Tyson Foods investors have rejected a call for the company, which operates large meatpacking plants in Iowa,to disclose more information about how it protects workers from abuse.
Investors representing four out of every five shares of Tyson Foods stockvoted down a proposalat a Feb. 11 shareholders meeting for the company to create a "human rights due diligence report,"according to a corporate disclosure released Feb. 17.The company's board of directors previously asked shareholders to vote against the measure, writing "we disagree with the implications."
Members of the company's founding family and other corporate executives dominate these votes at Tyson because members of the Tyson Limited Partnership, the family entity, own 71% of all stock.
In addition to the human rights report, investors rejected a measure to recapitalizethe company's structure, so that each share of stock is equal. Tyson Limited Partnership sharesare currently worth more than common stock shares.
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Investors also rejected a measure calling for the company to disclose more information about its "lobbying and grassroots lobbying communications."
"We remain committed to maintaining open dialogue and ongoing engagement with our investors, while continuing to work diligently to drive value and meet shareholder expectations," Tyson Foods spokesperson Gary Mickelson said in an emailed response to questions about whether company executives plan to implement any of the changes voted down during the shareholders meeting. "We look forward to these conversations in the future and believe this engagement is vital to Tyson Foods’ continued success."
Despite the lopsided tallies, the losing side said it has gained momentum. Religious organizations that own Tyson shares, including the Sisters of St. Francis of Dubuque, advocated for the human rights due diligence report this year because of large outbreaks of COVID-19 this spring at Tyson Foods plants, where workers were shoulder-to-shoulder on processing lines.
The advocates also picked up support from The Vanguard Group, one of the world's largest providers of mutual funds. In a disclosure about its vote, the company wrote that it believes Tyson Foods has "legal, regulatory, reputational, and investment risks."
"We believe these are in part because of the board's lack of oversight on human rights risks," added representatives for The Vanguard Group, which did not vote for the report during a previous shareholders meeting.
Investor Advocates for Social Justice, an organization that supports thehuman rights report proposal, estimated that 79% of independent investors voted in favor of the report during the shareholders' meeting.
More:Dismayed by Tyson's pandemic response, Dubuque nuns join other shareholders to call for human rights accounting
The organization defines independent investors as anyone not tied to the Tyson Limited Partnership. The company did not break down the votes beyond top-line figures in its corporate filing.
According to Investor Advocates for Social Justice, 22% of independent investorsvoted in favor of the same proposal in 2019. The organization said support grew to 60% in 2020.
"Tysoninsiders, the board, and senior management cannot ignore this clear call to address material human rights risks,” Investor Advocates for Social Justice spokesperson Gina Falada said in a statement.
In a proxy statement before the vote, Tyson Foods' board of directors pointed out that the company already has a "social compliance audit program," in which an independent group visits 25% of the company's plants to see if employees "understand their rights, benefits and responsibilities related to workplace conditions."
The board said the company's employees can complain about abuse toan ethics help line operated by a third party. The board also pointed to measures the company implemented in an attempt to protect workers from the coronavirus, including giving workers masks and erecting plastic sheets to separate them on the processinglines.
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BlackRock, another significantTyson Foods investor, voted in favor of the human rights due diligence report for the second year in a row.In a statement, BlackRock wrote that Tyson Foods' current steps to protect workers do not go far enough.
The company said auditors should inspect more than 25% of Tyson Foods plants. It also said the company should inspect how its suppliers treat their own workers. BlackRock added that it was troubled by the outbreaks of COVID-19 cases in the plants and findings that managers at the company's Waterloo plant had bet on how many workers would contract the coronavirus.
"[BlackRock] remains concerned about Tyson Foods' health and safety protocols, as well as the overall corporate culture," the company wrote.
Tyler Jett covers jobs and the economy for the Des Moines Register. Reach him at tjett@registermedia.com, 515-284-8215, or on Twitter at@LetsJett.
