Incentivizing COVID-19 vaccination

JBS is willing to pay its workers to get vaccinated against COVID-19. It's an idea worth copying.

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(Andrea Gantz)
(Andrea Gantz)

JBS is willing to pay its workers to get vaccinated against COVID-19. It’s an idea worth copying. 

On January 21, 2021, JBS USA and Pilgrim’s Pride Corp. announced their intent to pay a $100 bonus to workers who receive a COVID-19 vaccination. 

“The new initiative is designed to encourage maximum participation in ... accelerated pandemic response efforts,” a statement from the company said. “And ensure that every JBS USA and Pilgrim’s team member who wants to get vaccinated can do so as soon as vaccines are made available.”

Pilgrim’s Pride, which employs 52,700, is the second largest vertically integrated chicken company in the U.S. and one of the largest in the world, according to WATT Global Media’s Top Broiler Companies data

Costs of the pandemic

Widespread vaccination could be a respite for processing plant operators who’ve faced myriad challenges in the past year due to the COVID-19 pandemic. New worker protection measures, health care costs as well as COVID-19 testing and on-site employee screening added new costs to the bottom line. Plants were also shuttered temporarily due to infections and sanitation needs. 

Pilgrim’s, according to its statement, already removed employees representing vulnerable populations from its workforce – about 11% of its staff – with full pay and benefits. It is covering costs associated with COVID-19 diagnosis and treatment for employees and their family members enrolled in the company’s health plan. Pilgrims makes free COVID-19 testing available to its employees, too. 

JBS USA and Pilgrim’s said they’ve invested more than $200 million in health and safety measures, more than $160 million in increased wages and bonuses and $50 million to support local communities.

Encouraging vaccination

At this point, a bonus to encourage vaccination seems a worthy – and potentially necessary – investment. In the statement, JBS USA’s Head of Human Resources Chris Gaddis said internal surveys indicate 60% to 90% workers are willing to get vaccinated.

“We recognize that some team members in our diverse workforce may have concerns or be less inclined to get vaccinated,” Gaddis said. 

In December 2020, the Pew Research Center said 60% of Americans said they would definitely or probably get a vaccine for the coronavirus, which is an increase from 51% in September 2020. However, 21% of Americans said they do not intend to get vaccinated and they are pretty certain more information will not change their mind on the issue. 

Monitoring the roll out

The question to pay a bonus may be moot if the vaccine continues to be scarce or if the broader rollout is unsuccessful, however. Drug makers, governments and public health agencies will need to coordinate to produce doses, get them where they need to be and vaccinate people. 

Currently, an estimated 150 million people in the U.S. are eligible for the vaccine and individual states are determining who goes first based on health conditions or occupations. An optimistic scenario would expand availability to the general population in spring or summer 2021. The vaccine should be administered for free, too. 

In a broader view, the sooner the pandemic is over in the U.S. and abroad, the better. A vaccine is not a panacea and there is no certainty when or if national and global society, business and daily life will return to what it was before March 2020. 

The poultry industry suffered a shock change in demand but adjusted both live production and processing to reflect new demand. 2021 is forecast to be a year of recovery for the industry as it looks to recover the previous year’s losses. However, a resumption of normalcy would be a boost financially and mentally for the industry. 

View our continuing coverage of the coronavirus/COVID-19 pandemic.

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