Tyson Suit Dropped by Tennessee Judge
by July 22, 2002 12:00 am 64 views
United States District Court Judge R. Allan Edgar of Tennessee’s Eastern District in Winchester on July 16 dismissed a lawsuit by former workers of Tyson Foods Inc.
Four former employees of Tyson Foods, accusing Tyson Foods of depressing the company’s wage structure by hiring illegal immigrants at much lower wages, filed the suit in April. But in his seven-page judgment, Judge Edgar said, “For example, plaintiffs wages could have been affected by those other employers paid, the availability of workers, the profitability of the defendant’s business and other factors that influence any labor market.”
Ken Kimbro, senior vice-president of human resources for Tyson Foods, said in a company statement: “We are extremely gratified by the court’s decision in this matter. Our company works hard to hire responsibly, to ensure our team members are legally documented and are fairly compensated.”
The suit had followed U.S. Justice Department charges in December that Tyson Foods had conspired to hire illegal immigrants, smuggled into the country, to work at its plants.
Tyson officials vehemently denied the corporate conspiracy charges. The Justice Department indicted two Tyson executives and four former managers following a three-year undercover investigation.
The government had claimed Tyson Foods hired the illegal immigrants as a way to boost company profits.
The employee suit had alleged that Tyson Foods had violated the Racketeer Influenced and Corrupt Organizations Act by employing illegal immigrants at 15 facilities. It also said Tyson Foods relied on a network of recruiters and temporary employment services for low-wage, unskilled labor. It also said the company even provided transportation for these workers to the Tyson Foods plants.
The plaintiffs’ lawyer, Howard Foster, said he planned to appeal Judge Edgar’s decision.
Tyson Foods shares were trading at $13.22 July 18, up 22 cents from close of the previous day’s market. Tyson Foods will release its third-quarter earnings report July 29.