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

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.

Comments

Luc X. Ifer gatorengineer Wed, 11/29/2017 - 20:56 Permalink

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.

In reply to by gatorengineer

Luc X. Ifer Déjà view Wed, 11/29/2017 - 21:54 Permalink

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.

In reply to by Déjà view

Evan Wilson Theosebes Goodfellow Wed, 11/29/2017 - 18:24 Permalink

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./sarcOn 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.

In reply to by Theosebes Goodfellow

legalize Evan Wilson Wed, 11/29/2017 - 18:29 Permalink

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.

In reply to by Evan Wilson

whatswhat1@yahoo.com Slippery Slope Wed, 11/29/2017 - 22:33 Permalink

"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.

In reply to by Slippery Slope

Mazzy Dun_Dulind Wed, 11/29/2017 - 18:06 Permalink

"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.

In reply to by Dun_Dulind

shimmy Wed, 11/29/2017 - 17:50 Permalink

"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.