OSI Group, a major privately held food-processing company based in Aurora, Illinois, faced significant scrutiny in 2014 following a food safety scandal involving one of its operations in China. At the same time, reports highlighted a longer history of employment-related lawsuits and complaints involving OSI operations in the United States.
About OSI Group
OSI Group is an international food-processing company that supplies meat and other food products to major restaurant and food-service businesses. At the time of the controversy, the company employed approximately 19,500 people and reported annual revenue of about $5.9 billion.
Its American operations were conducted through OSI Industries and other subsidiaries, including poultry producer Amick Farms. OSI operated processing facilities in several states and had developed into one of the largest privately held companies in the United States.
China Food Safety Investigation
International attention focused on OSI in July 2014 after Chinese regulators closed its Shanghai Husi Food processing facility.
A television investigation alleged that employees at the facility handled expired products improperly and processed meat that had fallen on the floor. Products from the facility had been supplied to major restaurant companies, including McDonald’s and KFC.
Chinese authorities detained five individuals connected with the operation during the investigation. OSI subsequently recalled products manufactured by Shanghai Husi and publicly addressed the food safety concerns.
Labor Complaints in the United States
The China controversy was followed by renewed attention to employment practices at OSI’s U.S. operations.
Over a period of approximately 15 years, former employees brought several lawsuits alleging violations of employment protections, particularly the federal Family and Medical Leave Act. Some employees alleged that they were pressured to return to work following injuries or experienced adverse employment actions after requesting medical leave.
One case involved Amick Farms employee Ysrael Julien, who alleged that he was terminated after remaining away from work on his doctor’s instructions while recovering from injuries sustained in a car accident. OSI later stated that additional information revealed miscommunication surrounding the termination and that the parties were working toward resolving the dispute and returning Julien to employment.
Another former Amick Farms worker, Anthony Haupfear, alleged that he lost his position after suffering a wrist injury while working at the company’s poultry facility. His lawsuit was ultimately dismissed without prejudice.
Former OSI employee Carla Washington separately filed a lawsuit alleging that she was not restored to her previous position after returning from maternity leave and was later terminated. Her lawsuit was dismissed with prejudice in 2001.
Other former workers also publicly alleged that employees were pressured to continue working despite injuries. These accounts represented allegations by employees and did not necessarily result in findings that OSI violated federal law.
OSI Group’s Response
OSI disputed allegations that improper labor practices represented company policy and maintained that its facilities were expected to comply with employment, food quality and safety requirements. The company also indicated that individual failures to follow established policies would be investigated and corrected when identified.
The controversies therefore involved several separate matters rather than a single legal proceeding. The 2014 China incident centered on food safety practices at Shanghai Husi, while the U.S. cases involved individual employment disputes and allegations concerning medical and family leave at different OSI-affiliated facilities.