POSTVILLE, Iowa, Nov. 23, 2008

Iowa Town Teeters On Edge Of Ruin

CBS Evening News: A Series Of Events Has Destroyed Tiny Postville's Economy

  • Play CBS Video Video Main Street Falls Apart

    Postville, Iowa is a town on the brink of an economic disaster and could be the story of many towns across America in the months to come. Seth Doane reports.

  • Postville, Iowa was just decorated for the holidays as the town teeters on the edge of financial ruin. Photo

    Postville, Iowa was just decorated for the holidays as the town teeters on the edge of financial ruin.  (CBS)

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    Video Coverage: CBS News examines the heated debate over immigration in the United States.

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(CBS)  For months, CBS News has been following the deepening troubles of tiny Postville, Iowa, population 2,200. Now the shutdown of the town's main employer following a federal immigration raid has Postville at the point of desperation, CBS News correspondent Seth Doane reports.
Postville, Iowa was just decorated with holiday cheer. But looks can be deceiving.

"In the last few weeks - it's really gone downhill dramatically," says Mayor Bob Penrod.

With empty streets - and shuttered shops - this small town is facing economic calamity.

Penrod is taking steps this weekend to declare a state of emergency here - but not a natural disaster - rather one that's man-made.

"If we don't get some help from the state or federal government, we're going to be in deep trouble financially," Penrod says.

That's how Jeff Bohr and his wife, Holly feel.

"We were okay for a week or two weeks - but now we're going into the third week and we're just - struggling to survive," Jeff says.

Earlier this month - Jeff and Holly's employer, Agriprocessors, a kosher meat processing plant here suspended operations, and filed for bankruptcy protection. Once the town's largest employer - this was just the latest in a string of setbacks for the company - and for Postville.

It all started on May 12, 2008, when hundreds of federal immigration authorities raided Agriprocessors and arrested 389 workers.

Many like Irma Rucal were undocumented immigrants. Six months later she still wears a tracking anklet and waits for a court date.

"There are a lot of people in the U.S. who, frankly, wouldn't have a lot of sympathy for you," Doane reminded Rucal. "They would say you shouldn't haven't been here you were working illegally and you shouldn't be able to work here."

"They don't understand the poverty that we know in Guatemala," Rucal says. "I never hurt anyone here all I want to do is work."

She says she paid $14,000 to smuggle her 14-year-old son and 15-year-old daughter to the U.S. they say, even though they're minors, they worked at the plant along with their mother to pay down the debt. Now they may testify in a criminal case against the company.

"Do you sometimes wish that you had not come to the United States?" Doane asked the children.

"Yeah," Rucal's son says. "But this is the only place that you can come and make something of your life."

Meanwhile, back at Agriprocessors, the Bohrs wait patiently to find out if they will ever be able to go back to work.

Jeff, who's worked at the plant for 18-years, and Holly, there for 14, have not been laid-off yet.

So, each night they return - to see if the plant will re-open the following day.

"As the money's getting thinner, it's getting pretty tough," Jeff says. It's getting to be a sick feeling every day coming up here."

This night, there's more bad news: no work again. Even the security guard just comes out of habit.

"People think we're getting paid," says the security guard working that night. "We're not getting paid either."

The Bohrs have no idea what they'll do with Christmas around the corner, never mind a mortgage payment due on the first.

"I'm actually afraid to turn the TV on and see what company is asking for a bailout or foreclosing, or bankruptcy every day, because it's gonna eventually catch up to each and every one of us," Jeff says.

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Add a Comment See all 200 Comments
by nnbodens November 23, 2008 8:54 PM PST
I am seriously angered when the media presents a soft story on illegal immigration, sadly watching as families struggle to meet mortgages and put food on their tables. What the media isn''t mentioning are the culprits behind the struggle: corporations hiring illegally, getting caught, and being forced to shut down due to egregious business practices. Hire legal immigants and citizens -- not illegal immigrants. The problem would likely go away, or wouldn''t have happened in the first place. It''s simply common sense. Follow the rule of law.
Reply to this comment
by downtowner97 November 23, 2008 8:57 PM PST
I was born here, and frankly, I don''t want to have to compete with someone who has no intention of reporting their income or paying taxes. I can''t go to Guatemala and expect to get a job and live off that country.

