CHICAGO (Reuters) – JBS USA, one in all greatest U.S. meatpackers, is creating an inner firm to scrub a few of its processing vegetation after a personal sanitation agency it employed was accused of hiring kids for harmful work.

The launch exhibits the complexities concerned in changing Packers Sanitation Companies Inc (PSSI), a agency that contracts to scrub slaughterhouses. The U.S. authorities in February mentioned PSSI paid $1.5 million in penalties for using greater than 100 underage youngsters at meat vegetation throughout eight states.

The brand new firm, JBS Sanitation, will “instantly start the transition” to cleansing 10 JBS USA services, which produce beef and pork, in line with a press release issued this week. JBS Sanitation may even do in-house cleansing for Pilgrim’s Delight (NASDAQ:) Corp and create “a whole bunch of union jobs,” the assertion mentioned.

JBS USA is the North American unit of Brazil’s JBS SA (OTC:), which additionally owns most of Pilgrim’s Delight.

JBS USA didn’t instantly reply to questions in regards to the prices of the launch on Thursday.

America’s largest meatpacking union, the United Meals and Business Employees Worldwide Union, mentioned it’s working with JBS USA on in-house sanitation.

PSSI has mentioned it has a coverage towards using minors.

JBS USA beforehand mentioned it terminated contracts with PSSI at “quite a few” services, together with three vegetation the place alleged child-labor violations occurred. Third-party corporations that meet employment verification requirements will proceed to scrub some JBS USA and Pilgrim’s Delight vegetation, in line with the assertion.

Meatpacking rival Cargill Inc mentioned it was chopping all ties with PSSI however the course of will take months.