not provide any further detail on the corrective actions.

JBS’s Socio-Environmental Responsibility Committee advises its board on sustainability risks and opportunities, while the Diversity, Equity, and Inclusion Committee advises on labour management, including recruitment, hiring, training, promotion, and resignation, as well as diversity and inclusion. However, details of what labour metrics the board receives on a regular basis are not reported.

Board-level representation The company does not disclose whether it has direct or indirect worker representation at the Board level. Internal committees The company does not disclose any internal committees available to workers for representation. Dialogue with trade unions JBS does not disclose the size of its unionised workforce or evidence of its constructive dialogues with trade unions.

The company provides disclosure on the proportion of its workforce covered by collective bargaining agreements (CBAs). JBS discloses CBA coverage rates for its workers in Brazil (94%), the US and Puerto Rico (57%), Canada (97%), Mexico (70%), Europe (61%), and Australia and New Zealand (75%). The company does not disclose whether it extends the terms of any collective bargaining agreements to all workers regardless of their contract type or involvement in the negotiations.

Automation JBS Australia owns a controlling interest in Scott Technology, which is a developer of automation and robotics solutions working towards the aim of improving safety, productivity, reliability, and yield. On its automation rollout, JBS discloses its goal to transition to BladeStop Bandsaws, its development of a while bird trussing machine with Scott Technology, and its implementation of automated lamb deboning technology in two Australian plants. JBS does not disclose having conducted any form of risk assessment of how its automation efforts will impact its workforce. Climate risk JBS has committed to set both near term and net zero SBTs and is a member of the Business Ambition for 1.5°C. However, the company does not disclose having conducted an impact assessment of how its climate mitigation efforts might impact its workforce.

The company does not provide evidence of engaging worker representatives on the topics of automation or climate change.

JBS does not publicly state its support for a Just Transition in the food sector.