Greenhouse grower agrees to compensate terminated workers

Greenhouse vegetable grower Eurofresh Farms, in Willcox, Ariz., which emerged from bankruptcy protection in November, has reached an agreement with the U.S. Dept. of Labor's Wage and Hour Div. to pay $937,460 in back wages and interest to 587 U.S. workers following an investigation into company practices related to hiring temporary, non-immigrant foreign ag workers.
The Labor Dept. investigation determined that Eurofresh violated several provisions of the Immigration Reform and Control Act designed to protect the jobs of corresponding U.S. workers when the company hired foreign ag workers under the H-2A temporary worker program. The agreement settles claims for back wages and interest that arose from the Labor Dept.'s investigation and follows proceedings resulting from a Chapter 11 bankruptcy filing by Eurofresh last April.
Eurofresh has already paid $550,000 to the Labor Dept. after establishing the effective date for its bankruptcy plan as Nov. 18. The balance will be paid in two subsequent payments due in September 2010 and 2011, bringing the total amount, including a $12,500 civil money penalty, to $949,960. This total includes $245,482 which is equal to 5% of the $4,909,644 unsecured back wages determined owed during the Labor Dept's investigation. This is the same percentage Eurofresh will pay all unsecured creditors under its Chapter 11 reorganization plan. The Labor Dept. will distribute back wage payments to eligible workers.
The violations cited include illegally terminating 527 U.S. workers and failing to notify the local employment office of the action; failing to provide pay or work for three-quarters of the required time period to 45 U.S. workers; failing to offer housing to 80 U.S. workers; and making illegal paycheck deductions from 82 U.S. workers. The company also failed to provide more than 800 U.S. workers with copies of the H-2A work contract or job order which provides workers with the terms and conditions of their employment.