Associated Press

May 25, 2007

3:55 a.m. EST

Tomato growers reject McDonald's deal to pay farmworkers more

The largest group of Florida tomato growers on Thursday rejected a recent deal between McDonald's Corp. and an advocacy group that would pay field workers more for the fruit.

The FloridaTomato Growers Exchange said it was advised by several attorneys that participating in the deal could leave them open to racketeering and antitrust lawsuits.

"Involvement in such a potentially unlawful sales enterprise with unaffiliated third parties is not an option for any American farmer and should not be an option for restaurant and retail companies," according to a statement by the grower's group.

The move leaves in question whether McDonald's will continue to buy from Florida tomato growers.

"I would love to continue to supply McDonald's, they're a great company. I'm proud to be associated with them. They've done lots of great things around the world, and they pay their bills," said Jay Taylor, head of Fulton & Taylor Farms, one of the fast-food giant's largest tomato suppliers in Florida.

But Taylor, a member of the exchange, said he was concerned about opening his company to lawsuits.

"I'm not going to be party to any agreement with a labor organizing group, negotiated without my involvement," he said.

McDonald's said in a statement that the company stood by its agreement with the Coalition of Immokalee Workers advocacy group.

"We believe we're doing the right thing," the statement said. "We're reviewing a letter from the Florida growers. We're committed to working with suppliers and workers to improve working and living conditions."

The coalition maintains tomato pickers are generally paid about 45 cents per 32-pound bucket. The extra penny a pound would boost their pay to about 77 cents a bucket. The Tomato Exchange puts the number closer to 50 cents per bucket, with average hourly wages at $12.48 per hour.

Coalition leader Lucas Benitez said growers around the world have signed on to fair trade production, whereby customers pay more for produce or coffee and called the Floridaagriculture industry "out of step."

"A true farmer would be glad to see his workers earn more money, especially when he is not paying for it," Benitez said.

Some Florida growers have said they will likely pay in the end because fast-food and other companies will buy their tomatoes elsewhere.

The coalition reached the deal with McDonald's last year. It mirrored a similar agreement in 2005 between the group and Taco Bell owner Yum! Brands. The companies agreed to pay a penny more per pound of tomatoes picked and have an outside entity verify the money was passed on to workers.

"We are committed to our agreement with the Coalition of Immokalee Workers to improve the wages and living conditions of Florida tomato pickers, and encourage other restaurant companies to follow our lead," said Rob Poetsch of Taco Bell.