Illegal immigrants get free school for their kids, and free health care from general hospitals legally bound to treat them. If I go to the ER, I have to wait behind them, and my property taxes are high to enlarge the schools for them.

We need to protect our borders, then maybe we''ll be able to afford to give charitable contributions to people in other countries.
Reply to this comment
by antoniof123 November 23, 2008 9:22 PM PST
I don''t get it why isn''t the corporations and their exec''s facing criminal charges. Isn''t that the job of the DOJ or is it that now they work for the President and not the American people. The reason these people come here is because they can get work. The reason they can get work is because these exec''s don''t get jail time.

Wake up America!
Reply to this comment
by antoniof123 November 23, 2008 9:22 PM PST
I don''t get it why isn''t the corporations and their exec''s facing criminal charges. Isn''t that the job of the DOJ or is it that now they work for the President and not the American people. The reason these people come here is because they can get work. The reason they can get work is because these exec''s don''t get jail time.

Wake up America!
Reply to this comment
by babooph November 23, 2008 9:22 PM PST
The propaganda system does not contrast the illegals with the US citizens on soup lines ,living in BUSHVILLE tent cities ,with no health care.Guatamala is not theonly problem area in this" new world order "society.
Reply to this comment
by rudy6543 November 23, 2008 9:37 PM PST
PCreversed,

You keep right on harping about Mexicans while the rich white guys rob you blind. You deserve it.




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Posted by MikeTotten1 at 09:33 PM

Quite the little creep isn''t he?
Reply to this comment
by msubulldogtx November 23, 2008 9:37 PM PST
I''m sick of hearing about how the rich are taking people''s money. If the rich are anything it is smarter than the average moron in the United States. Get yourself educated and quit blaming the government and waiting for handouts.
Reply to this comment
by allzwell November 23, 2008 9:42 PM PST
There have been migrant workers in this country since its inception. Seasonal labor is a mainstay of American agriculture. If we don''t have people to pick the crops we grow, they rot on the vine and we''ll all starve for our useless principles... unless you grow a cash crop like corn which we don''t eat anymore.

Serously, get a grip on reqality, we need a sane migrant worker program to feed this country because our teenagers and college students are NOT going to be picking our crops and landscaping our lawns anytime in the near future, I can guran-dam-tee you that.

Rather than antagonizing a cheap labor force we so desperately need and can use to our benefit, we should utilize this abundant resource to our greater advantage... theirs and ours. They ask so little, how can we deny them the better future we''ve offered the world for generations? My God, it''s what we''re all about, it defines America. To be stingy with our dream defines your betrayal to the dream. They risk death to come here... so would I if I had to. So would you. Enuf said. God Bless America.
Reply to this comment
by nightshade18-2009 November 23, 2008 9:42 PM PST
It''s amazing to see people so bitter over those who take jobs most of us wouldn''t dirty our hands to get. Hat''s off to the local family "Bohrs" who decided to stay in this tiny town to eek out a meager living - having to both work. My grandparents were immigrants, and thank god there was not a cop on every block rounding up the workers to throw them back to Ireland to face starvation. We should legalize our illegals now here, and make a plan to accept citizens into the country legally that doesn''t involve bribery in their country or wealthiness. Imagine sending all the illegals back today - you''ll see your grocery costs skyrocket far above where they currently are. I''ve seen those "migrant camps" that Chavez was supposed to have gotten rid of with his movement over 25 years ago. They are still alive and well in the US today - shanty shacks where families return nightly after working 16 hour days. I''ve dropped off clothing and food to these folks whose only crime is poverty and the daring to dream the American Dream. No one said it better than George Bernard Shaw: "This is the true joy in life - being used for a purpose recognized by yourself as a mighty one; being thoroughly worn out before you are thrown on the scrap heap; being a force of nature instead of a feverish selfish little clod of ailments and grievances complaining that the world will not devote itself to making you happy."
Reply to this comment
by pcreversed November 23, 2008 9:54 PM PST
Mike, it is probably because of Rudy''s immigration status and gender confusion
Reply to this comment
by rudy6543 November 23, 2008 9:56 PM PST
Re: "You''''re quite the creep as well!"

Why''''s that, Rudy?


