Sanderson Farms Inc
SAFM:US US8000131040
Key Information
HQ:
United States
Market Cap:
$4.23bn
Primary Markets:
North America, LATAM
This company is no longer assessed by the Working Conditions Engagement.
Working Conditions Engagement
Analysis Overview
Grievance Mechanisms Economic Incentives Distribution by Contract Type Oversight of Governance Structure Support Worker Representation Engage Workers on Industry Trends
Analysis Breakdown
Health & Safety
Low
Grievance Mechanisms - Availability & Access
Sanderson Farms runs a group-level grievance mechanism. Based on its recent public disclosure, the channel is partially accessible as the company does not state whether it is available to external stakeholders or in which languages it is available.
Partial
Grievance Mechanisms - Effectiveness & Evaluation
There is no public information on how the company assesses the effectiveness of its grievance mechanism. Yet, the company states that workers attend an annual three-hour paid training followed by a survey that reaches senior management. It is not clear whether the survey addresses grievance mechanisms and the company does not disclose metrics on survey responses.
Low
Grievance Mechanisms - Categories & Reporting
The company does not report grievance metrics.
Did Not Find
Grievance Mechanisms - Channels for H&S and Worker Rights
The company does not disclose which channels are available for its employees to report health and safety or worker rights cases.
Did Not Find
Grievance Mechanisms - Resolution Process
Sanderson Farms does not disclose the process that it follows to resolve grievances reported through its channel.
Did Not Find
Economic Incentives - Sick Pay Entitlement
The company does not provide disclosure on its paid sick leave policy. The company discloses that it offers free counselling for workers, vision and dental insurance, and that it pays 75% of the premium cost of its health insurance plan for employees and their families. However, it is not clear whether these benefits cover all workers regardless of their employment contract type.
Did Not Find
Economic Incentives - Other Economic Incentives
The company does not disclose the economic incentives it offers to workers.
Did Not Find
Fair Working Conditions
Partial
Distribution by Contract Type
The company discloses that its total workforce is made up of 17,662 employees in 2021, 2,021 (over 11%) of which are salaried and 15,641 are hourly (almost 89%). Sanderson Farms does not disclose whether it hires subcontracted workers.
Good
Oversight of Governance Structure
Unlike in its 2020 disclosure where it discussed grievance mechanism data reported to its Audit Committee, the company does not provide any disclosure on labour metrics reported to its Board beyond accident and injury rates.
Low
Worker Representation
Low
Support Worker Representation - Internal & External Structures
Board-level representation:
The company does not provide any evidence of Board-level worker representation or alternative mechanisms to ensure worker voice is heard by the Board.
Internal committees:
Sanderson Farms does not report on internal committees through which worker voice is represented in the company.
Dialogue with trade unions:
Whilst Sanderson Farms makes a general statement on its respect for the rights to freedom of association and collective bargaining, the company fails to report on how it supports worker representation through constructive dialogues with legitimate trade unions.
Did Not Find
Support Worker Representation - Restrictions Under Law
The company does not operate in markets where freedom of association is restricted under law.
N/A
Support Worker Representation - Operations in China
N/A
Support Worker Representation - Collective Bargaining
The company provides disclosure on the collective bargaining agreement coverage of its workforce: 2,306 workers are covered across two plants. The company discloses the number of workers covered, by plant, the union representing its workers, and the date of expiry of the agreements. The company does not disclose whether it extends the terms of CBAs to all workers at a plant, regardless of their involvement in the bargaining process.
Good
Engage Workers on Industry Trends - Impact assessment on Employees
Automation:
The company publicly discloses that it is investing in technology, including automation and innovation, with the outcome of reducing repetitive tasks which can lead to strain and muscle fatigue. However, the company does not disclose an assessment of the impacts of its automation strategy on its workforce.
Climate risk:
Whilst it has not set an SBT, Sanderson Farms discloses its climate mitigation and water risk management strategies publicly. However, the company does not provide evidence of a risk assessment being carried out on the impacts of this strategy on its workforce.
Low
Engage Workers on Industry Trends - Workforce Engagement
The company does not show evidence of engaging its workforce or worker representatives on the issues of automation and climate risk mitigation.
Did Not Find
Engage Workers on Industry Trends - Just Transition
The company makes no reference to support for Just Transition in public information.
Did Not Find
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Workstream Information
YoY Performance:
No Change
Index Working Conditions Score:
45/100
Assessed Proteins:
Poultry & eggs
Last Updated:
14 February 2023
2022 Resources
Working Conditions Engagement Phase 2 | Key Takeaways Phase 2 | Public Progress Report Working Conditions Engagement