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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Dutti's picture

This writer is probably an illegal immigrant, or writing from a foreign country - cut him/her/it some slack!

Billy the Poet's picture

Neither his nor hers has an apostrophe and therefore neither should its. That's the easy way to remember that one.

Midas's picture

It's is short for it is.  It is a contraction.  All contractions have apostrophes.  The other use (as a possesive) doesn't have an apostrophe.  That is how I remember it, but I am not a professional journalist.  Hold on while I contact Matt Lauer's replacement.

Mazzy's picture

Does the Chicago bakery **belong to** the Swiss company?  If so then the correct usage would be to have the apostrophe.

Billy the Poet's picture

Definition of its
: of or relating to it or itself especially as possessor, agent, or object of an action

going to its kennel

a child proud of its first drawings

its final enactment into law

https://www.merriam-webster.com/dictionary/its

azusgm's picture

It's is a contraction of it is, not a possessive pronoun.

any_mouse's picture

"It's" == "It is"

"Its" == "It owns"

You're going back to your Star Mazzy.

MEFOBILLS's picture

Not only sucks but stupid:

 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

 

sorry about the bold, It won't turn off.

 

The overall cost of immigrant labor is HIGH, because of social costs.  Do the math, if Maria shits out 10 kids at X dollars, then sends each kid to skooooool, for X years = X dollars.

Those X dollars add up into the millions.

I'll pay a few dollars more for BUNS made by American's.... thank you.   Send them back to their "home" country.

Finance Capitalism requires one to accept lies like "American's won't do that job."  Bull Shit, pay workers appropriately.  Removing the invaders will actually help fix the economy.

Plenty of countries get along just fine with "mexicans" or "muslims."  China will not immigrate anybody unless they have a skill China does not.  Japan is doing fine despite their demographic inversion.

Don't listen to ((shiboleths)) from our friends, especially with regards to the need for "workers."

FX223's picture

Stay on mandate!

b-sugar's picture

it’s Chicago bakery lost 35% or about 800 of its workers at the Cloverhill Plant.

*illegal workers
thecondor's picture

YOU HAVE TO GO BACK.  

vealparm's picture

"Pack your bags you fucking border jumpers."

Peacefulwarrior's picture

If they're frickin workin and adding to GDP give em a green card and fine the company a specified amount to pay for Elliott Ness's visit and the paperwork involved. If they are dealing illegal drugs, stealing and/or planning terrorist activity toss em the "F" out...

Kidbuck's picture

Yeah, they are just innocent working folk who jump immigration lines, suck up welfare benefits, and teach their extended families to do the same.

Peacefulwarrior's picture

I agree but gonna continue to happen...Let me post this down here.

Exactly... The other issue that not to many like to address (Or Ignore) is there is a 2nd tier "illegal" working economy composed of lower wage shift workers that are "GLADLY" providing a necessary price component service so that idiots on the dole can afford to buy a Big Mac and Fries at the current price point. If this isn't addressed properly with immigration processing and group minimum wage negotiation based on cost structures not politics, then expect major spikes in certain imput costs...

swmnguy's picture

That point is usually (deliberately) missed,

I noted the paragraph that began, "Kevin Toland, Chief Executive Officer of Aryzta, said on a call with analyst..."  So, Mr. Toland was calling from jail?  Right?

Oh, no.  Mr. Toland was telling an analyst how inconvenient it was to get his operation back up and running with a third of his seasoned employees gone.

So, we're not serious about this at all, on a policy level.  In fact, the empty gestures toward getting rid of workers illegally here are meant only to increase the downward wage pressure on those illegals, and on the perfectly legal people here in the USA who are having the wage floor held down by illegals.

How is all this shit so cheap?  How can I buy avocadoes in the supermarket in Minneapolis in January for a buck or two?  I couldn't mail one back to California or Mexico for a buck or two.  So it's a fair market price to grow, pick, and transport the thing, selling it a few times along the way and generating a profit each time or nobody would keep doing it, and it still only costs me $1.99 at most?  How is that possible?

It's only possible if energy is extremely cheap for the transportation, and the labor to handle it is so cheap it can't possibly be legal.

