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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venturen's picture

Why is following the law so hard for Democrats?

Dickweed Wang's picture

It's not just the demonrats.  The repubes are just as guilty as them in bowing down before the big corporations when it comes to their getting cheap labor via illegal immigration.  That's why asshole RINO's like John "Songbird" McStain and Lindsey "reach around" Graham are all for amnesty and other illegal immigration bullshit.  They're all fucking TRAITORS!!

BorraChoom's picture

Because they are not Republicans. Flip a coin both parties are corrupt.

buzzsaw99's picture

hasta la vista

baby

Mena Arkansas's picture

The CEO should be jailed like any american who hires illegals. Give them time to reflect on their hiring policies.

This appears to be the perp right here.

http://www.foodbusinessnews.net/articles/news_home/Business_News/2017/06...

just the tip's picture

mcdonald's buns, biscuits, muffins, etc. used to all be made at the hostess bakery on 11th street in tulsa.  i used to love driving by that place.  say what you will about the chemicals, they sure smelleded gooooooood.

union voted themselves out of a job.

shovelhead's picture

Lol.

The new Trump-Burger...All meat, no bun.

GRDguy's picture

Perfectly illustrates New World Order.   Swiss owned company using "mostly" Mexican labor to supply an American company doing business internationally.

Rex Andrus's picture

and "Swiss" means offshoring profits come tax time. Fucking kill them all.

MuffDiver69's picture

Worth my vote all over again..

Boca's picture

most illegals have forged papers, as a hiring manager you ask if they are citizens, they say yes, then you make a copy of their SS card and hire them.  

Berspankme's picture

I had an operation in Laredo a while back. My manager there(Mexican-American) told me he can get a social security card and ID in Nuevo Laredo for $35.00 and have it tomorrow.

all-priced-in's picture

Forged papers? Really it is almost always just a SS card - you make it sould like they have a whole folder full of documents.

 

Any HR person worth a shit that wants to spot illegals can do it about 99% of the time - but if your goal is to just follow the letter of the law and hire a bunch of illegals then you can do that too.

 

We aquired a company in California - I was totally against it - I spent 3 days there evaluating the company -

 

I got there around 6:00 AM - by 6:30 I already knew they had dozens of illegals on the payroll - but then I don't have my head up my ass.  

 

We aquired them anyway -  we bought just the assets and customer contracts - not the corporation itself - but agreed to hire all the employees that could pass our procedure.

 

Day 1 - myself and an HR person from corporate started interviewing people - out of the first 25 we talked to - 15 had the same SS number.

 

When it was all done - out of the 250 employees only about 50 were legal - my boss says - why did we buy this place? I said I TOLD YOU 10 times that they had a bunch of illegals - you wouldn't listen.

 

You say you are a hiring manager - if that is true you must not be very smart - or don't give a fuck - or both.

 

 

 

 

 

effendi's picture

So the HR manager accepts forged papers/SS card and there is no way he can verify if they are not genuine? Sounds like they are either incompetent or just want to have a figleaf of pretending to follow the laws requiring verification of a workers right to work while hiring illegals.

just the tip's picture

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.

this paragraph is either bullshit, or the entire article is bullshit.  if hiring illegals is not going to significantly influence the bottom line, why hire them in the first place?  risk.  reward.  ok, illegals will not form a union.  i can see that.  maybe they do have a union.  the keepquiet 4782 union.

Nobodys Home's picture

The place must be huge!
Highly automated? 800 employees basically a third...meaning 2400 employees in a highly automated facility. Shit!

Or, is this hype? Most factories have been automated for years...That's what factories are. How many days since the last accident?

JoseyWalesTheOutlaw's picture

Hard to MAGA when all the companies are fuking crooked 

Fine those bastids until they're broke

 

BorraChoom's picture

Money talks and BS walks, I think We have a long walk bro!!

Dumpster Elite's picture

Question: How the fuck do a single one of these illegals get hired?????? Over 30 years ago, not only did I did I have to produce my driver's license AND SS Card, but I also had to piss IN FRONT OF a nurse, because it was the height of the "Drug Problem" in this country and they didn't trust anyone. Now, I guess you don't even have to speak English, or do any background check of any kind! Also, HOW are these businesses NOT being fined, or closed up, for obviously hiring these illegals???????

any_mouse's picture

Slap on the wrist fine (aka protection money) and no admittance of wrong doing.

Same as the deal the bankers get.

I like how the article boils it down to either hire illegals or raise prices.

Nothing about employing legals to do the work at a decent wage and thereby adding something of lasting value to the Community.

And it's a fucking Swiss corporation!

BorraChoom's picture

Open a food processing company in America and the US State Department, at taxpayers’ expense, will provide you with cheap and compliant refugee labor and others with worker visas (and eventually the R’s will cave and grant amnesty to additional migrants)! American taxpayers will educate their kids and supplement their wages with healthcare/welfare/food stamps etc.  When citizens complain, get the do-gooders to call them racists and haters.  What a business model!

any_mouse's picture

Illegals have rights!!!

You NAZI!!!

BorraChoom's picture

Thanks Mouse, These Evil MoFos have more rights than you or me. I would meet you halfway and converse, these maddogs will behead you halfway.

Nobodys Home's picture

How do you have rights when You Are Illegal? A Non-Citizen! A citizen of another country and not a U.S. citizen? A person that by U.S. law has been a criminal since you stepped foot in this country in violation of immigration laws? Fvck U SnowFLAKE!

TheMayor's picture

Save America, shoot them on site!

 

TheMayor's picture

Save America, shoot them on site!

