Currently browsing posts about: Coronavirus

If Covid-19 does anything useful, it will be to expose how badly treated are low-wage farm, slaughterhouse, and grocery workers, suddenly deemed essential.  It also exposes the bad treatment of restaurant workers, now unemployed, and many paid so poorly that they do not even qualify for unemployment insurance.

Where are labor unions when we need them?  The union that organizes slaughterhouse workers explains why it is so weak.

Today, workers have lost power at the bargaining table. Giant meatpacking and food companies are more determined than ever to keep labor costs as low as possible and production as high as possible. This means hiring cheap labor, maintaining intolerably high line speeds, demanding cuts in wages and benefits from unionized facilities…Other companies actively exploit our broken immigration system, purposely recruiting and hiring undocumented immigrants to create a disposable workforce. These immigrants often don’t speak English and aren’t aware of labor laws or their rights on the job. It’s a vulnerable, easily-intimidated workforce too afraid to speak out…This has resulted in an industry where workers have less bargaining power, where it’s becoming harder and harder to earn enough to support families, and where it’s becoming less safe to work.

The good news: signs of a newly emergent worker movement in recent strikes.  These are listed here.

The impact of the Coronavirus pandemic is a good reason to support this movement.

Organize!

Addition: This article, just out, has a good summary of the history of meatpacking unions.  

For several decades after World War II, conditions in meatpacking plants steadily improved as a result of pressure from workers themselves.  Starting in 1943, the United Packinghouse Workers of America, a labor union, organized meatpacking employees in major cities. At the height of its influence, this union secured “master agreements” with the largest firms, such as Armour and Swift, ensuring standard wages and working conditions across the industry.  One source of the UPWA’s influence was its ability to build interracial alliances.

Who knew that meatpacking plants would become the flash point for everything that’s wrong with our food system.  An alarming 18% of packinghouse workers are infected with Covid-19—the ones known.

Public health authorities insisted that the plants be closed, and Food Dive lists the ones that did.

Because the plants closed, farmers have nowhere to send their ready-for-slaughter animals.  But, says Civil Eats , don’t blame them for having to cull their animals.  It’s not their fault; it’s the fault of the big companies that own the animals.

Farmers under contract don’t own the animals they are raising, and therefore cannot simply find a new market for them…The reality is that farmers don’t have to option sell the animals anywhere else. If the company tells them to euthanize an entire flock of the bird it owns on the spot, farmers have no choice but to comply—even as consumers clamber over empty shelves in the supermarkets, farmers are forced to depopulate.

What happens to the dead animals?  There really are no good options.

Burning, burying, or composting up to 70,000 hog carcasses a day—or even grinding them into dust—could have serious consequences for our air and drinking water.

What happens to the workers, now forced by presidential order to go back to the plants?

In interviews with poultry workers in Georgia, Arkansas and Mississippi a similar pattern of alleged negligence, secrecy and mismanagement emerged at facilities operated by some of the largest food manufacturers in America…For more than a century, the meatpacking industry has been a symbol of how corporations are able to exploit workers in the name of efficiency. The Covid-19 outbreak has opened another chapter.

Trump, says The Guardian,  is marching meatpacking workers off to their deaths.

With his executive order on Tuesday night, the president is in effect overruling safety-minded governors and mayors who have pressured numerous meat, pork and poultry plants into shutting temporarily after they had become hotspots that were spreading Covid-19 through their surrounding communities. With such a move, Trump is – let’s not mince words here – is showing contempt for both workers’ health and public health.

What is this really all about?  Read this analysis in Dissent.

Why has the pandemic thrived in meat factories? It was a perfect storm caused by a whole raft of dysfunctionalities, from the rise of giant agribusiness companies to the hollowing out of the nation’s regulatory state, and the hyper-exploitation of a vulnerable, largely immigrant working class which staffs the lines. Occupational Safety and Health Administration (OSHA) inspections have long been laughable at these plants. Fines, when leveled, tend to be a few thousand dollars, a pittance for billion-dollar corporations. The low-wage workers who staff the plants live in cramped quarters, sometimes with more than one family sharing the same dwelling—so if one person gets sick, the disease can spread quickly…By intervening so directly in the food-chain crisis, the Trump administration has thoroughly politicized the conditions under which food is produced.

