Tnuva, Israel’s largest dairy company, said it will not renew its contract with its Brooklyn distributor, which is accused of underpaying workers and firing employees illegally.
A campaign by organized labor and Jewish groups had urged Tnuva to break from Flaum Appetizing, which distributes the Israeli firm’s cheese in the United States and also produces hummus.
The National Labor Board ruled in 2009 that Flaum abused workers by paying them below minimum wage without overtime and firing workers who complained about workplace conditions.
The ruling ordered that Flaum pay $270,000 in restitutions. Flaum has appealed, arguing it is not obligated to pay back wages to undocumented immigrants.
In June, a nationwide boycott of Tnuva’s goods in Israel prompted the food company to reduce the price of cottage cheese by 20 percent. The boycott spread into a broader social protest in Israel against economic inequalities.
— jta