Our culture of respect and team member success is driven from the top-down and demonstrated by our managers' availability to team members who want to discuss challenges or opportunities. All management policies and programs are reviewed annually and specific team member issues are reviewed weekly or as necessary. To measure the success of our policies and programs, each week Pilgrim's evaluates indicators including health and safety, turnover, absenteeism and overtime. This allows us to make immediate adjustments if necessary and ensure team member health, safety and working conditions are upheld across all facilities according to Pilgrim's high standards.

In addition to operating in compliance with labor and human rights laws and mandates, we adhere to strict internal policies that provide additional guidance. Pilgrim's has a zero-tolerance policy on child and forced labor. Additionally, in the U.S. we do not use prison labor at our facilities. Our background check policy supports workforce re-entry for persons with a criminal record, dependent on factors including potential risks and liabilities, the “nature and gravity” of the individual's criminal offense or conduct and the nature of the duties and essential function of the position sought. Pilgrim's does not permit degrading conditions in the workplace that could put our team members' health or lives at risk.

We uphold applicable wage and hour laws, such as minimum wage and overtime compensation, and legally mandated benefits. In the U.S., we conduct a competitive wage analysis twice each year for hourly team members and once a year for salaried team members. Pay agreements are adjusted as necessary based on these analyses. We also respect our team members' rights of association, of joining labor unions and of collective bargaining.

In 2022, 57% of our team members working in the U.S. and Puerto Rico, 70% in Mexico and 61% in Europe were covered by collective bargaining agreements.

Pilgrim's Code of Conduct and Ethics includes behavioral guidelines and standards for each of the company's major risk areas, including: team member safety, food safety, environmental compliance, animal welfare, corporate ethics, workplace conduct, taxation and finance. All team members, regardless of position or title, receive annual in-person or online training on the Code of Conduct and Ethics and new team members receive an ethics handbook at orientation. Managers are responsible for enforcing the Code in their divisions, with corrective actions including coaching, written warnings and, if necessary, termination of employment. Serious violations such as theft, bribery, kickbacks and falsification of documents can result in immediate termination.

Additionally, harassment of employees by supervisors or co-workers is a violation of federal law and company policy. Pilgrim's policy extends to all forms of harassment, including, but not limited to sex-based harassment and retaliation against individuals who report any form of harassment in our workplace. We also provide all employees with annual harassment training.

Each Pilgrim's facility has anonymous and non-anonymous ways to report grievances and potential wrongdoing. We have a "zero retaliation policy" that mandates team members can bring their concerns directly to management without retaliation or fear of retaliation. With our open door policy, full and part-time team members are encouraged to bring issues to supervisors, Human Resources or the Ethics and Compliance department that they feel are impacting their performance or working environment.

The Pilgrim's Ethics Line is available 24/7 to all team members in every country where we operate, and is provided in 18 languages to accommodate our diverse workforce. Pilgrim's team members can securely and confidentially report concerns, unethical behavior or policy violations through a toll-free phone number and online platform. In 2022, approximately 1,486 grievances were submitted to the Ethics Line, of which 100% were investigated and 99.6% were closed by appropriate personnel, and administrative action was taken where warranted. The remaining 0.4% of cases were closed in 2023.

All team members are introduced to the open door policy and Ethics Line during new-hire orientation and all new managers discuss the policy and related procedures with senior management when they assume their roles. In addition, Pilgrim's launched its "Speak Up Campaign" designed to encourage and promote use of the Ethics Line and other reporting avenues. Using data from these reporting mechanisms, we monitor overall team member perceptions.

Additionally, to maintain a culture of trust and respect, we offer opportunities for our team members to provide and receive feedback during roundtables, town hall meetings and other engagements, while reminding of our open door policy. Team members from each department are invited to meet with management to ask questions, express concerns and present solutions. We address action items within a reasonable time frame and provide feedback to any team members who raised concerns.