June 28, 2013
Will Immigration Reform Benefit Retail?
The Senate on Thursday passed an immigration reform bill that sets the path to citizenship for some of the estimated 11 million illegal immigrants in the U.S.
The bill, which moves to the House for passage, would expand the federal E-Verify program nationwide, requiring its use by all U.S. business owners to check the immigration status of all new hires within four years. The bill includes increases in work visas for foreigners who work in the agricultural industry, as well as the creation of a new class of visa to cover lower-skilled workers in construction, retail, hospitality and insurance.
According to an often-quoted 2009 study by the Pew Hispanic Center, unauthorized immigrants make up 5.4 percent of the nation’s workforce and about 10 percent in Arizona, California and Nevada.
Based on an analysis of 2008 Census Bureau data, the study found one in four farmworkers in the U.S. are undocumented immigrants; 19 percent of building, groundskeepers and maintenance workers; 17 percent of construction workers; 10 percent of production workers and seven percent of transportation and materials moving personnel. In foodservice, illegal immigrants made up 20 percent of the nation’s chefs, head cooks and cooks and about 28 percent of dishwashers.
As far as hiring to work traditional retail, the study offered little insight. A 2007 study from the Fiscal Policy Institute placed undocumented immigrant workers at 12 percent of retail sales persons in New York City.
Observers have said businesses hiring illegal immigrants benefit by tending to pay lower wages and by avoiding payroll taxes.
But the bill is also designed to prevent abuses. Last week, federal authorities seized 14 7-Eleven stores in New York and Virginia for hiring dozens undocumented workers. The workers — hired through stolen identities stolen from American citizens (some children and some dead) — reportedly worked up to 100 hours a week for a fraction of the promised pay. They were also squeezed into over-crowded dwellings owned by the c-store operators. Arrests were made and property seized.
On Thursday, The National Council of Chain Restaurants, a division of the National Retail Federation, applauded the Senate’s passage of the immigration reform bill while holding reservations about specific elements of the employment verification framework adopted by the Senate.
"NCCR has long-advocated for sensible immigration reform and today’s vote is a significant step towards that goal," said the group’s Executive Director Rob Green in a statement.
- Senate Approves Overhaul of Immigration Laws – The Wall Street Journal (sub. required)
- Senate Passes Immigration Overhaul – The New York Times (tiered sub.)
- A Portrait of Unauthorized Immigrants in the United States – Pew Hispanic Center
- Working for a Better Life – Fiscal Policy Institute
- U.S. Seizes 14 7-Eleven Stores in Immigration Raids – The New York Times (tiered sub.)
- Immigration Crackdown Steps Into the Kitchen – The New York Times (tiered sub.)
- National Council Of Chain Restaurants Applauds Senate Action On The Immigration Reform Bill – National Retail Federation
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Recent Discussions
Discussion Questions
How will possible passage of the immigration reform bill affect retailers and restaurants? To what degree is retail exposed to undocumented immigrant hirings, whether directly or through third-party partners?
Poll
Passage of a sound immigration reform bill will greatly benefit retailers and the country, as a whole.
The Senate bill is loaded with “Christmas balls,” as Harry Reid & company loaded it up with candy for special interests. The opposite side of the aisle has pushed too strenuously to foster a “Berlin Wall” that will be ineffectual and insulting over time. It’s unclear whether Reid wants a reformed immigration policy, of if he is only choosing to play politics. The House needs to pass its own version, and then sort matters out in conference.
Immigration needs to focus on skills and investment first and foremost. A smaller portion of the reform should weigh in on family. The U.S. has not had useful immigration changes in over 45 years. Now is the time to take the right steps.
BIG government has to make certain that they don’t drag retail backward with excess regulations.
Retailers will be able come out of the shadows in terms of hiring, they will find themselves on a level playing field, proper taxes and social security will be paid, increased wages will be earned by the workers, and employee turnover will be reduced, if this bill is ironed out properly.
Undocumented workers hurt the nation as a whole. Employers may be getting a “deal” but bringing down national wage averages only hurts the economy, as well as steals much needed tax dollars. The passage of immigration reform will hopefully allow less of these type of employment arrangements to be made.