The other part of the legal immigration and employment discussion is that wages, and therefore prices, have to go up a lot in America.  You can't have people working full time who still qualify for welfare and the answer is not to slash the requirements for welfare.  People who work should be able to have decent lives, for Christ's Sake.  That's the fucking American Way.  Blackmailing slaves is not the American Way and fuck the evil bastards who continue to do it.

The fact that all public proposals and law enforcement actions leave CEO Toland free and in his job and living pretty nicely, while ramping up pressures on illegals from 3rd World hellholes who only came here to get work and a comparatively better life for themselves and their families is evil, and proof that we don't really care about the legalities or moral considerations at all.  Human life for sale, is the new American Way apparently; same as it used to be before we had a moment of clarity.

Billy the Poet's picture

When you decree that every job must be a high paying job you make it illegal for young and inexperienced people to work. You're intelligent enough to know that many people are unable to generate $15 dollars an hour, for example, and that therefore no one will ever hire them if wages were to be set at such a rate.

On a separate note the best way to get fresh vegetables in the spring, summer, fall and winter is to grow them yourself.

Peacefulwarrior's picture

Now throw in the current deflationary economic cycle and Alice in Wonderland  accomodative distortion (which includes forcing minimum wage to unsustainable levels to manage cost of living for the worker and not the businesses ability to pay) and you get this... props made outta paper mache instead of letting businesses succeed and fail on merit. Too late now tho.. Just ask any of the guys running big banks and companies over a beer and they'll tell you no other way but MOAR...

Xena fobe's picture

Deflationary economic cycle?  Except for the goods and services people use.  Like food, gas, housing, health care, education, communication, transportation. 

swmnguy's picture

Who said anything about $15/hr., or young and inexperienced people?  I'm talking about adults, head of household, who work 40 hrs. a week and far more in many cases at multiple jobs, who can't afford to live decently.  You know that too.

Look, if there's no way in our current system to accommodate all situations, let's work on that.  Let's not use that as an excuse to overlook criminal activity by employers, designed to artificially and by dishonest means put downward pressure on wages, to pay less than the market would bear because illegals won't complain and legals will.

Let's don't conflate issues and excuse criminal exploitation.  Different issues. 

Billy the Poet's picture

I know that no business can operate successfully if its pay rate is based on niceness rather than on performance.

If I'm wrong consider this. I am an adult. I will perform negligible labor for you if you pay all my bills. Do we have a deal?

Utopia Planitia's picture

That is precisely the filthy underbelly of the progs constant diatribe about "jobs no American will do".  People starting to work need a place where they LEARN how to produce and by definition are generating value at a low level.  If I have to pay you $25 (or whatever) to produce $10 of product or service why would I bother?  Then when your son/daughter can't get a job because they have never had one you should go right to the progs and THANK THEM for turning your kid's world into a fetid toilet bowl.  Because that is what they have done, BY DESIGN.  They WANT this situation to exist so they have a new crop of DEPENDENTS.  This is all by design.

Many +1 for you sir!

Billy the Poet's picture

There is an insidious power at work. They've been so successful in undermining family and culture that there are mothers out there who actively encourage their children to mutilate their genitals just because some people on TV and the Internet said that it's a nice thing to do. On the other hand I suppose that such a fate is better than that which befalls one out of six children conceived in this country -- a summary death sentence executed on the basis of protecting so called femininity.

Not to ramble, but I've been thinking lately about how many of our societal problems come from the anti-social public school system. Children are no longer raised as part of a community. They experience life as members in a cohort of similarly aged individuals with whom they are forced to interact with for over a decade. How can such a system  prepare anyone for real life?

Xena fobe's picture

Retail cost has no relationship to operating costs.  Especially so where there is little competition.  This is also true for outsourcing.

And taxpayers and society in general make up for whatever costs a company saves by hiring immigrants.  Immigrant labor is an indirect subsidy to the wealthy.  Paid for by the poor.

You thought corps passed savings along to consumers?  They hire illegals to save us money?

Mazzy's picture

The cost to the welfare system, hospitals, police/jail/courts and schools does NOT contribute to our overall benefit.  Sorry bud.

So-called "economists" can shove some GDP up their asses; that is not a measurement of well being or social cohesion.

shovelhead's picture

Its really not a measure of anything. If I burn my house down and rebuild it, did that add to GDP?

They say it does. How stupid is that?

