McDonald's to Pay More for Tomatoes in Bid to Boost Worker Wages
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McDonald's Corp. (MCD) has agreed to pay a penny more per pound for its Florida-grown tomatoes in an effort to boost wages for the migrant workers who harvest them.
The announcement was made Monday by a Florida farmworker advocacy rights group and the nation's biggest fast-food restaurant chain. Florida pickers harvest about 90 percent of the nation's domestic winter tomato supply.
The deal involves payments for grape tomatoes that go on McDonald's salads.
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McDonald's USA spokesman William Whitman said the increase will not be passed along in higher prices for consumers.
Under the agreement, Oak Brook, Ill.-based McDonald's will require its suppliers to follow a workplace code of conduct that the workers would help create. A third party will verify that farmworkers who pick McDonald's tomatoes will receive the increase being paid for the produce by McDonald's.
Farm workers are paid about 40 cents per 32-pound bucket, their representatives say. The extra penny a pound would boost that to about 72 cents a bucket.
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The Coalition of Immokalee Workers, representing the migrant workers who harvest Florida tomatoes, had targeted McDonald's in 2005.
The coalition had previously won similar concessions from after a four-year campaign against Taco Bell, which is part of Yum Brands Inc. (YUMM).