I suppose we must thank the Covid-19 pandemic for so clearly exposing deep structural problems and inequities in our food system.

Will a new labor movement arise?  See tomorrow’s post.

Addition

State Attorneys General have written a letter expressing anti-trust concerns about how consolidation in the meat industry has led to this crisis.

Given the concentrated market structure of the beef industry, it may be particularly susceptible to market manipulation, particularly during
times of food insecurity, such as the current COVID-19 crisis. During an economic downturn, such as that caused by the current pandemic, firms’ ability to harm American consumers through market manipulation and coordinated behavior exacts a greater toll, providing an additional reason for conducting a careful inquiry into this industry.

Thanks to  Jane Snell for alerting me to the UK’s Krispie Kreme efforts to deal with Covid-19.  It provides a Krispie Kreme Coronavirus Update website.

In addition to delivering surprise doughnut packages, we opened our first drive-thru in Manchester on 16^th April. The drive-thru is serving NHS, Police and Fire workers, who will be eligible to receive complimentary hot drinks and one of our three-packs of original glazed doughnuts. We hope to have all nine of our drive-thrus opened by the 27^th April, to serve NHS, Police and Fire workers, to support them in the battle against COVID-19.

The Update’s Community page, “Serving Smiles,” says:

We’ve all been asked to do our bit. To stay at home and patiently sit. To social distance. To wash our hands. To clap for carers. To call our grans. Big or small we all have our part to play. And ours? It’s delivering moments of joy each day. Now more than ever you all deserve a treat. And we want to remind you that life can be sweet. So we are back up and running throughout the British Isles. We are here to serve. Here to serve smiles.

It gets better: Krispie Kreme wants you to join its social movement.

The site comes with a Coronavirus Q and A.  I know you will be relieved to see this one:

The CEO says “I want to reassure you that the safety and wellbeing of our staff will always be our No 1 priority.”

Yeah, right.

I don’t see anything here about worker pay, alas.

Or about how eating fewer doughnuts might be a good idea right now.

I’ve been collecting sources of information about the effects of the Coronavirus pandemic on food systems.  Here are some with information that might be useful.

US Right to Know: Coronavirus Food News Tracker: Best articles on the pandemic and our food system

Hunter NYC Urban Food Policy Center: COVID-19 Food Resources and Guides

Covid-19 puts the conflict between corporate interests and public health in stark relief.

The Washington Post tells us that President Trump signed an executive order to force meat processing plants to stay open—“to head off shortages in the nation’s food supply chains”—despite the risk posted to workers from Covid-19.

Trump invoked the Defense Production Act to classify meat plants as essential infrastructure that must remain open. Under the order, the government will provide additional protective gear for employees as well as guidance.

What’s this about?  The Counter explains this as the result of a public lobbying by John Tyson, chair of Tyson Foods (Big Meat) in his blog and in a full-page ad in Sunday’s New York Times. I clipped the ad. It complains that health authorities are forcing closure of his plants putting the meat supply—never mind his workers—at risk:

In small communities around the country where we employ over 100,000 hard-working men and women, we’re being forced to shutter our doors. This means one thing – the food supply chain is vulnerable…millions of pounds of meat will disappear from the supply chain…We have a responsibility to feed our country. It is as essential as healthcare….Our plants must remain operational so that we can supply food to our families in America. This is a delicate balance because Tyson Foods places team member safety as our top priority.

To this last statement, one can only respond: yeah, right.

Tyson is one of the meat Big Four along with JBS, Cargill, and Smithfield.  These hold about an 80% share of  the US meat supply chain, worth more than $50 billion a year.  This is a highly concentrated industry; problems have a disproportionate impact.

But let’s talk about worker safety.