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Posted by MikeTotten1 at 09:48 PM

Why are you picking on Jews?
Reply to this comment
by rudy6543 November 23, 2008 9:57 PM PST
Posted by PCreversed at 09:53 PM

Marry me sweety!
Reply to this comment
by pcreversed November 23, 2008 9:58 PM PST
That seems overly harsh, and not supported by anything that he wrote.

I don''''t agree.


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Posted by MikeTotten1

Go check out what it wrote on the other story about the woman stuck in the immigration arguement with INS
Reply to this comment
by pcreversed November 23, 2008 9:59 PM PST
Plus it keeps calling me "sweety" even after I have told it that I am not his/her type. I am not a **** like he/she is. that is enough proof for me. he/she is some type of freak.
Reply to this comment
by rudy6543 November 23, 2008 9:59 PM PST
Go check out what it wrote on the other story about the woman stuck in the immigration arguement with INS


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Posted by PCreversed at 09:58 PM

I want to check that out myself, because I am totally sympathetic to her situation. I thought you were going to bed?
Reply to this comment
by pcreversed November 23, 2008 10:01 PM PST
Rudy, you are too much of a queen. Go away like a bad ***
Reply to this comment
by rudy6543 November 23, 2008 10:02 PM PST
Posted by PCreversed at 10:01 PM

Love is in the air
everywhere I look around!
Love is in the air
every sight and every sound!
Reply to this comment
by rudy6543 November 23, 2008 10:04 PM PST
Posted by PCreversed at 10:02 PM

Besame y besame mucho, querido. Tambien puedo contestarlo en espanol! OLE!
Reply to this comment
by rudy6543 November 23, 2008 10:07 PM PST
There are many Jews that I actually admire. Especially those who are critical of the unrelenting terrorist behavior of the state of Israel. They are very brave and honorable, in my opinion.



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Posted by MikeTotten1 at 10:03 PM

But even they continue to use the Menorah at this time of year. I understand your opposition to radical zionists. I often get in trouble on here when I say things against them like when they hassled olive pickers on their own land. But to make a blanket statement throws everyone into the mix. I don''t know why you see a Menorah in this picture, but it''s not necessarily something to do with zionism.
Reply to this comment
by amjoe-2009 November 23, 2008 10:26 PM PST
Postville, Iowa is a town that was quite willing to support hundreds, maybe thousands, of illegal aliens in their community. We don''t have to merely deport hundreds of illegals once or twice, we need to begin deporting 50,000 per month. At that rate we might make a serious dent in their numbers -- in about 15 years. The faster illegal aliens are deported, the better. Oh yes, the part of the constitution that permits anyone born on our soil to be automatically a citizen should be changed immediately. Of course, Bush went along with this *** and so did John McCain. Obama is all for the illegals. The national leadership of both parties does not want to actually get rid of the illegals. The people of the US, the 70% of the population that wants the illegals gone, as in GONE, will have to vote, one by one, the congressmen and senators who won''t adopt this position out of office. We can''t depend on the national parties to do the will of the people in this case. So we''ll have to change the makeup of Congress to get it done.
Reply to this comment
by caasduit November 23, 2008 10:46 PM PST
I have no sympathy for a town that didn''t know their plant was hiring illegal aliens. Wern''t these people paying any attention at all.
The owners of this plant were greedy and brokethe law comming and going. they should not be in business. Add to that the fact they hired illegal aliens who do not go through legal healthscreening because they snuck across the border or however they snuck in. They re handling meat Americans eat.
Reply to this comment
by caasduit November 23, 2008 10:56 PM PST
This company went way beyond hiring illegal aliens.
The owner and managers of the nation''s largest kosher meatpacking plant are scheduled to go to trial next April on more than 9,000 charges alleging child labor violations at the plant in Postville.
Prosecutors accuse the owner and managers at Agriprocessors Inc. of hiring minors and in some cases having children younger than 16 handle dangerous equipment.
Charged are the company itself, plant owner Abraham Aaron Rubashkin; former plant manager Sholom Rubashkin; human resources manager Elizabeth Billmeyer; and human resource employees Laura Althouse and Karina Freund.
Each defendant faces 9,311 individual counts - one for each day a particular violation is alleged for each worker.
The charges each carry a maximum penalty of 30 days in jail and a fine of $65 to $625.

