ICE raids dent IFCO profits

ICE raids dent IFCO profits    IFCO Systems N.V., one of the largest providers of pallet management services in the world, said it expects a small pre-tax third quarter loss due to costs related to U.S. immigration violations.
   U.S. Customs and Immigration Enforcement raided 40 IFCO plants and offices in April and apprehended 1,187 illegal workers. Seven IFCO managers were charged with conspiring to transport and harbor undocumented workers, and induce them with jobs to enter the United States.
   IFCO Systems North America, Houston, is experiencing higher than expected legal costs related to the ICE investigation, as well as a temporary decline in productivity and profitability in the United States. Pallet Management Services division due to the workforce disruption. The company, headquartered in Pullach, Germany, said it has only been able to replace a portion of the workers lost to the enforcement action.
   For more details about the IFCO case and how U.S. authorities are cracking down on undocumented workers in the logistics sector see the June American Shipper, page 62.