SPRINGDALE, Ark., Sept. 27, 2006 (PRIMEZONE) -- Tyson Foods, Inc. (NYSE:TSN) has resolved a disagreement with the Office of Federal Contract Compliance Programs (OFCCP) over employment practices involving five locations in Arkansas and one in Oklahoma, the company reported today.
The OFCCP conducted compliance evaluations of Tyson hiring activity from 2002 to 2004 at poultry plants in Grannis, Clarksville, Berryville and Van Buren, Arkansas, and Broken Bow, Oklahoma, as well as a Springdale, Arkansas, trucking operation. Based on statistical analyses, the federal agency subsequently alleged the company discriminated against certain female and minority job applicants for entry level production jobs and some trucking positions. Tyson officials denied the claim, stating there were legitimate non-discriminatory reasons for not hiring the applicants. However, the company acknowledged that its defense of this position was hampered by the passage of time since the reviews began and incomplete documentation of its selection processes at these locations.
Tyson Foods has since implemented new procedures to ensure the company retains all relevant documentation of its selection processes and is also conducting more frequent audits of its employment practices. In addition, in an effort to avoid costly and protracted litigation, Tyson has agreed to pay $1.5 million to approximately 2,500 women and minorities who were not hired during the period involved and to make employment offers to some of those individuals who are still interested in working for the company.
"We have a history of working cooperatively with the OFCCP and remain committed to treating all job applicants fairly," said Ken Kimbro, senior vice president of Human Resources for Tyson Foods. "Tyson has a very diverse workforce and strict policies prohibiting discrimination in the workplace. We also communicate our position against discrimination through our Core Values and Team Member Bill of Rights."
During the time period covered by the OFCCP reviews, Tyson's representation of minorities at the named processing plants averaged 59% while the number of females was 49%.
It is Tyson Foods' policy to provide a work environment free of unlawful harassment and discrimination. This position is also reinforced by the company's Code of Conduct, which all Team Members are required to follow.
Tyson supports diversity and inclusion in the workplace, through the company's Office of Diversity Business Practices and its Executive Diversity Business Council, led by Chairman John Tyson. Last year the Council initiated the creation of a new program designed to identify and develop promising workers for upward movement within the company. This effort includes specific attention to the development and advancement of women and minorities.
The OFCCP is part of the U.S. Department of Labor's Employment Standards Administration. The agency is responsible for ensuring that employers doing business with the federal government comply with the laws and regulations requiring nondiscrimination and affirmative action.
Tyson Foods, Inc. (NYSE:TSN), founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef, and pork, the second-largest food company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(tm)" strategy. Tyson is the recognized market leader in the retail and foodservice markets it serves, providing products and service to customers throughout the United States and more than 80 countries. The company has approximately 110,000 Team Members employed at more than 300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.