Labor supplier sues grower over use of illegal aliens
Labor supplier sues grower over use of illegal aliens
Global Horizons, a supplier of foreign guest workers, has sued a Delano, CA-based blueberry grower and two labor contractors, claiming that the use of illegal immigrants has resulted in unfair competition.
Global Horizons, through its agri-labor division, operates under the H-2A provisions of the U.S. Department of Labor, typically bringing guest workers to the United States from Thailand to work in agriculture and other industrial sectors. It has had some success most notably in Washington and Hawaii, but has not gained much of a foothold in California. The company claims that it signed a contract with Munger Bros. in Delano in February to supply the grower with as many as 600 laborers during the peak of the season. After supplying the firm with some workers for several weeks, the suit claims that Munger terminated the contract because the workers did not meet the picking standards required by the grower. The suit alleges, however, that the contract was terminated because Munger was able to hire illegal immigrants from other farm labor contractors at wages much less than the $14 per hour in its contract with Agri-Labor.
Global Horizons has sued, claiming breach of contract as well as unfair competition using established antitrust law.
David Klehm, the lawyer for Global Horizons, was quoted in several news stories stating that similar lawsuits are being readied against other employers that knowingly hire illegal aliens. He said that research has shown that this is a novel approach to attempt to apply antitrust laws.
Theodore Hoppe, the attorney representing Munger, told The Produce News Wednesday, Aug. 23, that this was a fairly straightforward breech of contract dispute. He said that Global Horizons warranted in the contract that it had specialized workers who could perform the blueberry picking operations at a rate of speed much greater than the average worker. Mr. Hoppe said that when the foreign guest workers did not live up to the terms of the contract, Munger Bros. tried to amend the contract and put the workers and Global Horizons on a performance basis. Global Horizons refused, and so the contract was terminated. Munger then hired local labor contractors who hired workers who did perform to expectations.
"Those local labor contractors have assured us that they have I-9s for all of their workers and they were legally able to do the work," Mr. Hoppe said.
Western Growers Executive Vice President Jasper Hempel said that the case between Global Horizons and Munger Bros. appears to be a contract dispute on which he would not specifically comment. However, on a larger scale, he said that this case points to the need for comprehensive immigration reform with a viable guest worker program. He said that until the law is changed, all employers are subject to frivolous or legitimate lawsuits based on similar circumstances. He said that Western Growers advises its members to follow proper procedures when hiring workers, but that does not protect against hiring illegal aliens.
Mr. Hempel explained that the law requires employers to accept on their face any documents presented by a worker as legitimate. If an employer questions a document, he or she can be charged with discrimination.
"It is the ultimate Catch 22," Mr. Hempel said referring to potential lawsuits that could cost an employer for hiring documented workers.
It is widely know and generally accepted that many of the documented immigrant workers that toil in the fields in the United States are falsely documented, he said. Growers are required by discrimination laws to hire these workers. It is truly an unwinnable situation if they are then sued for unfair competition, according to the WGA executive.
A telephone call to Global Horizons was not returned by presstime.
Global Horizons, through its agri-labor division, operates under the H-2A provisions of the U.S. Department of Labor, typically bringing guest workers to the United States from Thailand to work in agriculture and other industrial sectors. It has had some success most notably in Washington and Hawaii, but has not gained much of a foothold in California. The company claims that it signed a contract with Munger Bros. in Delano in February to supply the grower with as many as 600 laborers during the peak of the season. After supplying the firm with some workers for several weeks, the suit claims that Munger terminated the contract because the workers did not meet the picking standards required by the grower. The suit alleges, however, that the contract was terminated because Munger was able to hire illegal immigrants from other farm labor contractors at wages much less than the $14 per hour in its contract with Agri-Labor.
Global Horizons has sued, claiming breach of contract as well as unfair competition using established antitrust law.
David Klehm, the lawyer for Global Horizons, was quoted in several news stories stating that similar lawsuits are being readied against other employers that knowingly hire illegal aliens. He said that research has shown that this is a novel approach to attempt to apply antitrust laws.
Theodore Hoppe, the attorney representing Munger, told The Produce News Wednesday, Aug. 23, that this was a fairly straightforward breech of contract dispute. He said that Global Horizons warranted in the contract that it had specialized workers who could perform the blueberry picking operations at a rate of speed much greater than the average worker. Mr. Hoppe said that when the foreign guest workers did not live up to the terms of the contract, Munger Bros. tried to amend the contract and put the workers and Global Horizons on a performance basis. Global Horizons refused, and so the contract was terminated. Munger then hired local labor contractors who hired workers who did perform to expectations.
"Those local labor contractors have assured us that they have I-9s for all of their workers and they were legally able to do the work," Mr. Hoppe said.
Western Growers Executive Vice President Jasper Hempel said that the case between Global Horizons and Munger Bros. appears to be a contract dispute on which he would not specifically comment. However, on a larger scale, he said that this case points to the need for comprehensive immigration reform with a viable guest worker program. He said that until the law is changed, all employers are subject to frivolous or legitimate lawsuits based on similar circumstances. He said that Western Growers advises its members to follow proper procedures when hiring workers, but that does not protect against hiring illegal aliens.
Mr. Hempel explained that the law requires employers to accept on their face any documents presented by a worker as legitimate. If an employer questions a document, he or she can be charged with discrimination.
"It is the ultimate Catch 22," Mr. Hempel said referring to potential lawsuits that could cost an employer for hiring documented workers.
It is widely know and generally accepted that many of the documented immigrant workers that toil in the fields in the United States are falsely documented, he said. Growers are required by discrimination laws to hire these workers. It is truly an unwinnable situation if they are then sued for unfair competition, according to the WGA executive.
A telephone call to Global Horizons was not returned by presstime.
