Meatpacker fined nearly $10m

Iowa City - A kosher meatpacking plant that was the site of one of the nation's largest immigration raids was fined nearly $10m by the state on Wednesday over accusations that it violated state labour laws.

Iowa Labour Commissioner Dave Neil assessed the civil penalties against Agriprocessors in Postville for what he called repeated violations of Iowa's wage laws from January 2006 to June 2008.

Iowa Workforce Development, the state's labour agency, spent months before and after the May 12 raid examining internal company documents, said agency spokesperson Kerry Koonce. Documents included time sheets, payroll and wage stubs, she said.

In September, the plant owner and managers were charged with 9 311 misdemeanors alleging they illegally hired minors and let children younger than 16 handle dangerous equipment. The complaint filed by the Iowa attorney general's office said the violations involved 32 illegal-immigrant children younger than 18, including seven who were not yet 16.

The civil penalties totaled $9.99m, including $339 700 for the illegal deduction of "sales tax/miscellaneous" costs nearly 3 400 times; $9.6m for illegally deducting money from 2 001 employees for protective clothing more than 96 000 times; and for failing to pay 42 employees their last paychecks following the raid by immigration agents.

An Agriprocessors spokesperson didn't immediately respond to a call seeking comment. The company has 30 days to contest the proposed fines.

The fines are the latest trouble for Agriprocessors since the raid, in which 389 people from Mexico, Guatemala and Eastern Europe were arrested.

Two human resources employees also were accused of federal violations of helping illegal workers use false documents to work at the plant. One of them, Laura Althouse, pleaded guilty on Wednesday to conspiracy to harbor undocumented immigrants for financial gain and aggravated identity theft. The other worker's trial is scheduled for next month.

- AP