Retail is similar to the food-service industry with low-paying wages, so the reform bill would possibly have an effect on those hirings. I cannot imagine large retailers risking the hiring of undocumented workers for fear of exposure like we saw with 7-Eleven, although those were independent.
The vast numbers of oversized governments within the USA starving for revenue are turning to the millions of supporters they are sworn to rescue from depravity and isolation. The federal government did not open forced taxation just to the 11+ million of illegal immigrants now hiding in our streets, they included 40 million more that can now join their lost family members. I am amazed at the governments’ cunning in developing a plan to increase and steadily grow tax revenue and domestic sales for the foreseeable future at the very least.
Since labor wages and benefits for the new class of American society people are not governable, the nation’s GNP costs will go down or remain the same at best with a constant influx of competition (low price laborers) now assured. At the very same time I anticipate profits from many directions will surge. With all of these new consumers and tax dollars at little or no cost to the citizens, how can anyone lose? What a great day for America and freedom. Or so the story goes.
Gee, I thought immigration issue was “solved” in 1986; guess not. But not to worry, it will be fixed THIS time…right?
Anyway, retailers like to pay low wages, but don’t like it when customers—aka: someone else’s employees—don’t have any money to spend. (A situation which, of course, we got around for years by having people borrow.) Exactly how this will work out—i.e. whether the latter (revenues) will be helped more than the former (expenses) will be hurt—I don’t know.
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Passage of a sound immigration reform bill will greatly benefit retailers and the country, as a whole.
The Senate bill is loaded with “Christmas balls,” as Harry Reid & company loaded it up with candy for special interests. The opposite side of the aisle has pushed too strenuously to foster a “Berlin Wall” that will be ineffectual and insulting over time. It’s unclear whether Reid wants a reformed immigration policy, of if he is only choosing to play politics. The House needs to pass its own version, and then sort matters out in conference.
Immigration needs to focus on skills and investment first and foremost. A smaller portion of the reform should weigh in on family. The U.S. has not had useful immigration changes in over 45 years. Now is the time to take the right steps.
BIG government has to make certain that they don’t drag retail backward with excess regulations.
Retailers will be able come out of the shadows in terms of hiring, they will find themselves on a level playing field, proper taxes and social security will be paid, increased wages will be earned by the workers, and employee turnover will be reduced, if this bill is ironed out properly.
Undocumented workers hurt the nation as a whole. Employers may be getting a “deal” but bringing down national wage averages only hurts the economy, as well as steals much needed tax dollars. The passage of immigration reform will hopefully allow less of these type of employment arrangements to be made.
Retail is similar to the food-service industry with low-paying wages, so the reform bill would possibly have an effect on those hirings. I cannot imagine large retailers risking the hiring of undocumented workers for fear of exposure like we saw with 7-Eleven, although those were independent.
The vast numbers of oversized governments within the USA starving for revenue are turning to the millions of supporters they are sworn to rescue from depravity and isolation. The federal government did not open forced taxation just to the 11+ million of illegal immigrants now hiding in our streets, they included 40 million more that can now join their lost family members. I am amazed at the governments’ cunning in developing a plan to increase and steadily grow tax revenue and domestic sales for the foreseeable future at the very least.
Since labor wages and benefits for the new class of American society people are not governable, the nation’s GNP costs will go down or remain the same at best with a constant influx of competition (low price laborers) now assured. At the very same time I anticipate profits from many directions will surge. With all of these new consumers and tax dollars at little or no cost to the citizens, how can anyone lose? What a great day for America and freedom. Or so the story goes.
Gee, I thought immigration issue was “solved” in 1986; guess not. But not to worry, it will be fixed THIS time…right?
Anyway, retailers like to pay low wages, but don’t like it when customers—aka: someone else’s employees—don’t have any money to spend. (A situation which, of course, we got around for years by having people borrow.) Exactly how this will work out—i.e. whether the latter (revenues) will be helped more than the former (expenses) will be hurt—I don’t know.