 

East Indian's picture

The right to get a fair trial for entering the country illegally. It is a crime, after all. All illegal immigrants are criminals ipso facto. 

And jury system will not apply. 

Sudden Debt's picture

Well, the penalties for employing those immigrants who don't pay taxes needs to be 1 million a piece to the employer.

You have to punish the employers for hiring them.

 

The average wages decline in America of this.

It's not a competition problem, it's a greedy profit problem.

These employers destroy companies who play it fair.

These employers bankrup a country.

These employers stimulate the immigration bigtime.

 

Each case should be an example.

BorraChoom's picture

I agree Brother, but........... Trump’s dumb deal: MORE Australian detainees will be arriving in the US after the first of the year  

  Ten single Afghan men have gotten their approval to come to the US along with other mostly Muslim migrants who have been in Australian off-shore detention, some for nearly four years.  As many as 90 could join the 50 detainees from Australia (the ‘refugees’ Australia doesn’t want!) who have already arrived in the US.

Remember readers these are predominantly men who attempted to illegally enter Australia by boat a few years ago.

From Australia’s The New Daily (hat tip: Jon):

Dozens of refugees on Australia’s offshore processing centre on Nauru are learning if they will be moving to the United States to start a new life, The New Daily can reveal.

US authorities were expected to hand out more than 70 final decisions on the resettlement deal from Monday. The exact number of men, women and children due to learn their fate was unclear, but Ian Rintoul from Refugee Action Coalition said it could be as much as 90.

An Iranian family was rejected on Monday, along with some single applicants, Iranian detainee Saman told The New Daily on Monday afternoon.

https://refugeeresettlementwatch.wordpress.com/2017/11/27/trumps-dumb-de...

 

Nobodys Home's picture

Start at 1 mill and bracket the fines. The more you hire, the more expensive it gets.

Faeriedust's picture

Sorry, it's a classic competition problem.  As in, any business that tries to take the high road and NOT violate the (unenforced) law, will have significantly higher costs than its competitors who do.  They will have to charge higher prices or hand out lower dividends to shareholders.  Banks will refuse to loan them money on as good of terms as their competitors, who already have better margins because of the lower wages.  They will quickly be in a position of relative cash shortage, with higher prices driving away customers, and lower dividends driving away investment capital.  Meaning that they will fail to compete and be driven out of the market by the bad actors.  It's a classic example of why the free market doesn't work for any purpose except maximizing profits for a lucky few.

Stormtrooper's picture

Were the illegals Swiss?

LoveTruth's picture

Latinos maybe working more than the blacks, but the quality of their work is low. Look at the way they live in their countries, and be realistic whether they'll learn to live like the whites. IMO,  Better keep the US white, build the wall to protect the local citizens and the school system from latino students who go to school to basically chit chat. 

If watch the Los Angeles news, you'll know what I am talking about. (Endless crime from the latinos and the blacks.) Do you want the whole of US to turn latino style country?

BorraChoom's picture

Latinos beat the hell out of the Savage Snackbarians, Latinos are decent humans unlike these brainwashed Mohammie worshippers.

Berspankme's picture

I will give you that the majority of the latinos around here are willing to work and don't cause much problem yet

BorraChoom's picture

I noticed one thing about these Latinos, they don't have the pride in their work that they had. But these kids were raised in the US Edu System. They still out perform the US kids.

Berspankme's picture

This is the problem Short term view is cheap labor. Long term view is destruction of culture. This is what the lefty/marxists want. Name a latino country that isn't hard left. They know they can easily manipulate the poor. 

Arctic Frost's picture

How’s that racism going for ya? Just want to let you know, you far right freaks couldn’t George Washington elected. You need US!! Middle leaning conservative voters, that is a FACT. So keep talking like a bunch of buttheads like this guy.

IF the worst case scenario happens and we lose Trump in 2020 to some far left freak, it’ll be YOUR FAULT!

Faeriedust's picture

I have never noticed any lack of quality in work done by Hispanics, legal or illegal, unless their job depended on fluent and comprehensible use of the English language.  Lovely Hispanic girl cut my lumber for me at Lowes this weekend -- her Daddy didn't forbid her to touch power tools growing up!  OTOH, calling for hotel reservations and being locked in a two-way battle of incomprehension where neither the clerk nor I can understand each other's "English" is a nightmare.  And having to ask a co-worker to talk to his supervisor because he can't understand the letters of the alphabet as I spell them is godawful embarrassing.

"Latino style" countries somehow all derive from colonial administrations with high income disparity, where a very few wealthy people get a superb education and a very high standard of living, supported by millions in absolute poverty.  Funny, but that sounds like where we're headed with or without immigrants.

 

shankster's picture

You should see Miami..disgusting place.

Rex Andrus's picture

HA HA

HA HA

HA HA

Wild E Coyote's picture

The great McDonalds could not replace immigrants with their super robots?
I keep hearing the robots are just round the corner.

CanadaGoose's picture

Lesson:  Hire valid American citizens!

gilhgvc's picture

doin the jobs americans won't do....for 7.35 and hour

BorraChoom's picture

Add in the taxpaid Gimmes and they come out very well. Free housing, free Medical, Free Dental work for the future Jihadi, that is some real bucks.

Berspankme's picture

If we ended the welfare state you wouldn't need a single illegal. Blacks in Chicago have like 50% unemployment rate. Should fill those positions by noon except.................

Yen Cross's picture

   What am I supposed to do with all this fresh sawdust?

BorraChoom's picture

Compost! Fresh Veggis Good For U.

MrSteve's picture

Push it into your car's transmission to smooth out the ride?