Food Dive is keeping track of meat plant closures

A Washington Post investigation found plenty of evidence that Tyson, JBS, and Smithfield told workers to stay on the job when sick.  Workers at one Smithfield pork plant have sued the company on the grounds that they were threatened with disciplinary action if they covered their faces when coughing or sneezing as they might miss some meat on the line.  Smithfield denies these allegations.  In one court challenge, however, meatpacking workers have won.  The courts ordered Smithfield to comply with public health guidelines at a pork plant.

I’m guessing more lawsuits are to come.

The Occupational Safety and Health Administration (OSHA) and CDC have issued new safety guidance—voluntary, of course—for meatpackers.

OSHA and the Department of Labor make it clear that the president’s order trumps (sorry) the authority of state and local health departments to shut down meat plants.  Too bad if the plants are viral epicenters and put workers—and their families and community menbers—at risk.

And USDA isn’t helping.   It is allowing more crowding of workers at chicken processing plants.

Here’s what the American Meat Institute says about what this industry does for its workers.  Average salaries?  $25,000 annually.

What power do such low-wage workers have?  The United Food and Commercial Workers International Union (UFCW), which represents meatpacking employees, says 72 workers have died, and 5322 are ill from Covid-19.  It lobbies on their behalf, but does not have much power.

Why?  It’s worth reading the history of this organization.

Today, workers have lost power at the bargaining table. Giant meatpacking and food companies are more determined than ever to keep labor costs as low as possible and production as high as possible. This means hiring cheap labor, maintaining intolerably high line speeds, demanding cuts in wages and benefits from unionized facilities…Other companies actively exploit our broken immigration system, purposely recruiting and hiring undocumented immigrants to create a disposable workforce. These immigrants often don’t speak English and aren’t aware of labor laws or their rights on the job. It’s a vulnerable, easily-intimidated workforce too afraid to speak out…This has resulted in an industry where workers have less bargaining power, where it’s becoming harder and harder to earn enough to support families, and where it’s becoming less safe to work.

Covid-19 confirms these points.

I consider this an American tragedy.

Coronavirus affects everything in the food system.  Here’s what it’s doing to ethanol and alcoholic beverages.

Fuel ethanol

Q.  What does fuel ethanol have to do with food politics?

A.  About 40% of America’s corn crop is used for ethanol for cars, as a result of the fuel standards law requiring ethanol to be blended into gasoline.

Comment: Growing corn for ethanol seems absurd to me, particularly because the energy gain is so low—about 2% according to the USDA.

With that said, Covid-19 is unquestionably bad for the fuel ethanol business.

• Ethanol plants are in trouble.  People aren’t driving cars as much or using gas.
• Only about half as much ethanol is being used as was used last year—the lowest since 2010.
• The USDA is not providing emergency funding for biofuels.
• Corn farmers are upset.  There is less of a market for their overplanted corn.

Booze

Alcoholic beverage companies that donate to Coronavirus causes are seeing huge increases in sales—as much as a tripling.

But beer has a problem.  It—and sodas and seltzers—need carbon dioxide gas to make them bubbly.  Ethanol plants collect this gas as a byproduct.  If they shut down or reduce output, the gas supply goes down.  Expect shortages.

If Covid-19 does any good at all, it is to illustrate the interconnections and contradictions of our often bizarre food system.

Recall that Americans spend about half our food dollars on food consumed outside the home.   Therefore, the virus-induced closure of restaurants affects food supply chains, but it also affects restaurant workers, owners, operators, and patrons.

Restaurant workers

A survey by the New York State Restaurant Association says 80 percent of state restaurant workers have been laid off since the outbreak started—more than 527,000 people.

In a letter to Congress, the National Restaurant Association says 8 million restaurant employees have already been furloughed or laid off, or two-thirds of the entire workforce.

The New York Times reports that restaurants account for about 40 percent of COVID-19 related layoffs, the most of any industry.  This statistic is based on New York State Department of Labor data.

Restaurant owners

To get an idea of what this is like for small restaurant owners, read Gabrielle Hamilton’s account in the New York Times Sunday Magazine: My Restaurant Was My Life for 20 Years. Does the World Need It Anymore?  Hamilton is the award-winning chef-owner of Prune, a small restaurant in Manhattan’s East Village.

