Friday, November 13, 2009

STATEMENT FROM THE HEKHSHER TZEDEK COMMISSION REGARDING THE CONVICTION OF SHOLOM RUBASHKIN

New York, NY (November 13, 2009) -- The news out of Sioux Falls, SD, yesterday, that Sholom Rubashkin was convicted on 86 out of 91 counts of fraud in the state’s investigation into criminal activity within the Agriprocessor’s meat processing facility in Postville, Iowa, delivers both justice and a heavy heart to those of us who champion the cause of ethical kashrut.

The investigation into Agriprocessors has unfolded in slow-motion. First there were allegations of business fraud and worker abuse, then investigations, then negotiations – all with ample opportunity for the Rubashkin family to cooperate and self-correct -- then arrogant disregard for the law, shocking revelations, indictments, a plethora of press attention, the riveting scandal of the federal raid in May of 2008, the largest scale of its kind in US history...and finally the verdict of guilty on the majority of counts of business fraud in yesterday’s trial.

It is important to note that the trial on charges of worker abuse is not even underway. The heartbreaking stories that will emerge in the course of this trial will be as cringe-worthy as they are criminal.

As the founders of Magen Tzedek, we were on the ground in Postville from the virtual start of this tragic drama in the summer of 2006, bearing witness to the terrible worker conditions and business practices at the nation’s largest manufacturer of kosher meat and poultry, trying to steer the Rubashkin family towards taking responsibility and correcting their mistakes, acting in accordance with the biblical injunction – “hokhaich tokhiach et amitecha” – “rebuke your kinsman,” that is, do not stand idly by while one of your brethren commits a grievous wrongdoing.

Although the miscarriage of kashrut at Agriprocessors was not the catalyst for the creation of Magen Tzedek, it provided an urgent context and need for us to develop our initiative, proclaiming publicly our belief that keeping kosher is inextricably linked to leading a life of ethical integrity.

There are tragedies within tragedies in the story of the fall of the house of Rubashkin, the worst of which might be the deaf ear of the Rubashkin family turned towards those who tried to prevent the collapse. We were at the epicenter of those who repeatedly reached out to the family. Yet as the investigation and trial wore on, it became clear that the deafness was a direct result of the Rubashkin family’s flagrant disregard for the law and ethical behavior.

There is neither joy nor a sense of schadenfreude in yesterday’s conviction. Those of us who toil in the field of tikkun olam are downright demoralized by this highly preventable outcome. This story could have ended very differently. Had the Rubashkin family done a sincere teshuva – heeding, for instance, the three-pronged course of action we delivered to them in the summer of 2006 -- they would now be the heroes of the kosher world instead of its villains.

Given the sad outcome of this situation, we rededicate ourselves to the birthing of our Magen Tzedek seal of ethical certification, a process that has been long and arduous but more relevant with each passing day.
After thousands of hours of meetings, deliberations, drafts of our working guidelines and compliance procedures, we are getting closer. The soul and future of kashrut depends on the development of Magen Tzedek as an actual seal on kosher food products, indicating that it has been produced in accordance with high ethical standards for employee wages and benefits, health and safety, animal welfare, corporate transparency and environmental impact. What has emerged in the course of the development of this product is that Magen Tzedek is more than just a new certification for kosher food -- it is a worldwide awareness built upon the belief that we are how and what we eat.
Achieving Magen Tzedek is our ascent to Sinai, fraught with challenge and yet possessed of a promise. Like the Law that Moses receives at the summit of the mountain, Magen Tzedek will give Jews and all people of conscience a road map towards leading lives of ethical integrity through the portal of keeping kosher.


The Hekhsher Tzedek Commission

Rabbi Morris J. Allen, Project Director


For further information about this statement or to request an interview with any member of the Hekhsher Tzedek Commission, please contact Shira Dicker at shira@hekhshertzedek.org; 917.403.3989. Because of the Sabbath, please make these requests prior to 4 pm EST.

Wednesday, September 9, 2009

New Kosher Food Certification May Be Most Detailed In the Industry

Magen Tzedek’s Ethical Standards Apply Even to Workers’ Wages
By Nathaniel Popper
Published September 09, 2009, issue of September 18, 2009.

The Conservative movement has released detailed guidelines for what experts say could be one of the most comprehensive food certifications in existence.

The guidelines for the new Magen Tzedek food certification are intended to ensure that ethical standards are adhered to in kosher food production, and they delve into nearly every phase of the production process. A group of Conservative rabbis began developing the certification more than two years ago after a Forward article drew attention to the poor working conditions at what was then the world’s largest kosher slaughterhouse, Agriprocessors, in Postville, Iowa.

