Tyson: Improved employee benefits despite automation

Tyson Foods executives continue to monitor inflation and price increases and the disparity between improving worker benefits while also increasing automation.

(Tyson Foods)
(Tyson Foods)

Tyson Foods executives continue to monitor inflation and price increases and the disparity between improving worker benefits while also increasing automation. 

President and CEO Donnie King and other executives highlighted the construction of three new plants in Humboldt, Tenn.; Eagle Mountain, Utah and Thailand as well as four other plants that will begin operations at the end of this year. 

Inflation 

The 2022 second-quarter earnings call focused primarily on the impact of inflation which the company claims is caused by higher cost of resources, labor and transportation. 

“Every part of our business has been impacted by inflation. We experienced higher costs across our supply chain for all inputs from feed ingredients, live animals and other raw materials to cooking oils and basic supplies,” King said. “We’re also managing higher cost of labor and transportation due to robust demand, higher fuel costs and limited availability.”

According to Tyson executives, inflation increased approximately 25% which increased Tyson product prices by 15% compared to the same period last year. Due to this, the company’s sales increased 16% in the second quarter. 

Automation

Tyson is continuing to invest in automation and is commencing automation solutions like the debone automation program and pack-out robotics in several facilities. The company expects to save $400 million by the end of the year through transitioning to automation. 

Automation is also expected to eliminate about 3,000 jobs by 2024. 

Most sought-after place to work

Despite automation decreasing available jobs, Tyson is still making efforts to be the most sought-after place to work. Starting this summer, employees will have access to free education including masters, undergraduate and associate degrees, career certificates and classes in literacy and technology fundamentals. Tyson will cover 100% of costs including textbooks and other fees. 

The company is also investing $1 million into non-profit groups that provide legal and citizenship support for employees who want to become U.S. citizens. 

Tyson also opened seven on-site clinics that provide little-to no-cost care to employees and their families including preventive screenings, chronic condition coaching, mental health counseling,
 lab services and sick visits.

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