World forum draws anti-Bush activists
Marcus Kabel
SPRINGFIELD, Mo. — A pair of senior Wal-Mart executives knew
cleaning contractors were hiring illegal immigrants, many of whom
were housed in crowded conditions and sometimes slept in the backs
of stores, according to a federal agency’s affidavit.
The affidavit, unsealed last week, was part of an investigation
of Wal-Mart by federal immigration officials that led to the 2003
raid on 60 Wal-Mart stores in 21 states, and the arrests of 245
illegal workers. The retailer agreed to pay $11 million in March
to settle the case. It has maintained that top executives neither
knew of nor encouraged the practice, but that is contradicted by
the newly released documents.
The affidavit was filed by the Bureau of Immigration and Custom
Enforcement to secure search warrants for a 2003 raid on Wal-Mart
Stores Inc. headquarters in Bentonville, Ark.
The document was unsealed Nov. 2 by a U.S. district judge in Fayetteville,
Ark. at the request of a New York attorney representing more than
200 former employees in a civil lawsuit against the world’s
largest retailer.
In the affidavit, investigators said testimony and taped conversations
from 2003 showed two executives at Wal-Mart headquarters knew that
contractors and subcontractors cleaning its stores in several states
employed illegal immigrants from eastern Europe and elsewhere.
The lawyer who asked that the affidavit be unsealed said it shows
Wal-Mart knew it had illegal janitors in its stores.
“The sworn testimony (in the affidavit) establishes that top
Wal-Mart executives conspired with contractors to exploit undocumented
immigrants,” said James L. Linsey, a New York attorney leading
a class-action lawsuit on behalf of former janitors.
Wal-Mart denied there was any incriminating evidence in the affidavit
and said the comments by executives that it contained were “bits
and pieces of information from larger conversations.”
“As we have maintained all along, no company senior official
had any direct knowledge that undocumented workers were working
in our stores,” Wal-Mart spokesman Marty Heires said in an
e-mail to The Associated Press.
According to the affidavit, one cleaning contractor, Christopher
Walters, told INS investigators that his company, IMC Associates
of St. Louis, had been dropped by Wal-Mart in 1997 after INS raids
in the St. Louis area found illegal workers cleaning the retailers’
stores.
Walters told the INS that a Wal-Mart vice president, identified
in the affidavit as Leroy Schuetz and Leroy Shutz, advised him to
set up multiple subsidiaries so that if one of them were found using
illegal workers, he could continue to do business with the retailer
through the others.
The affidavit said another conversation took place in April 2003
at Wal-Mart headquarters between Steve Bertschy, a Wal-Mart vice
president who managed maintenance of all Wal-Mart stores, and two
contractors accompanied by an undercover INS investigator.
After one of the contractors repeatedly mentioned that many cleaning
subcontractors were known to be using illegal immigrants at Wal-Mart
stores, the affidavit said Bertschy commented: “And they load
them up into one or two apartments and they take a family of five
and pay them $1,000 a week, that’s probably a dollar an hour
if they’re there seven days a week and they’re not paying
taxes because they’re not getting paid a fair rate compared
to U.S. standards, then they start stealing from the store to make
up the difference.”
Bertschy did not immediately return a call seeking comment. Schuetz
could not be reached for comment.
Federal raids later found immigrants crowded into small apartments
or trailers in sleeping bags and, in some cases, sleeping in the
backs of Wal-Mart stores, carrying their personal belongings from
job site to job site.
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