The Hekhsher Tzedek commission, which created the guidelines with the backing of the national bodies of Conservative Judaism, has previously released rough sketches of what the certification would encompass. But the rules released this week go on for 175 pages and delve into great detail on the standards companies will need to meet if they want to earn a Magen Tzedek certification. (Hekhsher Tzedek means certification of justice in Hebrew, while Magen Tzedek means seal of justice.) Those standards broadly break down into five areas: treatment of employees, animal welfare, consumer issues, corporate integrity and environmental impact.

Among the specific rules laid out in the draft is one stipulating that a company would have to pay its lowest paid employee at least 115% of the federal minimum wage (currently $7.25 an hour) and provide the same employee with health and other benefits that amount to at least 35% of his or her wages. These standards, and many others, would apply to workers who produce any ingredient that is at least 5% of the weight of the final product.

There are a number of certification programs that look at one or another of the specific categories that the Magen Tzedek is interested in — but industry experts say that there are almost no other food-certification systems that are as comprehensive and thorough as what the Conservative rabbis are proposing.

“The breadth is impressive,” said Scott Exo, director of the Food Alliance, which bills itself as the “most comprehensive third-party certification for the production, processing, and distribution of sustainable food.”

The guidelines are being offered for public comment, and the commission is hoping to have an application and a beta test of the program done by the end of this year — with the program starting next year. The Hekhsher Tzedek commission is in talks with an independent auditing company that would conduct the actual certifying audits.

“This shows that it is possible to take Jewish norms and to produce a set of standards that are measurable and operational,” said Rabbi Morris Allen, the Minnesota congregational leader who founded the Hekhsher Tzedek commission.

From its inception, the certification has faced skepticism from many in the Orthodox rabbinate, which has traditionally overseen kosher food certification. Many rabbis have worried that the Magen Tzedek could be seen as an effort to replace kosher certification with modern ethical standards.

The guidelines state that the new certification is targeted at kosher products “because those are specifically of interest to Jews and already claim a special status in the Jewish community.” But the guidelines are careful to note that Magen Tzedek “is in addition to, not instead of, the kosher hekhsher mark.”

Past disclaimers, however, have not satisfied critics of the Hekhsher Tzedek initiative.

“My sense is that the Orthodox world, which remains the engine behind the kosher market, will continue to insist that all social justice issues be guided by government,” Menachem Lubinsky, a consultant to kosher companies and the organizer of the largest kosher industry trade show, told the Forward in an e-mail.

Regarding the Magen Tzedek effort, Lubinsky wrote: “Industry people have told me time and again that it will have little effect on the average consumer (including Conservative Jews) who will continue to base their purchase of kosher products on kosher certification, quality, and price.”

The breadth of the new standards also make them vulnerable to the criticism that they will be hard to enforce — and the guidelines go in many directions that would be difficult to ground in Jewish law, such as the directive for the certification to look at “how many microwave ovens are in the lunchroom for workers to heat food.”

In order to blunt possible criticism, the commission consulted with a board of kosher companies that have given feedback on how to make the guidelines more workable. But Kimberly Rubinfeld, who is the commission’s program manager, said that converting rough Jewish ideals into practical rules was not easy.

“Nothing comes directly from Torah — it is all interpretation,” Rubinfeld said, “so there has been a lot of discussion and debate about how do we convert Jewish values to all of these different areas. This is talking about every step of the production process from the farm or the field all the way to your fork.”

The guidelines were drawn up for the Hekhsher Tzedek commission by Joe Regenstein, a professor of food sciences at Cornell University and an a consultant on food certification projects.

“We are trying to have standards that most companies can meet, because we want most companies to commit to improving their business ethics,” he said.

The certification allows companies to build up points that eventually add up to either a Magen Tzedek or a Magen Tzedek with distinction. In a number of the five areas of evaluation, such as animal welfare, the Magen Tzedek would rely on already existing auditing agencies.

But in many of the areas of evaluation, the new guidelines propose a broad and fresh look at a company’s operations. The most intensive area of inquiry appears to be in labor standards, in part because there are so few accepted standards in this realm.

“That is probably going to be the hardest one — for both the companies to meet and for us to assure ourselves that things are happening properly,” Regenstein said.

As they are now, the guidelines would require a company to submit information on wages, benefits, child care and annual cost-of-living increases, as well as its sick leave, vacation, bereavement and parental-leave policy.

Regenstein said that these guidelines will be particularly difficult to transplant overseas, and so, at least initially, the Magen Tzedek will be confined to companies producing in the United States. But as with the larger vision, Regenstein dreams big.

“I want it on all the products that are in the supermarket, from the pastas to the ice creams,” he said.

Contact Nathaniel Popper at popper@forward.com

Wednesday, July 22, 2009

New Owner of Agriprocessors Faces Old Questions About Its Plans For Company

By Rebecca Dube
Published July 22, 2009,

The new owner of the Agriprocessors plant in Postville, Iowa, whose bid of $8.5 million for the troubled kosher meatpacking plant was accepted by a federal bankruptcy court judge July 20, is stepping into a business, and an industry, that has weathered changes under a harsh spotlight in recent years.

