Tyson Accused of Holding Down Wages by Hiring Illegal Immigrants

Carolyn Hileman* | November 12, 2007

An economist testified Wednesday in U.S. District Court that Tyson Foods depressed wages at eight plants by hiring undocumented workers.

“It seems Tyson pays lower wages than what other unskilled workers get in comparable labor markets,” said Dr. George Borjas, who compared wage data and produced a report for plaintiffs in a class-action lawsuit filed against Tyson.

Defense lawyer Tom Green is asking Chief U.S. District Judge Curtis Collier to rule the report and Dr. Borjas’ testimony inadmissible at the trial, which is scheduled to begin March 3, 2008.

Mr. Green produced several papers written by Dr. Borjas, including a commentary published in the Wall Street Journal claiming an influx of immigrants to an area has a “weak but negative impact” on wages in a city.

Chicago-based attorney Howard Foster, who represents the former Tyson employees seeking damages for depressed wages, said Dr. Borjas estimated wages at eight Tyson plants saved the meat producer about $25 million from 1998 to 2006.

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