DISCUSSION

Will Immigration Reform Benefit Retail?

Written by Tom Ryan

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.

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