The Wall Street Journal reports that restaurant chains cannot adequately source masks and gloves for their employees.

Restaurant patrons

Tom Sietsema, the restaurant critic for the Washington Post, writes about what it feels like to not be able to go to restaurants.

Gee, do I miss the good old days. And boy, am I trying hard to summon them from home. Honestly, though, my new acquaintances Caviar, Postmates and Uber Eats can never replace all the in-the-flesh servers and chefs who have made Washington a premier restaurant destination in recent years.

The bailouts

Restaurants are having special problems with the government’s forgivable loan program.  It turns out, the expansion of unemployment benefits authorized by the $2 trillion stimulus package sometimes pay workers twice their restaurant salary.

What?  Unemployment benefits pay MORE than restaurant work?  The shocking figures: unemployment benefits go to an average high of $970 per week, but this is nearly double average weekly pay within the food industry.

The $350 billion loan program quickly ran out of money when more than 46,000 loans were approved.   Food services firms got $30.5 billion.

Most of the money went to large restaurant firms: ‘The Big Guys Get Bailed Out’: Restaurants Vie for Relief Funds”

The provision, in a section outlining which small businesses qualify for loans from the federal government, allowed big chains like Shake Shack, Potbelly and Ruth’s Chris Steak House to get tens of millions of dollars while many smaller restaurants walked away with nothing when the $349 billion fund was exhausted last week. On Monday, Congress and the White House were nearing a deal to replenish that fund with $300 billion in additional relief.  The inequity caused widespread outrage. Independent owners said it would create a post-pandemic landscape in which chains dominated and small, vibrant restaurants collapsed. Some lawmakers said the outcome had violated the spirit of the legislation.

Chains like Potbelly, Ruth’s Chris Steak House and Taco Cabana qualified to get the maximum $10 million in loans even though they employed thousands of workers.

Some of these companies had been making money but spent it to buy back their own stocks.  As the New York Times reported “Some Companies Seeking Bailouts Had Piles of Cash, Then Spent It.” Those companies, includingd KFC, Wendy’s, and Papa John’s, among others, asked for $145 billion in relief.

These companies had been highly profitable in recent years, yet they were seeking help from the federal government. Where had all their money gone? Like much of corporate America, the restaurant chains had spent a large chunk on buying back their own stock, a practice aimed at bolstering its price. Some were even more vulnerable to the economic shock because they had previously increased their borrowing — including to fund buybacks or pay dividends — and strained their credit in the process.

Some companies, embarrassed by the uproar, returned the funds.  The first to do so was Shake Shack (see Danny Meyer’s statement) 

Now the restaurant industry wants its own targeted recovery fund, as it explained in a letter to Congress.

What will restaurants look like in the future?

For sure, they will be different.

The National Restaurant Association, which represents chain restaurants, issued new general guidelines.   These largely defer to government regulations, but leave most practices to owners’ discretion.

Independent restaurant groups are trying to develop more detailed protocols.  They refer to a set of guidelines  issued by the founder of Black Sheep Restaurants in Hong Kong.

I hope that the revelations about how badly restaurant workers are treated and paid will inspire legislative action.

To me, the most shocking revelation is how restaurant workers who rely on tips do not qualify for unemployment insurance in some states because their salaries are so low that they do not meet earning requirements.  That has to change.

Q.  If you are running a fast-food place, how to cope with having to close and lose sales during the Coronavirus pandemic?

A.  Run an ad: “Stay Home of the Whopper”

Your country needs you to stay on your couch and order in…Do your part. Staying home doesn’t just make us all safer, it makes you a couch potatriot.”

Never mind that couch potatoism puts you at higher risk of obesity, type 2 diabetes, hypertension and, therefore, higher higher risk for the most damaging effects of this virus.

The company is also offering 250,000 free sandwiches to health care workers.

Thanks to a reader, who wished to remain anonymous, for alerting me to this one.