Reply to this comment
by barbaraf4 November 23, 2008 11:10 PM PST
If Agriprocessors would go ahead and lay everyone off, then the Bohrs and everyone else could collect unemployment. Meanwhile the holidays are here and everyone is running out of money.
Reply to this comment
by mysticstone November 23, 2008 11:10 PM PST
If she had $14,000 to have her children smuggled into the country, then why did she not do it in a legal manner. $14,000!!! She could of afforded to have them brought here legally. I do not understand! I do not have any sympathy for these people of the city that knew it was going on, all the way up to the Mayor!!! He should be thrown out on his butt!!! He of all people should of known what laws were being broken and what the consequence was!!!
Reply to this comment
by barbaraf4 November 23, 2008 11:14 PM PST
This is the problem with a one company town. The same thing happen in Seattle in the early ''70s when Boing lost the SST project. They had a 19% unemployment rate.
Reply to this comment
by pcreversed November 23, 2008 11:20 PM PST
"your" is not spelled "yer" either little illegal boy ince you repeatedly mis-spell the same words over and over again, it is poor use of the language not typos
Reply to this comment
by mysticstone November 23, 2008 11:20 PM PST
william6041 said: "You think a mayors going to tell the only factory employment in town how to run their business?" No I do not expect the Mayor to tell a company how to run it''s business, but I would expect the Mayor to be law abiding and not allow illegal aliens into his city so then ICE comes a-knockin, it would not destroy the city!!! Again, the citizens of this small town should be looking down at this dippy Mayor!
Reply to this comment
by pcreversed November 23, 2008 11:22 PM PST
''''Yes, that is one things mayors are supposed to do.''''

And who gets to decide this strange timing.. This walking on broken glass bullshyyyt? Huh? Who gets to decide the timing of when we''''re to live by the book? Who''''s the masterblaster?


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Posted by william6041

Timing??? It is called "the law" and the law has nothing to do with what time it is. Shut up and get a life and in your case, a green card too
Reply to this comment
by pcreversed November 23, 2008 11:34 PM PST
Why don''''t ya mind yer own damned business, and stop minding others? Huh?!


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Posted by william6041

It''s my right, I am a citizen of this country and you obviously are an illegal so I will mind everything you do until i can get you out of my country
Reply to this comment
by lemonskink November 23, 2008 11:35 PM PST
Bush is responsible, along with his minions for creating this modern day Grapes of Wrath. There is no one else to attempt to blame this on. These evil men knew what was required to get a war. They knew what was required to terrorize American citizens have them gladly do their bidding at the risk of being branded Un-American. The best thing Obama can do after attacking the economy, is to see that Bush/Cheney, Rove, Rumsfeld, Perle, and Wolfowitz are investigated deeply. The world will once again respect us with these people behind bars. They''ll once again, know America believes in the rule of it''s laws.
Reply to this comment
by pcreversed November 23, 2008 11:35 PM PST
Talk to that company. See if they''''ll take a paycut to keep that factory in that town. See WHY they were hiring illegals. Not ''''Oh! You broke the law!'''' Nobody here is Mr. Perfect except Mr. Media Man.


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Posted by william6041

It is not hard to obey the law, but illegals know nothing about that or how to use our language. you seem to have a problem with using the language correctly which does not surprise me at all. Go home s p i c k boy
Reply to this comment
by josequest November 23, 2008 11:42 PM PST
Wow, I''ve been to Iowa; however, I''ve never heard of this community. I find it so hard to believe that the townspeople have been so stupid all these years -- I''m quite sure everyone knew what was going on at the plant, but looked the other way because "word" got out that the owners would shut down the plant and move somewhere else if a brave soul spoke up to authorities. Now, be aware - the owners will shut down the plant -- they already did so --- and they sure are not going to lay off any employees who could collect unemployment. Perhaps, the State of Iowa will provide some type of assistance. I''m not wealthy, but I''d gladly purchase your town lock, stock, and whatever for a small token. Perhaps, the town under my leadership could purchase said plant and together get it running again without any undocumented people being hired. Any interest?
Reply to this comment
by mysticstone November 23, 2008 11:44 PM PST
PCreversed, you are a little out of control with that one....he is not worth getting into trouble over, as no one is worth that in my book. Your statement could very well get you behind bars. Calm down and take a few deep breaths!!!
Reply to this comment
by r9119111 November 23, 2008 11:54 PM PST
It has been said that fear is the basis of all intolerance. We have nothing to fear but fear itself.
Reply to this comment
by pcreversed November 23, 2008 11:55 PM PST
now, im on the 7th different network, hope they try to find me
Reply to this comment
by rudy6543 November 23, 2008 11:56 PM PST
Posted by PCreversed at 11:40 PM

