MILWAUKEE -

Federal labor officials said Milwaukee based-Palermo's Pizza did not manipulate an immigration audit as retaliation for workers' efforts to form a union.

Voces de la Frontera had filed a complaint with the National Labor Relations Board. The immigrant-rights group has been trying to organize workers there.

Irv Gottschalk, head of the Milwaukee NLRB office, said Wednesday he did find merit to the group's claim that when workers went on strike June 1 they were threatened with losing their jobs. He said Palermo's has expressed interest in working out a settlement for that.

Voces' de la Frontera said they were glad for those NLRB's findings but disappointed about the other complaint. They plan to appeal to the NLRB in Washington, D.C.

Palermo's said it was a major victory that vindicates Palermo's.