Iowa Town Teeters On Edge Of Ruin

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

(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.

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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.

[organicfarm1]

Sure they are ILLEGAL %u2013 which means that they should not be in the country %u2013 however there are two reasons that they are here 1) they are desperate (more desperate than any American could imagine) 2) The system allows it (companies want cheap labor which typically they can take advantage of, and the government allow them to do it with minor fines and no accountability to the main employer who is hidden behind a string of subcontracted companies) Ten million people WORKING in this country illegally and we can%u2019t find them and yet we have a department of homeland security trying to find terrorists %u2013 quite a paradox.
Most of these aliens receive no government health benefits or other freebees, and it is estimated that well over half pay federal taxes and other taxes. If the government would institute real migrant work laws which would allow people into this country and give them basic worker rights, the companies would be forced to pay a real wage which would make the jobs competitive so American citizens compete for these jobs and could live on the wage. But most AMERICAN people don%u2019t want to live in their car or a cement block one room building with limited plumbing.
So this Thanksgiving be thankful that some person was willing to sneak into this country and live in substandard conditions to provide a great deal of what is on your plate.

[anndoty]

Well, so much for the economic benefit of coming to the US. Of course it seems most posters here are still under the impression that we have a robust economy in the US. Not anymore we dont. Now let''s think for a moment, we are about to experience masses of unemployed American Citizens, some of which will be more than happy to do jobs they wouldn''t have considered in better times. But there will be no work for them because an illegal has that job and we all have all been told that the illegals are not going anywhere. So please tell me where the American Citizen is supposed to go? But no, the illegals aren''t a drain on our economy. I am certian that they will spend those dollars here to give a boost to the economy that they think is so much better. No, they will continue to support the economy in their home countries as they sen dmoney home. Under these circumstances, is it any wonder that our economy is down the tube?

[auscross1277]

Sounds to me like that town oughta ban all federal enforcers by law and empower the police and townsfolk to stop them by force if necessary. Then they should give amnesty to those illegals needed for work and make the processing plant open up and take them back.
If the feds try to interfere again, then let the war begin! Posted by summarex at 06:57 PM : Nov 24, 2008
**** There should be NO amnesty for illegal immigrants! They came to this country ILLEGALLY! and they need to return back to where ever it is they came from... If it is illegal for them to be here.. they need to go home... to whatever country they are from! Let the war begin... Americans versus non-americans! We have the law on our side! I have an asian girlfriend... and when we get married... we plan to have her move here LEGALLY!!!!!!! I have nothing against people that come here LEGALLY! But I hate the thought of anyone that wants to give lawbreakers amnesty! If they came here illegally, they need to return to where they came from!

[auscross1277]

"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." **** By working.... she is "hurting" an American that could be doing the same job, but at a higher wage! It is time for people to demand better working conditions in Guatemala and other Latin american countries, rather than just running to the US to escape their problems! Since there is over 20 million illegal immigrants in the US... they should move back to Latin American and take back their government! Get out of our country! I want to make more than 8 bucks per hour with a bachelors degree... This country is horrible because there is so many low skilled illegal immigrants! Get out illegals! You are called Illegal for a reason! Because you are here illegally! Get out! go home!

[akpals]

I live in Iowa and the biggest thing that makes me mad about these illegals is that they don''t pay taxes, get food stamps, drive expensive pickup trucks, and then send most of their paychecks back to wherever they come from. They also get free healthcare. If I didn''t have to buy food, or pay medical bills I would be sitting pretty good right now. Agriprocessors should go bankrupt if they employ illegals and their teenage kids. This is a joke! They expect us to feel sorry for them? I think it''s funny that they can''t learn a word of english, but can apply for food stamps, and learn to use the debit card food stamps come on now.

[frankinaz]

There''s also a large number of illegal immigrants here in the West that have forged paperwork to illegally obtain their driver''s licenses and car ownership also. Proof: In Nevada (and maybe other states), if you have a driver''s license, you can be selected for jury duty. Some illegal immigrants obtained their NV diver''s licenses legally, thanks to an idiot (Bill Young), former Clark County Sheriff.
These illegal immigrants selected for jury duty here
were able to avoid it because they were not living in this country legally. Clark County knows who these people are, yet it does nothing to them-They commit forgery (and other crimes), and somehow they get away with it. There are virtually no consequences for illegal immigrants that break many laws to remain here illegally.
The illegal immigrant problem is bad in the Southwest, and is spreading throughout the US. It''s time to stop illegal immigration, bust the businesses that hire them, and keep these people from remaining in this country illegally, for good. Hold the homelands of illegal immigrants (Mexico and other countries) responsible for their own people.

