AFF Critique of "Economic Impact: Tomatoes in Florida to McDonald's Study"

April 28, 2006

After reviewing the recently released study “Economic Impact: Tomatoes in Florida,” a report paid for by McDonald’s and prepared by the Center for Reflection and Action (CREA), we have grave concerns about both the reliability of the data presented in the report as well as how this study is being deployed by McDonald’s.

The data presented in the report have been thoroughly and convincingly critiqued in the paper entitled “Critical Analysis of the Report, Economic Impact: Tomatoes in Florida, Report 1” by Professor Bruce Nissen, Director of the Research Institute on Social and Economic Policy, Florida International University. Dr. Nissen is a nationally respected labor economist with particular expertise in the area of wages and labor market conditions in the state of Florida.

We agree wholeheartedly with Dr. Nissen when he concludes that, “Unfortunately, the (study) is so riddled with errors both large and small that it cannot be accepted as factually accurate on virtually any measure.” The critique continues, concluding that “almost nowhere are ordinary norms of social science research followed” in the McDonald’s/CREA study, and that on the issue of wages, the central issue in the study, “the report should have no credibility whatsoever.”

As of the publication of this statement, twenty-nine scholars from the fields of labor law and labor relations – including a former General Counsel of the National Labor Relations Board and the Dean of the University of Maine School of Law – have signed-on to Dr. Nissen’s analysis of the McDonald’s/CREA study. Their statement of support for the analysis concludes, “We agree that the McDonald’s report does not meet accepted standards of research, and its findings and conclusions should not be taken seriously.”

Dr. Nissen’s analysis of the reliability of the McDonald’s study is a powerful document and should be read by anyone sincerely interested in understanding this critical juncture in the movement for a fair food industry. The analysis is available by clicking here. We defer to Dr. Nissen’s critique to convey our concerns about the actual data contained in the report and will instead focus here on McDonald’s decision to use such a clearly ill-conceived and poorly executed study for its public relations purposes.

Undermining precedents for change

As founding and endorsing members of the Alliance for Fair Food (AFF), we represent religious, human rights, and student organizations that have been working with the Coalition of Immokalee Workers (CIW) on their campaign for fair food and are acquainted first-hand with the dire, inhumane conditions under which farmworkers labor and live. It is clear to us that this tomato study is being deployed by McDonald’s not to reach an objective understanding of farmworker wages and working conditions, but as part of a broader strategy to thwart farmworker participation in the advancement and protection of their own rights and to roll back the other precedents established in the historic CIW-Yum Brands agreement of March 2005.

The CIW/Yum Brands agreement ended the four-year, CIW-led, consumer boycott of Taco Bell and established the following key precedents for wholesale reform within the agri-food industry:

  • Yum! Brands is taking supply-chain responsibility for the downward pressure its high-volume, low-cost purchasing practices have on farmworker wages by paying a wage increase directly to the farmworkers that harvest its tomatoes;
  • Yum! Brands is working with the CIW on its code of conduct for the company’s suppliers so that farmworker participation in the protection of their own rights is ensured;
  • Yum! Brands has ensured transparency within Taco Bell’s tomato supply chain.

The principles established in the CIW/Yum Brands agreement set a new threshold for social responsibility in the fast-food industry and in so doing challenged the rest of the industry to meet these new standards. But just as farmworkers and their allies in the religious, human rights, labor, student, and grassroots communities were poised to demand an extension of these precedents to other fast-food corporations, McDonald’s commissioned the CREA study to show that these improvements really aren’t needed at all.

Public relations response to a human rights crisis

The stated purpose of the McDonald’s/CREA study is to substantiate the proposition that McDonald’s suppliers compensate their workers at a rate that is “equal to or better than the ‘penny-a-pound’ increase presently being proposed.” But by defining its purpose in these terms, the study begins with a significant flaw: The CIW has never proposed a simple “penny-per-pound” increase in wages, but rather has consistently, publicly, and clearly insisted that fast-food companies must work with the CIW to implement all the Yum agreement precedents of improved wages, farmworker participation, and transparency. To those principles, the CIW has added the demand that McDonald’s tomato suppliers respect their workers’ universally-accepted human rights, including the right to overtime pay and the freedom of association, as McDonald’s requires respect for those same rights from suppliers in other areas of its supply chain, including the factories in China that produce the toys included in McDonald’s Happy Meals.

As an essential part of its public relations strategy to combat the CIW campaign, McDonald’s has consistently sought to diminish the CIW’s demands and to lower the bar for social responsibility by focusing its public discourse on only the penny-per-pound element of the CIW/Yum Brands agreement. By building this false premise into the very purpose of its study, CREA effectively joined with McDonald’s in its duplicitous efforts to minimize the CIW’s demands and, in so doing, forfeited from the outset any claim to independence or objectivity that might bolster the study's results. In short, McDonald’s set the terms of the study based squarely on its public relations needs, and CREA willingly followed suit.

Farmworkers are not poor?

The study’s results are equally troubling. The central finding of the McDonald’s/CREA study is that farmworkers picking for McDonald’s suppliers are actually not poor. The study asserts that workers laboring for “Grower 1” earn “on average” approximately $14 an hour, with the highest earners pulling in well over $18 an hour. Beyond the fatal methodological problems with the study outlined in Dr. Nissen’s critical analysis that render the study’s results meaningless, it is achingly clear that such an assertion of farmworker wealth (the $18/hour figure puts tomato pickers above the 70th percentile of all Florida workers, according to the 2005 study entitled “The State of Working Florida”) defies common sense as well as decades of reports from the United States Department of Labor. We would add that our own experience also flies in the face of such absurd results.

