Is this not poof economist testified Hiring workers depressed wages at Tyson Foods plants?

Question

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.

“The data is not reliable,” Mr. Green said. “It’s infected on many fronts.”

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.

If the damage amount is allowed and plaintiff’s win the suit, Mr. Foster said it could cost Tyson Foods up to $75 million.

“If we win, (the damages) will automatically be tripled,” he said.

Mr. Green criticized Dr. Borjas’ methodology, which he said does not paint an accurate picture because wages are compared to statewide data rather than to wages in the areas immediately surrounding the Tyson plants in question.
http://www.timesfreepress.com/absolutenm/templates/local.aspx?articleid=24837&zoneid=77
BTW a boycott of Tyson Foods helps too...why put the prices up to pay for the lawsuits if nobody is buying Tyson anyway?

Answer 1

what amazes me is that our government and the media continue to convince us that this is not true. i believe it depresses all wages to an extent just the jobs illegals can hold more severely. the company i work for has not changed its starting wage since at least '97 when i started there and who knows how long before that. i know exactly why they did what they did by bringing in illegals the baby boom was over and with the lesser number of workers it was a workers market. my sister was able to get moving expenses paid and she negotiated her starting wage up by $15,000. now she's lucky to get a job. check the article's on the links i peruse daily to keep people informed as to the happenings as the national news does not seem to want us to know just what is happening. check out my answers as i do this regularly. my 17 year old son cannot get a job as they are primarily taken by adults who i suspect are illegal. middle class is not so middle anymore.

Answer 2

I wonder what their TB rates are like in their employees?

I've seen two situations in the press lately where there were more 'exposed to TB' results on meat packing employee screenings than there were people who didn't come back positive for TB exposure. I had thought this was only a reflection of illegal immigration since standard legal immigration is screened for health issues, but I have heard recently that the temporary visas (H2A etc) aren't screened either, which definitely seems a design flaw for a food related visa, to me.

At what cost do they get this cheap labor?

Answer 3

Awesome point. This is so true. And it's not just at Tyson Foods, either. If you increase the number of workers (supply of labor) without a similar increase in the number of jobs (demand for labor) then wages must decrease in that sector. Econ 101.

Too bad the Pro-illegal crowd doesn't care about the TRUTH. They'll just say the economist is a 'racist.'

Answer 4

You are right.

One thing I haven't seen addressed is the E-Coli recalls.

One of the most common jobs for illegals is in food processing plants.

Why are we having so many recalls now?

Coincidence... or European decendents get out or die?

Answer 5

That's one excessive damages award I'd be happy to see.

Answer 6

Fire all of them,the winers.