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Taco Bell® and YUM! Brands Offer to Assist Tomato Workers If They End Boycott Against Company

Taco Bell® and YUM! Brands Offer to Assist Tomato Workers If They End Boycott Against Company

Published 05-24-04

Submitted by Yum! Brands

LOUISVILLE, KY--Yum! Brands, Inc. (NYSE: YUM) today announced a proposed solution to end the three-year boycott lodged against its Taco Bell division by the Coalition of Immokalee Workers (CIW). The CIW represents tomato workers in the Immokalee region of Florida who work for a number of tomato grower companies, some of which supply Taco Bell. The CIW has been demanding that Taco Bell force its suppliers to pay CIW workers an additional penny per pound of tomatoes picked.

In its Annual Shareholder Meeting today, Yum! Brands Chairman and CEO, David C. Novak responded to a question from Lucas Benitez, the CIW leader, regarding whether the company would do more to assist the farm workers with their labor dispute and labor conditions. First, Mr. Novak attempted to "set the record straight" with actual facts to clarify the three-year long "misinformation campaign," by indicating:

  • Taco Bell actually buys the smallest amount of Florida tomatoes of any national fast food restaurant company (Taco Bell purchases only 10.9 million pounds of tomatoes from Florida annually, representing .7% of Florida's estimated annual 1.524 billion pound tomato crop). All of Taco Bell's national competitors and supermarkets buy significantly more tomatoes from Florida than Taco Bell;
  • Taco Bell actually is paying 11 cents more for a pound of tomatoes today than it did when the CIW started its boycott against the company in 2000. The actual cost increase far exceeds the 1-cent per pound increase the CIW has sought for three years.
Mr. Novak announced "if the CIW ended its boycott, the company is prepared to support an industry-wide solution, such as a penny a pound surcharge applied to all purchasers of Florida tomatoes, not just Taco Bell." Under this proposal, Taco Bell would be willing to be the first company to sign up for the surcharge, if it was applied universally to all purchasers. "We think that's only fair, since everyone who buys Florida tomatoes should be part of the solution and Taco Bell shouldn't be put in a competitive disadvantage," Novak said.

Additionally, Novak indicated the company "would be willing to help the CIW lobby for changes to the Florida labor laws, and help seek ways to improve the working conditions on the farms." He told Benitez and other CIW leaders attending the Shareholder Meeting that "first, you must stop using Taco Bell as a stalking horse in your labor dispute with the farmers, and you must end your boycott. If you do that, we pledge to give you our help."

Yum officials have met on numerous occasions with the CIW to explain the company's position over the last three years. The contents of those discussions remain confidential. "We alone simply don't have the clout they think we do with tomato growers in Florida because we buy such an insignificant amount of the total Florida tomato crop. If the industry were to work together, we believe the CIW would more likely obtain its goals," said Jonathan Blum, Yum! Brands senior vice president. "While we are willing to assist the CIW, we are first calling on them to end their boycott against Taco Bell so we can establish a working partnership and involve the whole industry to work together to effect the changes they seek on the Florida tomato farms."

The CIW has yet to respond to the Yum! Brands proposal. "We'll continue to talk with the CIW and try to find an industry-wide solution to their issue, and in exchange, we hope they'll end their boycott unfairly focused on Taco Bell," Blum added.

Taco Bell Corp., based in Irvine, California, is a subsidiary of Yum! Brands, Inc. and the nation's leading Mexican-style quick service restaurant chain serving tacos, burritos, signature Quesadillas, Border Bowls®, nachos and other specialty items. Taco Bell® serves more than 35 million consumers each week in more than 6,500 restaurants in the U.S.

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Yum! Brands

Yum! Brands

Yum! Brands, Inc., based in Louisville, Kentucky, has over 54,000 restaurants in more than 155 countries and territories, operating the Company’s brands – KFC, Pizza Hut and Taco Bell – global leaders of the chicken, pizza and Mexican-style food categories. The Company’s family of brands also includes The Habit Burger Grill, a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. Yum! Brands was named to the 2021 Dow Jones Sustainability Index North America and was ranked on Newsweek’s list of 2021 America’s Most Responsible Companies. In 2022, Yum! Brands was named to 3BL Media’s 100 Best Corporate Citizens.

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