Perdue Farms announces plant closure and layoffs in Tenn.

DAILY Bites

• Perdue Farms announce plant closure and layoffs in Tennessee, affecting 433 workers.

• Severance packages include up to 10 weeks of WARN protection, additional pay beyond standard compensation, and job placement support.

• Child labor violations prompt $4 million in penalties and reforms.

DAILY Discussion

Poultry processor Perdue Farms plans to close a processing plant in Monterey, Tennessee, on March 28, resulting in 433 people being laid off, according to reports by Putnam County Mayor Randy Porter and the Cookeville-Putnam County Chamber of Commerce.

Porter shared information on Facebook following discussions with Perdue executives after the announcement.

“While this decision is incredibly difficult, it is necessary to ensure Perdue remains fit for the future,” said Kevin McAdams, chief executive officer of Perdue Farms in an email that went out to Porter. “We must make challenging choices today to continue to serve our customers and consumers effectively and to continue to grow our company. This decision was not made lightly, and we are committed to treating every impacted associate with dignity, respect, and care. We extend our deepest gratitude to the Monterey team for their hard work and dedication and remain proud of the contributions they’ve made to our business.”

Perdue stated it would provide severance packages that include extended WARN protection for up to 10 weeks, additional severance pay beyond standard compensation, and job placement support. The company also noted it is working closely with affected customers to ensure smooth transitions.

Monterey has a population of just under 3,000 residents. In his social media post, Porter said local officials and the Chamber of Commerce would work to assist workers during this time.

Amy New, president and chief executive officer of the Cookeville-Putnam County Chamber, asked businesses to post available job openings on its website.

“Our hearts are with the 433 Perdue employees in Monterey who will be impacted by the plant’s closure. This is a challenging time for these individuals and their families,” New said. “Perdue has been a valued partner to our community, and while words alone cannot ease their burden, we are committed to action. The Cookeville-Putnam County Chamber is working closely with local leaders and workforce officials to organize a career fair to connect affected employees with resources and job opportunities. Details will be announced soon.”

Perdue agrees to pay $4 million in restitution for child labor violations

The announcement by Perdue follows news earlier this week that the U.S. Department of Labor announced agreements with Perdue Farms Inc. and the temporary staffing agency Staff Management Solutions LLC to address child labor violations found during an investigation of Perdue’s poultry processing facility in Accomac, Virginia.

Investigators from the department’s Wage and Hour Division found that, as far back as 2020, Perdue Farms contracted with SMX to staff production-level jobs and that the two companies jointly employed children in hazardous occupations at the Accomac facility. The violations included children working with electric knives, heat-sealing presses, and in other hazardous conditions, as well as working hours prohibited under the Fair Labor Standards Act.

The investigation also determined Perdue Farms violated the FLSA’s “hot goods” provision, which prevents the shipment of goods produced under illegal child labor conditions.

“The Department of Labor has and will use all available tools to address child labor exploitation. Government, industry, workers, and advocates must come together to build solutions to the problem of exploitative child labor. The department’s work uncovering a systemic disregard for the safety of children resulted in meaningful commitments to stop and prevent child labor exploitation,” said Wage and Hour Administrator Jessica Looman.

Perdue Farms agreed to pay $4 million in restitution to affected children, organizations advocating for child labor victims, and additional work to prevent child labor exploitation. The company also agreed to pay a $150,000 civil monetary penalty. SMX agreed to a $125,000 penalty and is permanently enjoined from future FLSA child labor violations in meat processing and packing industries.

Perdue and SMX also agreed to implement enhanced compliance measures, including mandatory child labor training for managers and employees, stricter hiring practices, a designated compliance tip line, and increased reporting requirements.