Thread: IA-Troubled Agriprocessors appoints new CEO

Troubled Agriprocessors appoints new CEO
© 2008 The Associated Press
Sept. 18, 2008, 1:51PM
DES MOINES, Iowa — Troubled meatpacking company Agriprocessors has hired a New York attorney to be its new chief executive officer.

Bernard Feldman will take the helm of the nation's largest kosher meatpacking operation at a time when the company is fighting thousands of state charges alleging child labor law violations at its plant in Postville, Iowa.

Feldman specializes in the reorganization of companies.

A federal raid May 12 led to the arrest of 389 people on immigration charges. Company officials say Feldman's first task is restoring the plant to pre-May 12 production levels.



http://www.chron.com/disp/story.mpl/ap/ ... 09379.html

I hope this guy is a good attorney and not some cover up guy. I hope that this case is sending a message and shivers down the spines of unethical business owners.

Agriprocessors names new CEO
E-mail article
Share on Facebook
Digg this
Tell the Editors
What bloggers
are saying

Published: 09/18/2008


Agriprocessors has named a New York attorney as its new chief executive officer.

The hiring of Bernard Feldman of Long Island as the kosher meat producer's new chief executive keeps the company in the good graces of the Orthodox Union, which said last week it would withdraw its kosher supervision if new management wasn't hired within two weeks.

In an interview Thursday with JTA, Feldman said he had no experience in the meat industry, but was qualified for the position due to his "extensive experience in reorganizations and assisting companies who are experiencing financial difficulties."

Feldman said he would spend "a major part" of his time at the Agriprocessors plant in Postville, Iowa, which was the site of a massive federal immigration raid on May 12, but would retain his New York residency.

"II believe that Agriprocessors serves a vital function to the Orthodox community and others who are in need of acquiring glatt kosher food," Feldman said, explaining why he had decided to take the position.

The Orthodox Union threat by the Orthodox Union, the best known of the agencies providing kosher certification to Agriprocessors, came after a criminal complaint was filed against five company officials on more than 9,000 counts of child labor violations. Among those named was owner Aaron Rubashkin and his son Sholom, the former manager of the Postville plant.

On Thursday, two of the five individuals named in the complaint -- both employees in the company's human resources department -- were indicted in U.S. District Court. Both face jail time if convicted.

Rabbi Menachem Genack, the O.U.'s head of kosher supervision, told JTA Thursday that he had met Sunday night with Feldman and was pleased with the decision, calling it "credible and wise."

"We will continue to monitor the situation," Genack said, "but we're pleased by the turn of events."

In the JTA interview, Feldman enumerated several goals he intends to pursue, including restoring Agriprocessors to "prominence," ensuring good record keeping, complying with government regulations and resupplying the company with "qualified productive employees." Feldman said he would stay "on board" as long as it takes to achieve those goals.




http://www.jta.org/cgi-bin/iowa/breaking/110441.html

Meatpacker picks N.Y. lawyer as CEO
By TONY LEYS • tleys@dmreg.com • September 19, 2008

The embattled Agriprocessors meatpacking plant has hired a New York lawyer as its new chief executive officer.

The Postville company announced Thursday that it will be led by Bernard S. Feldman, an attorney who specializes in reorganizing companies.

Feldman, 63, has previously done legal work for the Rubashkin family, which owns the plant. But Feldman said Thursday night that he has been promised independence to make changes at the plant.

The announcement was made nine days after the Orthodox Union, the nation's largest kosher-certification agency, publicly threatened to withdraw its approval of Agriprocessors' products unless the company quickly hired a new leader.


The plant was the country's largest producer of kosher meat until May 12, when federal immigration agents raided it. Hundreds of workers were arrested and accused of being illegal immigrants. The company has contended that it didn't realize the workers were illegal.

Agriprocessors has struggled since the raid to restore its work force and production. Last week, the Iowa attorney general charged owner Aaron Rubashkin, his son Sholom and three human-resources managers with illegally using children as workers. Two of the human-resources managers also face federal charges of helping employees obtain false documents. The five have denied the allegations, but the charges sparked the Orthodox Union's demand for new leadership at the company.

Agriprocessors had said for months that it would hire a chief executive officer, a position that had not existed there before. Its announcement Thursday said Feldman specializes in corporate law. "Mr. Feldman's first task will be to restore production at the plant to the level of pre-May 12," Aaron Rubashkin said in a press release. The announcement added that Feldman would concentrate on making sure the company complies with government agencies that monitor food safety and the treatment of workers and livestock.

Feldman said in an interview that he has not decided what role will be played by Sholom Rubashkin, who ran the plant for years and has continued to work there since the raid. Feldman expressed admiration for the family, however. "There are no individuals who have more knowledge of this plant than the Rubashkins," he said.

Rabbi Menachem Genack, the Orthodox Union's chief executive officer, said Thursday he is satisfied with the choice of Feldman.

He said he met the new chief executive officer this week, and he was impressed with Feldman's intelligence and knowledge of how to fix troubled corporations. He said he was not bothered by the fact that Feldman previously did legal work for the Rubashkin family.

"You have to bring in somebody who's independent but who the owner has confidence in," Genack said.

Feldman said the Rubashkins will continue to own the plant, although he said the company has been talking to unidentified parties about investing in it.

Feldman said his family has some retail experience in selling kosher meat. He acknowledged that he has no direct experience running a packing plant, but he said very few people have helped run a kosher operation. He asked observers to withhold judgment on his appointment until he has time to make changes in the company.

Feldman also said he would be open to the idea of having a union represent the plant's employees, but would not want that union to be the United Food and Commercial Workers. In the past, the company has fought attempts by the UFCW to organize workers there. "Quite candidly, I view them as not friendly to the company," Feldman said. The union, which has been a sharp critic of Agriprocessors, declined to comment beyond noting Feldman's previous ties to the Rubashkins.

A Minnesota rabbi who has criticized Agriprocessors in the past said he was unsure what to make of Thursday's news. Morris Allen, who is a rabbi in the Conservative branch of Judaism, said Feldman will need the freedom to make dramatic changes in the company's operations. "I don't believe it can be simply a matter of rearranging chairs on the deck of a sinking ship," he said.

Allen said he hopes Agriprocessors will participate in an effort he is leading to ensure that workers in the kosher-food industry are treated ethically.

Postville Mayor Robert Penrod, who has pushed to keep the plant open as the town's major employer, said he was heartened to hear Thursday's news. He said he didn't know Feldman, but he believes the company's willingness to hire a new leader is a good sign. "I think it's a move in the right direction."

The Rev. Paul Ouderkirk, a Postville priest who has spoken out on behalf of the plant's workers, said he had mixed emotions about word of a new chief executive officer. He said Agriprocessors needed a change of leadership, but he wishes the new CEO was from outside the company. "As long as this man has connections to the family before he came here, my optimism is fairly low," Ouderkirk said.

Gov. Chet Culver's spokesman released the following response to Thursday's news: "Gov. Culver fully expects Agriprocessors to take the high road to economic development and to comply with all applicable state and federal laws."


http://www.desmoinesregister.com/apps/p ... /1001/NEWS