WH Group Ltd

China (formerly known as Shuanghui) The company discloses three channels are available for its workers in China to report grievances, including a whistleblowing telephone line, whistleblowing email, and a “manager opinion” mailbox, which are available 24/7. The company offers limited disclosure on the availability and access of these mechanisms; whilst the company has a system of protection for whistle-blowers and discloses that it offers anonymous reporting, it is unclear whether its channels have language support and are open to suppliers and third parties. US (Smithfield) The company discloses that workers in its US operations can raise grievances to managers, the HR department, or via Smithfield’s “Speak Up! Hotline”. The hotline is available via telephone, run by a third party, toll-free, available 24/7, and provides the option of anonymity. The company adds that it encourages business partners and third parties to also report compliance concerns.

The company states that employees in the US can provide feedback on reporting mechanisms via the following methods: • A questionnaire completed in new employees’ first 90 days and weekly one-to-one meetings with management for new employees. • Retention and exit interviews. • Employee Advisory Council meetings at non-union plants. • Joint Labour Management meetings at unionised plants. However, it is unclear how each of these feedback methods assesses the effectiveness of the grievance reporting mechanisms. Further, WH Group’s public reporting does not indicate whether feedback or evaluation processes are in place to assess reporting mechanisms outside the US.

The company reports that 600 employees and employee relatives used Smithfield’s hotline during the reporting year. The company discloses that Smithfield received reports on issues such as health and safety, discrimination and harassment, animal welfare, company policies, and human resources. However, the company does not break down how many grievances were received in each category or how many reports were received from third parties or suppliers. The company does not disclose grievance reporting data for its operations in China.

The company states that Smithfield received reports from employees relating to health and safety and discrimination and harassment during the reporting year. However, it is unclear if the company provides the opportunity for worker rights violations other than discrimination and harassment to be reported. Further, the company does not disclose which reporting categories are available to employees outside the US.

WH Group discloses the process through which grievances received via email by the Audit Committee are investigated. The process involves: • A preliminary investigation by the Audit Committee. • An internal investigation. • Consultations with third-party advisors. • Law enforcement procedures. However, it is unclear whether this process also covers grievances received by telephone or how the group investigates and resolves grievances received in the US.

WH Group discloses that employees in its US operations have access to paid sick leave. However, the company does not disclose details of this provision, such as the level of pay provided or the number of paid sick days available to employees. Further, WH Group does not disclose whether it provides paid sick leave to employees in its Chinese or European operations.

Smithfield discloses that it has an employee referral bonus programme and an annual incentive programme for all salaried employees. However, the company does not disclose further details of either of these schemes. The company does not disclose whether it provides other economic incentives for employees in China.

WH Group discloses that 93% of its workforce are direct, full-time employees, and 7% are subcontracted. The company reports that 92.1% of its employees are frontline employees, 6.8% are middle management, and 1.1% are senior executives. WH Group also discloses the proportion of its workforce employed in each operating region: the US, Europe, and China. Additionally, Smithfield reports the breakdown of its workforce across contract types, including temporary, part-time, and subcontracted workers.

WH Group discloses that its ESG Committee reports to its Board of Directors on ESG performance and policies but does not disclose whether labour metrics are reported to the Board on a regular basis. Similarly, Smithfield’s Chief Sustainability Officer regularly meets with WH Group’s CEO and senior management to discuss environmental and social issues relevant to Smithfield, but the company does not disclose which labour metrics, if any, are discussed in these meetings.

Board-level representation The company does not disclose whether it has direct or indirect worker representation at the Board level. Internal committees WH Group discloses that workers at non-unionised plants in the US have an Employee Advisory Council. However, it is unclear whether internal representation is also offered in non-unionised plants. No internal forms of representation are disclosed for the company’s operations outside the US. Dialogue with trade unions Smithfield reports that some of its facilities are unionised and that it honours the collective bargaining agreements it has made with unions, demonstrating that it has engaged in constructive dialogues with union representatives. The company also requires suppliers to respect their employees’ rights to freedom of association and collective bargaining.

Smithfield’s Human Rights Policy includes an acknowledgement that, in some countries, workers are unable to freely organise and associate with unions and that in these situations, the company is open to other forms of worker representation. The company does not disclose examples of what these alternative forms of representation are.

For its operations in China, WH Group discloses that all workers are covered by a “Collective Contract and Wage Negotiation Agreement”. The company states that this agreement consists of measures designed to protect worker rights relating to social insurance and working hours. However, the company does not disclose how or whether it works with provincial or county-level All-China Federation of Trade Unions branches to safeguard the legitimate rights and interests of workers.

WH Group discloses that, at Smithfield, collective bargaining agreements cover 100% of the workforce in Romania, 59% in the US, and 15% in Poland. The company states that in Mexico, two labour unions hold regular meetings to discuss labour issues, but the % of employees covered by collective bargaining agreements is not reported. Similarly, the % of employees covered by collective bargaining agreements in Hungry, Slovakia, and the UK is not disclosed. The company does not disclose extending the terms of collective bargaining agreements to all employees regardless of union status or contract type.

Automation The company reports that it is investing in automation to improve operational efficiency. However, no more detail is provided on the nature of this automation, and the company does not disclose having conducted a formal risk assessment of how this strategy may impact its workforce. Climate risk WH Group has set a near-term emissions reduction target, not yet SBTi certified, and Smithfield has committed to set a near-term SBT as well as being a member of the Business Ambition for 1.5°C. The company provides no disclosure on whether it has conducted a formal risk assessment of how its climate mitigation strategy may impact its workforce.

The company does not disclose whether it engages workers or their representatives in discussions about its automation and climate strategies.

The company does not publicly state support for a Just Transition in the food sector.