CA: SK Foods target of immigration lawsuit
SK Foods target of immigration lawsuit
Firm used undocumented workers, suit states
By MARIE VASARI
Herald Staff Writer
Article Last Updated: 04/19/2008 01:28:51 AM PDT
SK Foods, the Monterey-based tomato processor under federal investigation, systematically hired undocumented immigrants as a source of cheap labor, depressing wages for the remaining work force, according to a lawsuit filed at the U.S. District Court in Fresno against the company.
The lawsuit, brought on behalf of former company employee Robin Brewer, was filed at the U.S. District Court in Fresno in late 2006 and named SK Foods President and CEO Scott Salyer as the defendant. The suit, pursuant to the Racketeer Influenced and Corrupt Organizations Act, or RICO, alleged that the company knowingly hired undocumented workers, thereby depressing the wages of the plaintiff and other legal workers.
The lead attorney on that suit, Nicholas Wagner of Fresno, was not available for comment Friday.
Early Wednesday, agents from the Federal Bureau of Investigation and the Internal Revenue Service executed a search warrant at the company's Monterey headquarters, but the agencies remained mum Friday about what they hoped to find. It isn't known whether the raid is connected to the lawsuit.
Lisa Crist, SK Foods vice president of human resources and administration, said Friday that the company is cooperating with investigators.
"At this point, it's still very preliminary," said Crist. "We're still reviewing a lot of the documents trying to determine what was taken from us on Wednesday."
Neither the FBI nor the IRS had made clear why they were investigating the company,
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said Crist. "We are coordinating with the FBI, but haven't really had much feedback from them at this point."
Records and data were taken from the company's Monterey headquarters, said Crist, and warrants were executed at both of the company's processing locations in California — in Williams, north of Sacramento, and in Lemoore, south of Fresno.
SK Foods employs 300 full-time employees at the three California locations, with the numbers swelling seasonally to 1,200 employees at the height of the summer packing season.
The warrant search caught company officials and employees by surprise, but Crist said the company continued its operations without interruption.
"We are still committed to our success, our operations and our products and customers," said Crist. "We are definitely standing behind our products and our customers and our service each and every day."
She declined to discuss the status of any lawsuits involving SK Foods, citing company policy against discussing past or present litigation.
"We are going to take whatever means necessary to defend our company, our integrity and our products," Crist said.
SK Foods issued a brief statement Wednesday, stating that "the events of this morning have nothing to do with food quality and food safety issues."
The statement cited the company's investment in its employees and their training.
A second statement, issued on the company's Web site, was directed to employees, reassuring them that the company was still in business and that operations would resume as usual after the federal agents' search and seizure.
Marie Vasari can be reached at 646-4478 or mvasari@montereyherald.com.
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