This post has been reported.
Reply to this comment
by pcreversed November 23, 2008 11:58 PM PST
that''s so gay of you rudy.
Reply to this comment
by pcreversed November 23, 2008 11:59 PM PST
but who would expect anything else from you
Reply to this comment
by rudy6543 November 24, 2008 12:05 AM PST
Hey Lou Dobbs! Didn''''t you see that pair farmer? Didn''''t it give you any pause to see her piles and piles of pears fer her harvest? Rotting on the ground? Didn''''t it make you wonder if what you were talking about with that big mouth of yers wasn''''t effecting real people''''s lives? She wasn''''t a big, evil corporation. She was a pair farmer.


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Posted by william6041 at 11:16 PM

This is exactly right. It is so sad that racism dominates because of hate radio and Lou Dobbs. Personally, I think that they should make everyone of these people go to work now that they got their wish and the illegals were deported. They should be conscripted to work the farms: Lou Dobbs, Rush Limbaugh, Sean Hannity, Laura Ingraham, Michael Savage and all their listeners and supporters.
Reply to this comment
by ausus-2009 November 24, 2008 12:40 AM PST
It would be nice if people used this forum for sensible discussion rather than racism, political extremism and xenophobia.

Illegal immigrants are a two-sided coin. They work in jobs others do not want at wages below community expectations. However, they do place an education and medical burden on the community. As well, if they drive without proper training they can add to traffic hazards.

This problem is not confined to the US. Europe has illegal African, Turkish and Eastern European workers. Australia has illegal Asian and Pacific Island workers. Mexico has illegals from further south.

Employers should be prosecuted with heavy fines and jail terms for hiring illegals. This would dry up the employment opportunities and hopefully reduce the flow. Of course, that wouldn''t eliminate the number that cross the border as drug traffickers and to take part in other illegal activities.
Reply to this comment
by ffoulkes-2009 November 24, 2008 12:45 AM PST
It looks to me like the entire problem revolves around this company''s illegal hiring practices and all the illegal aliens who inundated this particular town.

Get rid of the illegal aliens, and this won''t be happening. There are plenty of unemployed Americans who (once they have gone without a few meals) would love to have those jobs!

On top of that...$14,000 to ILLEGALLY come here? It doesn''t even cost THAT much to LEGALLY obtain work visas or immigrate.
Reply to this comment
by ffoulkes-2009 November 24, 2008 1:00 AM PST
I disagree. Yer blaming people fer trying to make a living. Fer living the american dream. You people will find fault in anybody. And the grand prize of yer mass exodus crusade is xenophobia! Negotiate with that company to get a lessor wage, to keep them in business. And get those illegal immigrants legal. And stop listening to these psycho fence builders, who think america is a god damned closed society.

Posted by william6041 at 11:04 PM : Nov 23, 2008
___________________________
I live in a border state. The problem is REAL. ILLEGAL immigration must STOP. There are legal avenues people can and MUST take to enter our nation in order to work. These are not all difficult either. ILLEGAL is ILLEGAL.
Reply to this comment
by ffoulkes-2009 November 24, 2008 1:05 AM PST
You got a crop that needs pick''''n? And needs pick''''n fast, one time out of the year?! Who ya gonna call? Manpower?

