Fast Food Nation - Eric Schlosser [87]
In the spring of 1970 Holman and three other top IBP executives held secret meetings in New York City with Moe Steinman, a “labor consultant” who had close ties with La Cosa Nostra. Unionized butchers in New York were blocking the sale of IBP’s boxed beef, out of solidarity with the striking workers and fear for their own jobs. IBP was eager to ship its products to the New York metropolitan area, the nation’s largest market for beef. Moe Steinman offered to help end the butchers’ boycott and in return demanded a five-cent “commission” on every ten pounds of beef that IBP sold in New York. IBP planned to ship hundreds of millions of pounds of beef to New York City every year. Currier J. Holman agreed to pay the mob its five-cent commission, and the leaders of New York’s butcher union promptly withdrew their objections to IBP’s boxed beef. Shipments of IBP meat were soon being unloaded in Manhattan.
After a lengthy investigation of mob involvement in the New York City meat business, Currier J. Holman and IBP were tried and convicted in 1974 for bribing union leaders and meat wholesalers. Judge Burton Roberts fined IBP $7,000, but did not punish Holman with any prison term or fine, noting that bribes were sometimes part of the cost of doing business in New York City. Holman’s links to organized crime, however, extended far beyond the sort of payments that honest New York businessmen were often forced to make. He appointed one of Moe Steinman’s friends to the board of IBP (a man who a decade earlier had been imprisoned for bribing meat inspectors and for selling tainted meat to the U.S. Army) and made Steinman’s son-in-law a group vice president of IBP, head of the company’s processing division (even though the son-in-law, in Judge Roberts’s words, “knew virtually nothing about the meat business”). And Holman forced out four top IBP executives who opposed dealing with organized crime figures. Subsequent investigations by Forbes and the Wall Street Journal cited IBP as a prime example of how a mainstream corporation could be infiltrated by the mob.
The relentless low-cost competition from IBP presented old-line Chicago meatpackers with a stark choice: go west or go out of business. Instead of symbolizing democracy and freedom, going west meant getting cheap labor. One by one, the packinghouses in Chicago closed down, and slaughterhouses were built in rural states hostile toward labor unions. The new meatpacking plants in Iowa, Kansas, Texas, Colorado, and Nebraska followed IBP’s example, paying wages that were sometimes more than 50 percent lower than what union workers earned in Chicago.
I recently drove through Chicago’s Packingtown with Ruben Ramirez, president of the United Food and Commercial Workers (UFCW), Local 100A, the city’s meatpacking union. Ramirez is in his early sixties, but still looks fit enough to work in a packing plant, with broad shoulders, a thick neck, and strong hands. His smoothly shaved head adds to his formidable appearance. When Ramirez arrived at the Chicago stockyards in 1956, cowboys on horseback still herded cattle from their pens to the slaughterhouses. He was seventeen years old at the time and did not speak any English. He’d just come from Guanajuato, Mexico, and found a job at an old processing plant operated by Swift & Company. He was one of the few Mexicans employed there; the other workers were Polish, Lithuanian, and African-American. They looked down at Mexicans, and so Ramirez was not allowed to use a knife or perform any skilled tasks. Supervisors gave him the lowest menial jobs in the plant. He carried heavy boxes and barrels of meat, getting soaked in blood that hardened and froze to his clothing during the winter. After a few years he went to work for a nearby processing company, Glenn & Anderson, where he worked in sanitation. Three years later Ramirez was finally promoted and allowed to cut meat. He saw friends get badly injured on the job, lost the middle finger on his right hand while using a saw, got knocked unconscious when a side of beef fell off