McDonald's Bun-Supplier Loses 35% Of Staff To Immigration Raids

Tyler Durden's picture

President Trump has made it widely known that he will not tolerate sanctuary cities like Baltimore, Chicago, Los Angeles, and New York. Since taking office, he has threatened to slash federal funding to cities who do not comply with federal immigrations laws, along with ICE agents circumnavigating local authorities in a nationwide federal operation to arrest undocumented immigrants.

In the latest immigration raids, ICE agents targeted a Swiss supplier of hamburger buns for McDonald’s Corp., who said it’s Chicago bakery lost 35% or about 800 of its workers at the Cloverhill Plant.

The company is owned by Zurich-based Aryzta AG, who makes baked products for fast-food chains and supermarkets.

ICE agents pinpointed the Chicago bakery after its job placement agency went under federal investigation earlier this year.

Kevin Toland, Chief Executive Officer of Aryzta said on a call with analyst, “it’s proceeding very, very slowly because it’s like having a brand new factory and a brand new workforce. That’s presenting a lot of challenges, as you can imagine.”

According to Bloomberg, President Trump’s immigration raids are a major headache for U.S. companies who employ undocumented works. The challenges that Aryzta faces are likely to cause short term economic pain for the company, but on the longer end could cause its end products to increase prices directly impacting the consumer.

The raid on workers at Cloverhill is one of the biggest U.S. employment headaches reported by a European company so far as President Donald Trump has made curbing undocumented immigration a centerpiece of his presidency. Aryzta said it faces challenges in retaining staff in the U.S. and pressure to raise wages.

For employers, the loss of illegal immigrants can be expensive. Training a new workforce of American hires can increase the cost of labor and certainly cut into margins.

But in Cloverhill’s case, the cost of labor is relatively inexpensive not because of the illegal immigrants, but each of their factories (2) have highly automated production lines that involve minimal human interaction. Future wage pressures are not expected to threaten profitability too much due to automation, but in the intermediate timeframe a severe loss in margins is due to volume loss.

 

According to RT, the Chicago Immigration Court has never been busier since President Trump entered office. Across the United States, there are an estimated 11 million illegal immigrants, which signals immigration raids are just getting started.

The Chicago Immigration Court has 24,844 pending cases in its system as of this spring, according to the DOJ’s Executive Office for Immigration Review. That is up from 13,000 pending cases in 2010. Nationally, the pending caseload has doubled since 2011.

 

According to EOIR, total orders for removal between Trump’s inauguration and the close of the fiscal year hit 63,634. At the end of fiscal year 2017, some 1,940 people were detained in Chicago, up from 1,669 at the end of the prior year. Most of them are of Mexican descent, statistics show.

 

The Trump administration set in motion sweeping changes in how the federal government dealt with those living in the US illegally. It is estimated there are 11 million immigrants living the US without legal status.

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Dun_Dulind's picture

As Mr. Burns would say, "Excellent!"

11 million more to go.

Slippery Slope's picture

The buns were the only edible part of their burgers

hedgeless_horseman's picture

 

I am surprised they don't have a waiver like McDonald's does for Obamacare.

Bigly's picture

This is outrageous. 35% of that plant was illegal. Shut it down. Fine the hell out of the company.

It's one thing with strawberry pickers and tobacco fields. Another if 1/3 your plant is illegal. I refuse to believe Americans will not work at a bakery.

Flush it.

RafterManFMJ's picture

They clearly knew. Yet none ever go to jail from the C-Suite....Wonder if YOU’LL go to jail deal ‘hedger if you do something illegal?

They cash out on cheap labor for years and you get a cage.

overbet's picture

Those jobs are now available for Chicago's uneducated unemployed population. How can a liberal not like this progress?

gatorengineer's picture

This is where Trumpy could actually do some good.  He should call for a boycott of McDonalds until they take action.

Then ICE needs to raid a Scamazon supplier rinse and repeat...

Luc X. Ifer's picture

I know that this is gross extrapolation however based on the numbers reported when this type of events occur it seems that always the rate of illegal immigrant workers is in the range of 1/4 to 1/3 - that's scary shit. Practically the gut instinct says that 1 in 3 to 4 low pay range in US is not an American citizen. Now, that is a force salary dumping wise and would explain why America is falling in powerty together with the export of good jobs.

Mr. Universe's picture

The number stays the same, the explainations change but the magic number does not.

It is estimated there are 11 million immigrants living the US without legal status.

I call BS. The numbers are far greater than we have been told, and they know it.

Luc X. Ifer's picture

Well, at least empirically it seems so. Like America was silently occupied and middle class wealth sucked.

Déjà view's picture

1986 Immigration reform and control act with amnesty was to solve THIS issue?
WHAT HAPPENED?!

Just tip of 'ICE' berg...full speed ahead!

Luc X. Ifer's picture

Empirically this looks like a slow silent occupation by the left fascism aka communism. What America was in the open scared in the 70s and 80s came to fruition. Once the idiot greedy capitalist oligarchy started to screw up the population they opened the door to communism. Good job America you shot yourself in the food due to greed induced idiocy.

Mr. Universe's picture

"They just want to work and provide for their families" is what I was always told.

However our government in all their wisdom has decided I need to pay for it.

Protesting this fact in California will get you labeled as a "freeloader" by our governor.

Luc X. Ifer's picture

Because that's what you do in communism - you divide and reign by manipulating the more numerous masses into seeing the less numerous middle-class as the oppressive bourgeoisie.

JimmyJones's picture

If they are working and making a living how will they show up at the protest? 