Posted by william6041 at 11:17 PM : Nov 23, 2008
_______________________
Quit making it comfortable to be without work (ie. Welfare, etc. for those able to work), and more people will be taking these jobs no matter the pay.
Reply to this comment
by thcarson-2009 November 24, 2008 1:06 AM PST


Posted by william6041 at 11:04 PM : Nov 23, 2008


From the L. A. Times
1. 40% of all workers in L.A. County (L.A. County has 10.2 million people)are working for cash and not paying taxes. This is because they are predominantly illegal immigrants working without a green card.
2. 95% of warrants for murder in Los Angeles are for illegal aliens.
3. 75% of people on the most wanted list in Los Angeles are illegal aliens.
4. Over 2/3 of all births in Los Angeles County are to illegal alien Mexicans on Medi-Cal , whose births were paid for by taxpayers.
5. Nearly 35% of all inmates in California detention centers are Mexican nationals here illegally
6. Over 300,000 illegal aliens in Los Angeles County are living in garages.
7. The FBI reports half of all gang members in Los Angeles are most likely illegal aliens from south of the border.
8. Nearly 60% of all occupants of HUD properties are illegal.
9. 21 radio stations in L. A. are Spanish speaking.
10. In L. A. County 5.1 million people speak English, 3.9 million
speak Spanish.
(There are 10.2 million people in L. A. County. )
Reply to this comment
by thcarson-2009 November 24, 2008 1:08 AM PST
You got a crop that needs pick''''''''n? And needs pick''''''''n fast, one time out of the year?! Who ya gonna call? Manpower?

Posted by william6041 at 11:17 PM : Nov 23, 2008



Less than 2% of illegal aliens are picking our crops, but 29% are on welfare.
Reply to this comment
by ffoulkes-2009 November 24, 2008 1:08 AM PST
Why don''''t ya mind yer own damned business, and stop minding others? Huh?!

Posted by william6041 at 11:28 PM : Nov 23, 2008
_________________________
When illegal work practices bankrupt entire towns, then it BECOMES
Reply to this comment
by rudy6543 November 24, 2008 1:10 AM PST
Less than 2% of illegal aliens are picking our crops, but 29% are on welfare.


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Posted by thcarson at 01:08 AM

Source?
Reply to this comment
by ffoulkes-2009 November 24, 2008 1:11 AM PST
Bush is responsible, along with his minions for creating this modern day Grapes of Wrath. There is no one else to attempt to blame this on. These evil men knew what was required to get a war. They knew what was required to terrorize American citizens have them gladly do their bidding at the risk of being branded Un-American. The best thing Obama can do after attacking the economy, is to see that Bush/Cheney, Rove, Rumsfeld, Perle, and Wolfowitz are investigated deeply. The world will once again respect us with these people behind bars. They''''ll once again, know America believes in the rule of it''''s laws.

Posted by Lemonskink at 11:35 PM : Nov 23, 2008
______________________
Explain to me how this company''s illegal hiring practices have ANYTHING to do with President Bush.

How the he77 is he so omnipotent that EVERY problem in the world is his doing?! You people try to give him far more power than he could possibly wield.
Reply to this comment
by rudy6543 November 24, 2008 1:14 AM PST
You got a crop that needs pick''''''''n? And needs pick''''''''n fast, one time out of the year?! Who ya gonna call? Manpower?

Posted by william6041 at 11:17 PM : Nov 23, 2008
_______________________
Quit making it comfortable to be without work (ie. Welfare, etc. for those able to work), and more people will be taking these jobs no matter the pay.


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Posted by ffoulkes at 01:05 AM

Wanna bet? This year in a remote town of Northern California, a strawberry outfit had to IMPORT 380 people from Mexico to work its operations. All were legal, btw, but this company has the money and was desperate for the workers, because up in that area of the country there aren''t that many people around looking for work and to assume that people are as desperate as they were in the 30s to come out from Oklahoma and work while living in tents...well it just isn''t going to happen. And after two months when winter sets in where do they go? At least these workers go back to Mexico and the local economy continues onward.
Reply to this comment
by thcarson-2009 November 24, 2008 1:17 AM PST
Wanna bet? This year in a remote town of Northern California, a strawberry outfit had to IMPORT 380 people from Mexico to work its operations. All were legal, btw, but this company has the money and was desperate for the workers, because up in that area of the country there aren''''t that many people around looking for work and to assume that people are as desperate as they were in the 30s to come out from Oklahoma and work while living in tents...well it just isn''''t going to happen. And after two months when winter sets in where do they go? At least these workers go back to Mexico and the local economy continues onward.


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Posted by rudy6543


Source?
Reply to this comment
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