[glidescube]

Of spring of illegal aliens born here should also be declared illegal and deported. No more oly-oly oxen free for these pregnant law breakers.

[lavau-2009]

The Fed''s need to take criminal action on these types of businesses that continue to hire illegals instead of hiring American workers at a fair wage.

[rushlimpdrug]

So if we eat Mexican food
we are eating Kosher?

[lavau-2009]

I used to think kosher products were a bit more hygienic than other products.. Not anymore...

The fact that the company allowed undocumented workers who weren''t screened for diseases work for them "FOOD"
is just greedy and disgusting...

[lavau-2009]

The town has itself to blame. They noticed all those illegals moving in town and no one did anything to stop it. Why should honest, American taxpayers have to pay for a town that looked the other way to illegal activities???? They profited from illegal activities...
Now, the government is supposed to welcome all these illegal immigrants into America... NO WAY..
We are in a recession now and we don''t need more illegal or legal aliens in America.

A lot of undocumented workers have bad health conditions and they let them work with American food products... What about the fact that they carry illnesses such as tapeworm infections, meningitis and all kinds of nasty diseases...

They aren''t being screened for diseases and they are coming into our country and spreading them even more... yuck

I hope the town recovers, but they brought it on themselves...

[ontheleft]

''This story is all wrong.''
Posted by Winnesheik at 06:00 PM

No kidding. It''s a dumbed down story that''s typical of corporate media. It presents a handful of facts and leaves out a ton of relevant ones. There''s a great article about the company on Wikipedia. The company''s web site is still up. Their "about us" section is laughable in light of their past practices.

[summarex]

Sounds to me like that town oughta ban all federal enforcers by law and empower the police and townsfolk to stop them by force if necessary.

Then they should give amnesty to those illegals needed for work and make the processing plant open up and take them back.

If the feds try to interfere again, then let the war begin!

[rushlimpdrug]

Posted by Winnesheik at 06:00 PM -

- that''sa whata we calla Kosher greed.

[winnesheik]

This story is all wrong. After the May raid, the illegal immigrants were pretty much gone - at least not working at Agriprocessors. After the May raid, Agriprocessors proceeded to hire legal workers from halfway houses & homeless shelters, and even flying them in from the nation of Palau (Palauians can work legally in the US), promising them 3 months free housing and good pay. But when the workers came, they didn''t get free housing and didn''t get the wages promised. While this was going on, the Rubashkins diverted millions into personal accounts rather than paying creditors. The plant manager (owners son) is now in jail on bank fraud after declaring bankruptcy. It is the greed of the owners that should be the story. There are many things wrong with having illegal workers, and one more thing is that those that hire them, such as Agriprocessors, seem to feel that they can exploit them - paying below minimum wages, hiring children, not providing adequate safety protections, etc. Legal workers would have reported them to OSHA and the press. Agriprocessors knew that they were safe by hiring illegals that wouldn''t complain. The Agriprocessors business model was based on pure greed. They kept it up as long as they could, and when finally found out, they were ready to declare bankruptcy and run with the money. The tiny town of Postville is trying to pick up the pieces.

[rushlimpdrug]

sounds like it''s time to "Pay The Piper".

[seafang]

Well those Iowans maybe should have thought through this Obama "Change to the Old Clinton gang Idea".

Don''t have any sympathy for a place that builds its economy on indentured slave labor from the third world. The USA of tomorrow needs educated people; not the poor of the planet who don''t have the gumption to straighten up their own county''s corrupt governments, and want to come here and help corrupt ours.

We already are the most generous nation in history; but we have nough problems of our own with even Legal "Chain Immigration"; courtesy of the Kennedys. Ye Ted is going to leave America with an unforgettable legacy; the chain immigration law.

Then there''s the US Constitution Article IV, section 4; "The United States shall guarantee to every State in this Union, a republican form of Government and shall protect each of them against invasion. ...."

[barbaraf4]

Posted by louiville2
~~~~~~~~~
I guess you have never actually been to California.

[kamehagreat]

When i was a child , Iwould see my father Off too work with a Brown Bag Lunch , and his Coffee Thermal container, (1960''s) and we would go Out Only once a Year , On My Birthday for Pizza, The remainder of the year it was home cooked meals all year round. Time too get back to Those Good old days.

[kamehagreat]

Wow !! What a MESS we''re in !! As Mayor Bob Penrod says: " This is a Man Made Disaster". I have No WORDS that can Help.