SDShack's picture

Yep, just like soaring 0zer0care "costs" add to total GDP. Nevermind we all have to spend more on healthcare which means spending less on everything else in a world of stagnant or falling real wages.

any_mouse's picture

It's all good. Increase GDP by any means necessary.

lincolnsteffens's picture

The best way to stop illegal immigration is to fine or short term imprison the ones responsible for hiring them. This is a much more effective way to reduce it with large group roundups like this. Make the owners or the ones pay an unpleasant price enough times and others will get the idea maybe they should only hire people that have a right or permission to work.

I feel very sorry for the ones who get booted out  but I feel worse for the effect on the American worker. If you have to injure your country to make a profit then you don't deserve to have enough customers willing to pay a higher price.

TheMayor's picture

NO, they are not, they are voting illegally, stealing benefits illegally, getting healthcare illegally and I pay for it.

Next time, round them up and get a machine gun!

E.F. Mutton's picture

By coincidence, they also lost 35% of their Dem voters.  But only the living ones.

HardAssets's picture

Nah, they lost more than 35%. They vote more than once.

TheSilentMajority's picture

You will see a sudden stop in illegals only when the owner or “boss” goes to jail for hiring illegals.

It’s a crime to hire illegals, enforce it.

Mazzy's picture

And not just the managers either, the real fucking owners of these shitshows.

j0nx's picture

$10,000 fine per head oughta do it. Make an example out of these fucks. It’s preposterous that I’m still railing about this topic 11 years later after it first started becoming a major problem in this country. How is it racist to want to enforce your borders and prevent foreigners from lowering the standard of living for fellow Americans? Answer: it’s not.

swmnguy's picture

The foreigners aren't "lowering the standard of living for fellow Americans."  I don't see them holding a gun to management's head and demanding wages so low American citizens can't afford to take the jobs.

You're confusing cause and effect.  The employers are using the foreigners and their desperation and vulnerability to abuse as an excuse for abusing them.  That doesn't exonerate the employers; it makes it worse.  It's like saying it wasn't your fault you robbed the old lady because it was so easy to kick her ass and take her purse.  It's not the old lady's fault.  It's not the foreigners' fault.  If they weren't hired up eagerly by employers looking to pay sub-par wages and provide unacceptable conditions, to increase their profits, this conversation wouldn't be happening in the first place.

Billy the Poet's picture

A real investigation should be done and those who did the hiring and any superiors who had knowledge should be prosecuted but there's no point in chasing shareholders if those individuals had no knowledge. Any fines against the company would impact shareholders, of course, which is fine.

effendi's picture

Jail for the bosses who intentionally hire illegals is an option. So is fining anybody employing illegals (intentionally or not). Could be a small fine (or a warning) for a first offense for unintentionally hiring an illegal, but for those who hire big groups of illegals (like a corporation hiring 800) then the fine should be enough to really make head office fire some HR managers. Make it 10 grand fine per illegal and employers will check a workers right to work status. Perhaps also bill the employer for any costs of locking up the illegal, and their deportation costs. Do it right and ICE will become self funding.

Jason T's picture

Keep them honest.

It's noble.

my new username's picture

Microchip the illegals on the way out.

Swamp Yankee's picture

Keep'em comming!

 

I'll pay an extra buck a burger to have our laws enfored.

 

I am weary of being a second class citizen in my on country.

Mazzy's picture

Oh no, does that mean your Monsanto approved, salt-laden, greasy fat filled BaconMcWhopperWhateverthefuck is going to cost $1.10 now instead of $1.00?

just the tip's picture

don't worry, the coal tar used to make your flavored bottled water will not be affected by this action.

Wilcox1's picture

Why is this written from a slant that getting illegals out hurts the company? Fuck the company. Hire AMERICANS, train them, pay them well, and continue to do business with US(A). 

WillyGroper's picture

pardon the pun, but the bun?

rofl, the hits are non-stop today.

pitz's picture

Proper immigration raids on many SV tech companies, including some of the biggest and most well known names would have similar results.  Nearly all H-1B visas issued over the past 15-20 years have been tainted by fraud.

venturen's picture

Imagine what a great country we would have if we followed the law? The last miss was rescuing the corrupt banks...they should have been allowed to fail. Knowingly hiring illegals should be $100k fine...per employee  and a year in jail for the person that hired them!