Feds Should Leave Oregon Blueberry Farmers Alone
The U.S. Department of Labor has been extorting admissions of employment law violations from American blueberry farmers. Two judges have found that the department's use of “hot goods” orders for perishable goods to be coercive.
While a hot goods order is in place, companies are unable to ship their goods and they must stop production. This is meant to ensure fair competition by stopping goods produced by illegal labor practices from entering the market.
For farmers with perishable goods, the financial consequences are severe. To get a hot goods order lifted before perishable agricultural goods lose all their value, growers must admit guilt and waive all future rights of appeal. They are also required to pay back wages, whether or not they actually underpaid workers, and a fine for the unproven violation of employment standards.
At the end of July, Congress held a hearing about the dangers of hot goods orders on perishable goods. In the hearing, Rep. Kurt Schrader, D-Oregon, reminded members that hot goods orders were never used on perishable goods from 1983 until 2008.
Brad Avakian, Oregon's commissioner of labor and industries, was a witness in the hearing. Avakian is no apologist for businesses that skirt employment laws. Last year his agency conducted more than 2,000 investigations and returned more than $2 million to underpaid Oregon workers. Yet he is rightly concerned about the lack of due process for Oregon agricultural growers.
Even though they had signed away their right to do so, two blueberry growers, Pan-American and B&G Ditchen, challenged the settlement in court on the grounds of duress. They were vindicated, and U.S. Magistrate Judge Thomas Coffin wrote in his January ruling, “The defendants ... were left with no choice but to accept the judgments.”
In April, U.S. District Judge Michael McShane agreed that the government's actions were illegal. Still, the Department of Labor is refusing to return the growers' money and is seeking an appeal.
To have the hot goods order lifted, Pan-American had to pay $41,778 in back wages and a $7,040 penalty. During the week the order was in effect, Pan-American had 400,000 pounds of berries held up and about 280,000 pounds that were not picked. B&G Ditchen had to pay $156,616 in back wages and an additional $13,200 in penalties to end its hot goods order. Additionally, B&D Ditchen claims losses of $90,000 from rotting and overripe berries. Is it any wonder the companies decided to admit guilt?
Employment violations need to be determined though a legal system that respects due process. Extorting confessions from possibly innocent individuals shows no more respect for the law than does refusing to enforce the law.
Rep. Schrader has introduced a bill that would bar the Department of Labor from using hot goods orders on perishable agricultural goods. This bill is a welcome step to reining in the Department of Labor. Let us hope a companion bill is proposed in the Senate and that Congress sends the bill to President Barack Obama to sign. Meanwhile, the government should leave blueberry farmers alone.
This piece originally appeared in Statesman Journal
This piece originally appeared in Statesman Journal