Tyson Foods Inc., the world’s largest meat
producer, has until March 3, 2008, to prepare its defense against allegations of
hiring undocumented workers to depress wages at eight of its chicken processing
plants.
Chattanooga, Tennessee, set the trial date on Monday,
January 29.
A lot appears to be riding
on Trollinger v. Tyson Foods Inc., which gained class-action status in the
fall.
“Depending on how things
turn out, this case may do more in deterring the hiring of undocumented workers
than any act that Congress has passed in 20 years,” says James Hall, a partner
at the Los Angeles law firm of Barlow, Kobata & Denis.
The Tyson case will be of
interest to employers of all sizes because the meat producer will likely rely
on a defense that many companies invoke when charged with hiring illegal
workers: They weren’t aware of it.
Companies often claim being
unaware of employing illegal workers because external labor recruiters were
responsible for the hirings. In addition, employers cite inefficiencies within
the federal government’s Basic Pilot employment verification program for their
inability to determine the authenticity of a job candidate’s documents. About
12,000 companies have signed up for the Basic Pilot program, which was created
in 1997.
“Those excuses are not
going to work,” says Howard Foster, an attorney for the plaintiffs and a
shareholder at Johnson & Bell in Chicago. Foster contends companies can do more
than rely on Basic Pilot and that there are other signs that can be used to
determine whether a job candidate might be using falsified documents, such as a
lack of proficiency in English.
“We believe the plaintiffs’
claims are simply without merit and are largely based on federal charges Tyson
has already successfully defended,” says Gary Mickelson, a spokesman for
Springdale, Arkansas-based Tyson. “A lot can happen in the next year; the case
may or may not even get to trial.”
Foster will argue that
Tyson is in violation of the Racketeer Influenced and Corrupt Organizations Act,
or RICO. He has already had some success in this arena. Last year, the Zirkle
Fruit Co., a fruit grower in Selah, Washington, settled a class-action suit for
$1.3 million.
That case was brought by a
group of legal workers who claimed that Zirkle and its recruitment contractor,
Selective Employment Agency, had hired undocumented employees to maintain
artificially depressed wages.
The financial blow to Tyson
could be severe, since the suit represents 35,000 workers seeking back pay for
depressed wages resulting from the hiring of undocumented workers.
“These class-action suits
can be costly,” Hall says. “Tyson could wind up having to pay
millions.”
Foster has said that the
wages were about 30 percent below the level of salaries paid to unskilled
workers by other companies in the vicinity of 15 Tyson plants. The eight Tyson
plants named in the lawsuit are Shelbyville and Corydon, Indiana; Gadsden, Blountsville and Ashland, Alabama;
Sedalia, Missouri; Center, Texas;
and Glen Allen, Virginia.
“All elements of the
immigration issue must be addressed, or none of them will be resolved,” says
Dave Ray, a spokesman for the American Meat Institute in Washington. He declined
to comment on Tyson, a member of the organization, because the case is still
pending.
—Gina Ruiz