Many of the AFF’s member organizations have been working cooperatively for generations with farmworkers and social service providers in Florida to address emergency survival needs such as inadequate housing, limited food, and lack of health care and child-care. Because workers are not paid a fair wage by the growers that employ them, they are robbed of the dignity of securing these basic needs for themselves and their own families. Charitable assistance would not be needed if farmworkers for “Grower 1” or any other growers were earning “on average” $14 an hour.

But you don’t have to take our word for it. McDonald’s own partner in the grower-led “SAFE” employer certification initiative, the Redlands Christian Migrant Association (RCMA), is a childcare provider that targets specifically the migrant farmworker community and serves thousands of migrant children statewide – including children of workers picking tomatoes for McDonald’s suppliers. The RCMA enforces a strict income limit on its services, yet faces an ever-growing demand for the essential assistance it provides.

The RCMA exists because it asserts that farmworkers are poor. McDonald’s, RCMA’s partner in SAFE, is attempting to deflect calls for higher wages in its tomato supply chain by asserting that farmworkers are in fact not poor. They can’t both be right. Our experience tells us that RCMA is correct, farmworkers are poor, and do desperately need affordable childcare because their incomes are too low to purchase child-care on the market.

Sweatshop conditions and modern-day slavery

Further, the tomato study fails to mention the broader context within which tomato pickers labor – farmworkers’ explicit exclusion from the National Labor Relations Act and the rise of modern-day slavery.

For decades, respected, faith-based organizations including the National Farm Worker Ministry, Agricultural Missions, and the National Catholic Rural Life Conference, have facilitated cooperative partnerships between our faith bodies and farmworkers organizing for their human rights to a living wage, to organize, to overtime and to other protections that they are not currently guaranteed by law. While the report lauds McDonald’s for asking their suppliers to uphold the law, nowhere does it remind the reader that farmworkers – including the workers who pick tomatoes for McDonald’s – are excluded from key federal laws that protect the rights of employees in other industries and would help ensure farmworkers own rights.

Recently, the CIW, the United States Department of Justice and the F.B.I. have successfully investigated and prosecuted five operations of modern-day slavery. In cases of slavery, workers are forced to work against their will, held captive, and coerced through violence or the threat of violence. More than 1,000 slaves have been freed through the CIW’s efforts and five farm labor employers are currently serving time in prison. There are more cases pending. This extreme exploitation does not occur in a vacuum, nor does it occur to the Florida firefighters and police officers or hospital orderlies and construction workers who earn wages lower than many tomato pickers, if the results of the McDonald’s/CREA study are to be believed. Rather, the sweatshop conditions that undeniably prevail in the Florida tomato industry are the fertile ground that allows modern-day slavery to flourish in the 21st century.

That’s why some of our religious congregations have been trained along with social service providers, and law enforcement officers, by the federal government and the CIW to notice the signs of slavery and have worked together on corporate campaigns to change the market conditions in the agri-food industry that foster this dire social evil. The fact that one of McDonald’s own suppliers, AgMart, recently re-hired a crew leader who served time in prison for enslaving workers should give the company pause before indicating that “all is well” for farmworkers in its supply chain.

Moving forward

In our cooperative efforts with the CIW to reform the agri-food industry, we have come to believe that systemic change in the agricultural industry will not come from “weeding out a few bad apples.” Rather, together we must change the balance of power so that farmworkers are finally in a position to protect and advance their own rights. Full farmworker participation in advancing their own rights is a fundamental matter of human dignity and respect for our sisters and brothers who labor in the fields. Full farmworker participation is also critical to ensuring change actually occurs on the ground.

By not acknowledging the need for farmworkers to participate with McDonald’s and its suppliers in crafting solutions to the exploitation farmworkers face, and even denying such exploitation exists through its discussion of wage rates, housing, purchasing power, and McDonald’s current certification process and code of conduct, this commissioned tomato study dangerously reaffirms the immoral inequities in power between grower and farmworkers that have been the root cause of farmworker exploitation.

McDonald’s is in a position to be a valuable ally in correcting these inequities in power that have afflicted farmworkers and their families for far too long. Yum Brands has already demonstrated that working together with the CIW has brought positive benefits for itself, its suppliers, and for the tomato pickers.

It is our sincere hope that McDonald’s will look upon this obviously flawed and failed tomato study as an opportunity to reevaluate its approach and change course, instead working as genuine partners with the CIW, the farmworker organization that is a proven, respected force for human rights and voice for the farmworkers whose undervalued labor provides millions of pounds of tomatoes for McDonald’s salads and sandwiches.

Signatories:

The Rev. Dr. Clifton Kirkpatrick, Stated Clerk of the General Assembly
Presbyterian Church (U.S.A.) [founding member]

Todd Howland, Director
Robert F. Kennedy Memorial Center for Human Rights [founding member]

Cathy Albisa, Executive Director
National Economic and Social Rights Initiative [founding member]

Sean Sellers and Melody Gonzalez
Student/Farmworker Alliance [founding member]

Brigitte Gynther and Sarah Osmer
Interfaith Action [founding member]

The Rev. Dr. Robert Edgar, General Secretary
National Council of Churches of Christ in the U.S.A.

Rob Keithan
Unitarian Universalist Association of Congregations

Rev. Linda Jaramillo, Executive Minister
United Church of Christ Justice and Witness Ministries

Virginia Nesmith, Executive Director
National Farm Worker Ministry

Kim Bobo, Executive Director
Interfaith Worker Justice

Arnold Nelson, Jr., President
Disciples Home Missions of the Christian Church (Disciples of Christ)

Brother David Andrews, CSC, Executive Director
National Catholic Rural Life Conference

Buddhist Peace Fellowship

 

 

 

 


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