Tyson Busted for Exploiting Illegal Immigrants in Poultry Factories

U.S. charges Tyson Foods with immigrant smuggling
Wednesday December 19, 5:35 PM EST

By Jim Vicini

WASHINGTON, Dec 19 (Reuters) - Tyson Foods Inc. (TSN), the world's
largest poultry processor, two of the firm's executives and four former
managers have been indicted on charges of conspiracy to smuggle illegal
immigrants to work at its U.S. plants as a way to boost profits, the
Justice Department said on Wednesday.

The 36-count indictment, unsealed in federal court in Tennessee, stemmed
from a 2 1/2 year undercover investigation by the Immigration and
Naturalization Service (INS) into Tyson's business practices, the
department said.

In a statement, the company denied the charges, with Tyson Senior
Vice President of Human Resources Ken Kimbro saying, "The prosecutor's
claim in this indictment of a corporate conspiracy is absolutely false."

Kimbro also said the charges are "limited to a few managers who were
acting outside of company policy at five of our 57 poultry processing
plants." Tyson said four of the six managers named in the indictment had
been fired and the other two are on administrative leave.

The Justice Department said 15 Tyson plants in nine states have been
implicated in a conspiracy in which workers allegedly were transported
from Mexico across the U.S. border.

According to the indictment, the Springdale, Arkansas-based company
cultivated a corporate culture in which the hiring of illegal immigrant
workers was condoned to meet production goals and to cut costs to maximize
profits, the department said. The alleged scheme dated back to 1994, the
indictment stated.

EXPLOITING IMMIGRANTS

"The Department of Justice is committed to vigorously investigating
and prosecuting companies or individuals who exploit immigrants and
violate our nation's immigration laws. The bottom line on the corporate
balance sheet is no excuse for criminal conduct," Assistant Attorney
General Michael Chertoff said in a statement.

The INS charged that Tyson preferred hiring illegal immigrants because
they were forced to be more productive and were less likely to complain to
management about inhumane working conditions and lack of benefits.

Tyson's Kimbro said, "We treat all team members fairly and with dignity.
We're very proud of our diverse work force and encourage every team member
to express freely any concerns or questions they have. We find it
offensive that the prosecutor suggests that we have treated any team
member in a 'less humane' or a discriminatory fashion. This is simply not
true."

The indictment named two Tyson executives, Robert Hash, vice president of
the retail fresh division, and Gerald Lankford, former human resources
manager for the same division, the department said.

It said the indictment also charged four former managers: Keith Snyder,
complex manager in Noel, Missouri; Truley Ponder, former complex manager
in Shelbyville, Tennessee; Spencer Mabe, former plant manager in
Shelbyville; and Jimmy Rowland, the former complex personnel manager in
Shelbyville.

The indictment charged that between 1994 and June 2001 Tyson hired
illegal immigrants from Mexico and listed the costs of the hiring as
"recruitment" expenses.

The company was accused of purchasing false documents such as
Social Security cards. Prosecutors said Tyson used an INS program that
seeks to ensure that all employees are in the United States legally to
"foster the appearance of compliance with the law" and to "keep the INS
from conducting raids" to identify the illegal immigrants.

TYSON STOCK FALLS

Tyson's shares plunged on the news, closing down 73 cents to $10.86 on
the New York Stock Exchange. Before the charges were disclosed, the stock
had been trading higher for the day.

Christine McCracken, food and agribusiness industry analyst at Midwest
Research Institute, said the accusations against Tyson are limited to a
few plants and would not spur wide changes in hiring practices for the
industry.

"I think they were probably looking for somebody to make an example of,
and Tyson probably fit that," she said.

Tyson has seen earnings rise of late, with the chicken business starting
to improve after two tough years. Tyson also improved its product line
when it completed its $2.9 billion purchase of beef processor IBP in
September.

Tyson previously encountered legal problems when top executives at the
firm were accused of providing illegal gratuities to former U.S.
Agriculture Secretary Mike Espy and to Espy's girlfriend.

Tyson agreed to pay a $6 million fine in 1998 to settle allegations that
it provided thousands of dollars in gifts, including football tickets,
plane fares and limousine rentals, to Espy while he was office in the
Clinton administration.

A federal jury acquitted Espy on all charges of improperly accepting
gifts and travel from firms he regulated. Espy resigned in 1994 amid the
charges.

©2001 Reuters