http://www.chron.com/disp/story.mpl/...n/3811514.html

April 22, 2006, 1:21AM

IFCO Systems official says firm is investigating allegations


By ARMANDO VILLAFRANCA
Copyright 2006 Houston Chronicle

A Houston-based pallet recycler raided by federal authorities seeking illegal workers denied charges that it built record profits on a work force of undocumented immigrants.

"We believed we had proper documentation. Unfortunately, now it appears some of those documents were fraudulent," said Michael Hachtman, vice president for IFCO Systems North America Inc. in Houston.

On Wednesday, U.S. Immigration and Customs Enforcement officers detained 1,187 employees at 40 IFCO operations in 26 states. Agents also arrested seven former and current IFCO managers and supervisors.

In Houston, officers arrested 67 workers at two plants in northeast and northwest Houston.

Officials released 53 of those employees, who must stay in touch with ICE. The remaining 14 are in custody.

Hachtman said IFCO's employment policy is designed to comply with state and federal regulations.

He also said IFCO required two forms of ID from the workers it hired.

But he was unable to explain how a quarter of its work force was detained for violating immigration laws if federal employment laws were strictly enforced.

Hachtman said midlevel managers work autonomously and have the discretion to make hiring decisions based on the information provided them by prospective employees.

He said workers are hired based on the documents provided.

Luisa Deason, ICE spokeswoman in Houston, said most employers must maintain I-9 forms that verify the employment eligibility of employees hired after Nov. 6, 1986.

In the course of the yearlong ICE investigation, she said IFCO was notified of irregularities pertaining to the eligibility of its work force and told to correct the problems.

Wednesday's raids were in part based on evidence found in the company's I-9 files.

Hachtman said IFCO is investigating the allegations and will implement any changes needed to ensure people are not hired using false or altered documents.

"We were shocked and disturbed by the allegations, and they're truly contrary to what IFCO stands for," Hachtman said.

Until the investigation is completed, he said IFCO managers arrested Wednesday will remain on temporary leave.

"We are committed to vigorously search for what happened and, if need be, change employment procedures to make sure this doesn't happen again," he said.

Hachtman said he has been in contact with some companies and that he knows of no one pulling out because of the raids.

However, the loss of so many workers has had an effect.

"It clearly has an impact on our operation," he said.

He said IFCO is trying to determine how many employees will be allowed to return to work. He said temporary workers will be hired to fill the gap.

Entry-level employees are hired at or near minimum wage, he said, but often earn much more based on production. He declined to detail how the company determines the piece rate for pallet assemblers, but he did say that a single worker can go through 400 to 600 pallets daily.

armando.villafranca@chron.com
It could happen? AHAHAHAHAHAHAHAH!!!