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Unformatted text preview: mpany’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 Ru...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08