Pallet firm settles immigration case for $21 million

Pallet firm settles immigration case for $21 million IFCO Systems North America, a maker and distributor of pallets for a wide variety of shipping uses, has agreed to pay a $20.6 million fine to avoid prosecution for hiring illegal immigrants, U.S. Immigration and Customs Enforcement announced on Friday.       Houston-based IFCO specializes in supplying and managing a pool of 75 million plastic reusable containers primarily used to transport fresh produce to grocery retailers. It also manufactures and manages the distribution and return of wooden pallets used in the warehousing and transportation industry for shipping packaged goods and produce. It is the largest pallet management company in the United States.
   IFCO's Dutch parent company said that it has taken steps to strengthen and standardize its employment compliance practices as part of the settlement with the U.S. Justice Department. Remedial actions include use of the Department of Homeland Security's 'E-Verify' screening program for all new hires, and verifying the social security numbers of all IFCO employees through the Social Security Administration. IFCO is also required to maintain an employee hotline to receive reports of any suspected violation of law at the company.
   The settlement is the largest ever with a corporation charged with employing illegal immigrants. Wal-Mart agreed to pay $11 million in 2005 to settle charges of using illegal janitorial workers.
   The settlement only applies to IFCO Systems itself and not to employees accused of immigration-related violations, such as document fraud, and conspiring to transport and harbor undocumented workers and induce them to enter the United States to work for the company.
   Federal immigration agents raided IFCO facilities in September 2006, apprehending almost 1,200 illegal workers and arresting about a dozen managers.
   Nine senior managers have since pleaded guilty to misdemeanor and felony immigration charges.    Others still face charges and may be prosecuted in New York.
   IFCO's probation period runs through 2012, after which all charges will be dropped if it complies with the agreement.