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News: Mohawk Industries Update

Mohawk Industries Update
Mohawk Industries Update – March 21, 2006

Business Week Magazine’s March 27, 2006 edition features an article on the ongoing litigation now pending before the U.S. Supreme Court involving Mohawk Industries. As noted in several postings below, Mohawk Industries is a South Carolina company that has been sued under the Racketeer Influenced and Corrupt Organizations Act (RICO) by several current and former employees who charge that the company has knowingly hired illegal immigrants in an effort to keep labor costs down, all in violation of RICO. Oral arguments in the case are scheduled to be heard by the Supreme Court on April 26, 2006.

The article was interesting to read in that it examined the effect that a Supreme Court decision against Mohawk might have in Calhoun, South Carolina. Mohawk is the largest employer in Calhoun. One local pastor is quoted in the article as saying that “if there were a housecleaning of Hispanic immigrants, [Calhoun] would collapse.” The article notes that Hispanic employees are crucial if Mohawk is going to keep its production from moving elsewhere and quotes Bert Lance (the former head of OMB under President Jimmy Carter and a Calhoun native) as saying that an immigration crackdown would be “very, very costly” to Calhoun.

The full article can be found at Business Week’s March 27, 2006 edition, pages 86-88.

I will continue to update this site as the Mohawk case proceeds in the Supreme Court.

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