Micronesians recruited to move to Iowa and work at a pork processing plant have reported abuse by the company, including human trafficking, labor and verbal abuse.

Gov. Kim Reynolds said Wednesday in a news conference that the state will withhold incentives for the company, Seaboard Triumph Foods in Sioux City, while the allegations about its treatment of the Pacific islanders are investigated.

The government of the Federated States of Micronesia has formally requested that the United States government look into allegations lodged by employees.

Dozens of Micronesian employees have reported "serious and sustained abuse," including the company seizing passports, issuing false Social Security numbers, refusing to provide copies of employment contracts, and providing work that is inconsistent with what recruiters promised, according to the request posted online by the Micronesian embassy.

Seaboard Triumph Foods told the Sioux City Journal in a statement that it is aware of the allegations.

"Seaboard Triumph Foods is compliant with all laws and regulations during the hiring process and remains committed to ensuring a legally compliant work environment for each member of our staff," the statement said.

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The company did not respond to requests for comment Wednesday by the Des Moines Register.

The state promised incentives to Seaboard Triumph Foods when the company built its $300 million facility.

"We are going to hold and not allocate any of the incentives until the investigation is finalized and we understand, first of all, if that took place and how they are reacting to the allegations that they've been accused of," Reynolds said in her press conference.

Mele Tataipu of Mason City, whose two nephews recently quit the jobs they held at Seaboard Triumph Foods for fewer than two months, said the company seized their passports for several weeks, did not follow through on a promise of free room and board for the first three months of employment, and did not provide translators during orientation or throughout their employment. Micronesians speak a language known as Pohnpeian.

"They were being exploited," Tataipu said. "They just want to work and support their families back home."

Micronesia is a chain of islands in the Pacific Ocean. An independent republic that formerly was part of a U.S.-administered territory, the country has an agreement under which its citizens can work in the U.S. without visas or green cards. Micronesian citizens are eligible for Social Security cards.

Seaboard Triumph Foods recruited about 200 employees from Micronesia to work at the plant, said Karen Mackey, executive director of the Sioux City Human Rights Commission. The embassy's request said they were specifically recruited from the island of Pohnpei.

Most moved to Iowa in the last few months, Mackey said. The employees were being housed at a Sioux City hotel.

When it recruited the Micronesians, the company told them it would deduct 11% from their paychecks to pay for their travel to Iowa, Tataipu said. It also promised to provide the new employees with three months of rent and food, she said.

But last week, the company said it would start deducting 50% of employees' paychecks to cover those costs, according to Tataipu. When they questioned the deduction, the employees returned to the hotel to find their rooms were locked, she said.

"They waited in the lobby for hours coming back from work, not having anything to eat," Tataipu said.

She also alleged that the company's recruiter seized employees' passports for several weeks while the company told them it was working to get them Social Security cards. The Micronesian embassy's request says Seaboard Triumph Foods withheld employees' passports "in order to threaten or punish workers."

Many employees had no other form of ID and couldn't cash their paychecks, Tataipu said.

Seaboard officials told the Associated Press workers are assigned a temporary tax ID number until their permanent Social Security card arrives a couple months after they start work.

Tataipu said her nephews and other employees have reported the company's actions to the Sioux City Human Rights Commission, which investigates discrimination complaints related to employment, housing, public accommodation, education and credit.

Mackey, the commission's executive director, could not confirm that cases had been filed with her office. Those reports are confidential.

But Mackey said she has been in touch with Seaboard Triumph Food's executive leadership in the last few days.

"Obviously, it was an issue that they were very concerned about and clearly from the conversation with them, they're trying to take steps to make sure any issues are resolved," she said.

A person who answered the phone Wednesday at the Embassy of the Federated States of Micronesia in Washington, D.C., said the staff member assigned to the case would not be available for comment this week. It's unclear if the U.S. government has agreed to investigate the employees' allegations.

"The Government of the FSM respectfully requests the Government of the United States' urgent attention and action on this matter," the request reads.

Seaboard Triumph Foods, a partnership between Missouri-based Triumph Foods and Kansas-based Seaboard Foods, opened its 925,000-square-foot plant in September 2017. It has the capacity to process 21,000 hogs a day and is the second-largest fresh pork plant in the world.

The company recently added a second shift and anticipates employing up to 2,400 people.

At the 2017 World Pork Expo, the company's executives said they planned to look to refugees and immigrants for part of their workforce because of the region's low unemployment rates.

"We think if we create the right working environment for people and offer fair benefits and wages, we think we can attract them," Terry Holton, CEO of Seaboard Foods, said at the time.

Production jobs, with positions available on the kill floor and in stockyards, shipping and rendering, start at $15.95 an hour, according to job postings on the company's website. The company offers "affordable health insurance" and a 401k, the website says.

The Iowa Economic Development Authority in 2015 awarded the company nearly $13.2 million in the form of investment tax credits, sales tax refunds and job-creation tax credits. A portion of those tax credits are paid out annually. Those incentives are on hold.

Sioux City granted tax abatements for the project worth $7.7 million, an in-kind contribution in the form of wastewater infrastructure improvements worth $389,000 and a land sale discount worth $625,000.

Tataipu said her nephews are fortunate to have family members in Iowa who speak English and can advocate on their behalf. They have temporarily moved in with her and her husband, who is from Micronesia, while they look for work.

Others employed by Seaboard Triumph Foods have no other option but to continue working there, she said.

"Where are they going to go? They are 7,000 miles away from home. They came here to work," she said. "A lot of them just stayed because they're new here to the states. A lot of them don't know the laws."

Register reporter Stephen Gruber-Miller contributed to this report.

Kim Norvell covers growth and development for the Register. Reach her at knorvell@dmreg.com or 515-284-8259.

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