Western Iowa Tech settles one of two labor trafficking lawsuits for $3 million
Western Iowa Tech Community College will pay $3 million to 13 Chilean students who accused the Sioux City institution of labor trafficking.
The college confirmed in a statement that the settlement, first reported by Siouxland Proud, had received approval from its board on Wednesday.
The agreement came in one of two lawsuits filed by foreign students from Brazil and Chile. They alleged they were recruited to travel to Iowa for what they thought would be two-year degree programs in robotics and culinary arts, including free tuition, room and board, and supported by internships with local companies. Instead, they alleged, they were placed in jobs on the line at a dog food plant and other factories, deprived of food and forced to work under threats of deportation.
The students traveled to Iowa under J-1 exchange visas overseen by the U.S. State Department, which in 2019 found multiple issues with the college's implementation of the program and ordered it to place students in more suitable internships. The school canceled the program and sent the students home in the early days of the COVID-19 pandemic.
The college in statements, including the one Wednesday, and court filings has acknowledged missteps with the program but denied allegations that the students were intentionally misled or exploited. In its statement, it said the decision to settle "was made for financial reasons and not as an admission of wrongdoing."
"We appreciate the board board’s decisive action and are pleased to have this matter resolved,” Terry Murrell, president of Western Iowa Tech, said in the statement. “The college’s enrollment and finances are strong, and we remain focused on providing an enriching educational experience for all WITCC students. This matter will not impact or influence our programs or future plans."
Attorney Ben Bergmann, representing the former students, said they have reached a separate, confidential settlement with Royal Canin USA, which operated one of the factories where they were placed. Additional claims remain pending against Tur-Pak Foods, another manufacturer, and staffing agency Premier Services Inc. Bergmann declined to comment further.
Sarah J. Millsap, an attorney for Premier Services, said the company was not involved in the settlement and "strongly denies any allegations of wrongdoing," adding that it "intends to continue its vigorous defense against these spurious claims."
The Des Moines Register has reached out to attorneys for Royal Canin and Tur-Pak for comment.
The second lawsuit, involving nine students, also brings claims against the college, Royal Canin, Tur-Pak and Premier and is set for trial in May 2025. The college and attorney Roxanne Conlin, representing those plaintiffs, confirmed they have not settled their case.
"The outcome of that lawsuit is unrelated to this decision," the college said its statement.
William Morris covers courts for the Des Moines Register. He can be contacted at wrmorris2@registermedia.com or 715-573-8166.
This article originally appeared on Des Moines Register: Iowa school's labor trafficking lawsuit leads to $3 million settlement