NoPension's picture

....but Mr. Lincoln....without slaves, how are we supposed to be economically viable?

ali-ali-al-qomfri's picture

'Over 1 Million Served, subpoena's.'

H H Henry P P P Paulson's picture

They're the biggest fast food business so they always receive all the flack, but I think their food tastes great.  It's the ones cooking it that make the difference.  You have careless teenagers running the fryers and skipping upkeep on the fountain machines and yes it'll all taste like shit.

Billy the Poet's picture

s immigration raids are a major headache for U.S. companies who employ undocumented works.

 

Shouldn't those who did the hring face a bit more than a headache?

Bush Baby's picture

That's 280 jobs available for Citizens currently kicking back on welfare.

Now deport them and send a bill to their native countries for legal fees, shipping and handling!!

 

Theosebes Goodfellow's picture

~"Training a new workforce of American hires can increase the cost of labor and certainly cut into margins."~

Boo-fuckin'-hoo. This is very bullish for American workers who are now at a premium. Maybe the bunmaker will pay living wages to Americans for a change.

Son of Loki's picture

It's beginning to look alot like Christmas!

Evan Wilson's picture

I agree.

I am SURE that the people here legally are all as upset also, especially since they end up with lower wages because of the extra labor competing for their jobs.

/sarc

On a serious note: I do feel bad for the people who have little choice but to resort to work under these conditions, since I am sure they are not treated well; however, I do NOT feel at all bad for the companies that take advatage of the situation and use it to drive down labor costs for people at the lower wages.

legalize's picture

but on the longer end could cause its end products to increase prices directly impacting the consumer.

So wait... not only were they hiring illegal immigrants, they were paying them less than minimum wage?

Otherwise, except for the cost of hiring replacement workers and training them, the cost of the product should remain the same.

We don't know that these are jobs "Americans just won't do" because their hiring company went straight to illegal immigrants instead of even attempting to hire american workers.

johngaltfla's picture

A bun shortage?

Did anyone tell Matt Lauer yet?

Evan Wilson's picture

While it is not clear from the article, I would not be surprised if they were working some overtime and not being paid for it. Even with US employers, at the lower levels of income, there is a constant "I want the work done, but I don't want anyone getting overtime" thing going on.

 

 

Ted19731950's picture

So many of these companies go straight to illegal labor.  Like the beef and chicken processing plants etc etc.  Lampposts.

HardAssets's picture

Look out for the robot burger flipper army next. They can even be programmed to understand English.

Peak Finance's picture

Yea it does taste great!

I love the "Tart Notes" in the produce from the pesticides,

and the "Crispness" of the vegetables from spraying the round-up on the crop as a "finisher" 

But, my oh my, the HFCS really add the best flavor! 

IntTheLight's picture

Their food tastes great. OMG. Even frozen White Castle burgers, available at Walgreens, are far tastier. For fast food, try Portillos. Yummy.

Peacefulwarrior's picture

Moved to the debate below... Bigger topic than just throwin guys out..IMO

Cynicles II's picture

I know a junk dog that eats everything...except a Rotten Ron's burger. Very telling.

helloimjohnnycat's picture

Good one, but I'm still not buying.

Fuckking Jews, worthless niggers, & fucking worthless fast food ruined America.

whatswhat1@yahoo.com's picture

"The buns were the only edible part of their burgers"

 

Not even close. 

I discovered a bun in the trunk of my car that was an inhabitant for ten years or more.

There was no discernible difference between the "trunk bun" and one that was baked fresh that day.

No mold or any other nasties in sight.  Same exact color as a fresh bun.

The only difference was that the "trunk bun" was as hard as a hockey puck.

I fed it to the squirrels.  They munched it with haste.

Potato Farmer's picture

Like anybody should be eating that crappy food anyways.

vealparm's picture

I've always thought that McDonalds buns have a slightly weird/off taste. Buy a burger sometime, scrape everything off of it, wrap it up and take the bun home. Then taste it side by side against a normal bun from an 8-pack bought at a supermarket..............totally different.

I guess there is a reason they will never mold, even after years.

Mazzy's picture

"11 million more to go."

That number has been repeated so many times it is an obvious falsification (like another quite famous number we all keep hearing about reported to be a little over half that). 

They were claiming that number back when I was in highschool, and I'm about a decade and a half removed from that.

The real number is easily 25-30 million, and if we include Anchor babies can we reliably say that it's around 45-60 million?  Keep in mind....the Census ain't exactly accurate.

helloimjohnnycat's picture

The other number wouldn't happen to begin with a 6, would it ?

 

shankster's picture

There are 11 millions alone in Texas..easily that many.

Billy the Poet's picture

You deserve a break today, so get up and get away to America.

Canadian Dirtlump's picture

In other news, they've been using the airborne dispersal of job applications to break up violent gang episodes and packs of unemployed teenagers hanging out.

Chapulin Colorado's picture

Looks like higher paying jobs for more Americans... What am I missing?

swamp's picture

There are 11 million in California alone. Or more.
100+ million nation wide.

shankster's picture

Easily that many in Texas and close to that number in Florida.

shankster's picture

About 30 million more to go and that's just the Mexican illegals.

truthseeker69's picture

Only a fucking moron thinks more expensive labour is better for the economy. 

 

 

shimmy's picture

"In the latest immigration raids, ICE agents targeted a Swiss supplier of hamburger buns for McDonald’s Corp., who said it’s Chicago bakery lost 35% or about 800 of its workers at the Cloverhill Plant."

 

It is ITS, not it's. Hey ZH, get a new writer(s) since this person(s) now writing sucks.