Agriprocessors was bought at auction by SHF Industries, a company formed by Canadian plastics manufacturer Hershey Friedman and his son-in-law, Daniel Hirsch. Friedman owns Polystar Packaging Inc. of Montreal, which is a top maker of plastic packaging for meat. An observant Orthodox Jew, Friedman is also well known in the Montreal community for his philanthropy.

Those who have been watching the Agriprocessors saga have a lot of questions for Friedman — questions about what the ethical standards will be, how workers will be treated and how involved the Rubashkin family will be, if at all, in the future operation of the plant. The Rubashkins built Agriprocessors into the nation’s largest supplier of kosher meat, but they were forced to declare bankruptcy, and now they face criminal charges over their employment, and treatment, of undocumented workers.

It’s not yet clear whether, or how, Friedman will distance himself from the company’s legacy. He could not be reached for comment, but in an interview with Mishpacha, an Orthodox Jewish family magazine based in Jerusalem, Friedman described the Rubashkin family as “wonderful people” who “were victims of a massive witch hunt.”

Speaking with The Des Moines Register later, Friedman clarified his statement, saying that the former owners would have no role in upper management. “It’s a very large family,” he told the Register. “There are nice people in it and not-nice people.” He said that some members of the family might continue to work at the plant at lower-level jobs.

Critics of Agriprocessors are withholding judgment. “I hope, in the coming days, the Friedmans will understand the importance of speaking clearly about their plans for the company,” said Rabbi Morris Allen, leader of the Conservative movement’s Hekhsher Tzedek effort to reform labor practices in the kosher food industry. “I hope that there can be a restoration of kosher meat in this country that is not just ritually appropriate, but ethically appropriate, as well.”

The Forward’s exposure in 2006 of subpar working conditions at Agriprocessors, and the massive 2008 federal immigration raid of the factory, which resulted in nearly 400 workers being arrested, has sparked an international debate over to what extent kosher standards should include ethical treatment of workers. And since Agriprocessors shut down its beef production lines and declared bankruptcy last year, new competitors have stepped in to fill the breach.

The $8.5 million purchase price falls well short of the $22 million that Agriprocessors owes to unsecured creditors, including back pay and benefits to employees. Another bidder, Soglowek Nahariya Ltd. of Israel, was reportedly prepared to pay $40 million for the bankrupt company last March, but rescinded the offer before the auction took place. SHF was apparently the only bidder at auction for Agriprocessors, which in 2002 reported sales of $180 million to Cattle Buyers Weekly.

In the purchase agreement approved by the bankruptcy court, Friedman is not liable for any debts owed to Agriprocessors’ unsecured creditors, including Postville-area businesses, farmers who supplied animals to the plant and former workers who are owed back wages. While the sale of Agriprocessors is undoubtedly good news for Postville, a town of 2,500 that relied heavily on the meatpacking plant for jobs, it’s doubtful whether former employees will see any of the money they’re owed.

“I think not, and it breaks my heart,” Allen said. “A lot of people in Postville who did a decent day’s work for a decent day’s pay probably will never be made close to whole. Hopefully that’s something the Friedmans will address in the coming days.”

A coalition of Jewish and local leaders called the Postville Community Benefits Alliance is pressing to meet with the new owners to discuss issues such as improving wages for workers.

“We’re hoping a meeting will occur sooner rather than later, and the owners will attempt to build a relationship with the community and be more transparent in how they run the plant than the previous owners were,” said Vic Rosenthal, executive director of Jewish Community Action of St. Paul, Minn., and a member of the alliance.

Federal prosecutors have filed a 163-count indictment against Agriprocessors and former plant manager Sholom Rubashkin, son of company founder Aaron Rubashkin, with charges including labor law violations, bank fraud, mail and wire fraud, and nonpayment for livestock. Meanwhile, the Iowa Attorney General’s Office has filed more than 9,000 child labor charges against the plant and its owners and former managers.

Rubashkin intends to plead not guilty to all charges, his lawyer has said. Some lower-level managers already have pleaded guilty to immigration-related charges.

Allen said he hoped that none of the Rubashkin family would be allowed to continue in management roles at Agriprocessors under the new owners.

Before the immigration raid, the bankruptcy proceedings and widespread layoffs, Agriprocessors was the nation’s largest kosher meat producer, with a work force of about 800. The company distributed its meat under the labels Aaron’s Best, Rubashkin’s and Shor Habor. The number of employees has dwindled to about 100 as the plant has maintained production of a limited amount of poultry, but not beef, in recent months.

Also in his interview with Mishpacha, Friedman said he hopes to get the beef-processing plant up and running again by the High Holy Days.

Contact Rebecca Dube at dube@forward.com