Arizona's new hiring law hits Chandler businesses
Decline in holiday business blamed on Arizona's new hiring law
Sarah Muench
The Arizona Republic
Dec. 9, 2007 08:17 PM

Some Chandler businesses are taking a hit this holiday season as their main clientele - undocumented immigrants - leaves the city before the state's new hiring law goes into effect on Jan. 1.

Shops, such as Quintero Jewelry & More, are struggling to stay afloat as customers either pack up and move or save money while they see how the new law will affect them.

The issue, while primarily an economic challenge, is not without political controversy.

Many argue that business owners whose principal clientele comprises undocumented immigrants have assumed a certain level of risk by catering to workers who are in the country illegally.

And as the immigration issue becomes hotter in Arizona, many state and local leaders are redoubling their efforts to crack down on those who employ or otherwise cater to the migrant population.

Chandler long has been a hotbed of immigration tension. Ten years ago, the municipality made headlines for a controversial roundup of undocumented immigrants, which resulted in allegations of civil-rights violations.

Political issues aside, other things are adding to business owners' stress: An overall economic downturn, especially in the housing and construction markets, also is causing job losses for many undocumented immigrants, making them more likely to rein in their spending, economists say.

As a result, some businesses in Chandler that are usually bustling with customers this time of year seem like ghost towns.


"We have many illegal (customers) around this area, and all of them have left for Mexico, Guatemala, New Mexico," said Teresa Quintero, who owns Quintero Jewelry & More, inside Plaza del Sol shopping center near Arizona Avenue and Galveston Street.

"Now, we can't even pay half our (store's) rent."

The new hiring law, signed by Gov. Janet Napolitano in July, is aimed at clamping down on illegal immigration in Arizona by pulling the plug on the job magnet that has drawn undocumented immigrants to the state by the tens of thousands throughout the past decade.

The state's hiring law is scheduled to take effect Jan. 1, but business groups have asked a federal judge to toss it out, arguing that it is unconstitutional and that it invites racial profiling.

These business groups favor a federal solution that allows foreign workers to enter the United States legally to fill gaps in the national labor market.

In the meantime, immigrants in large numbers are holding on to their money and waiting to see what happens in early 2008.

At the same time, though, Chandler is seeing the effects on its businesses right now.


Loss of sales
More than two months ago, Teresa Quintero said her jewelry store was full of customers.

"A lot of workers used to come in to buy gifts to send to their family in Mexico, Guatemala and Honduras," Quintero said. " 'I want this watch to send home,' they would say."

Now, Quintero and her husband Urbano are "just holding on," and even hand out fliers on the street.

"But nobody comes," she said.

Dawn McLaren, a research economist at Arizona State University, said that part of the reason for the lack of business is the economic slowdown.

"That's why immigrants leave," McLaren said.

"If there are no jobs, they don't want to be there. They take their demand with them."

CarnicerÃ*a and PanaderÃ*a Mama Mia, a grocery store with Mexican products near Arizona Avenue and Pecos Road, is trying to counteract the loss of customers by appealing to a different clientele.

"We are changing the store over to more of an Anglo-American store, but we'll keep it (mostly) an ethnic store," said George Mihilli, the store's owner.

He said he has lost 50 percent to 60 percent of his sales.

"They spent money. What their (legal) status is none of my business," he said. "They brought the state business."

Mihilli said he's advertising in English-language newspapers, significantly lowering prices on products and axing services like Western Union wire transfers and international phone cards.

El Rancho supermarket near Arizona Avenue and Ray Road usually gears up to restock its shelves continually during the holiday season, said Phillip Vigil, store manager. This year, he's hearing concerns from his vendors.

"There would normally be a lot more business this time of year," Vigil said. "A product that would have multiple turns hasn't changed. It's not because (undocumented customers) are saving for Christmas or that new Wii or PlayStation, but they don't know if they'll be out of their apartment."

Looking for work
Fewer undocumented immigrants are gathering at a Chandler day-labor center and along Arizona Avenue soliciting work, said Mainor MartÃ*nez, an undocumented construction worker from Campeche, Mexico.

"There's no work. They aren't hiring anyone, and it's really difficult," MartÃ*nez said.

Two of the workers who normally gather at the center recently left the state because they couldn't pay rent or buy food, MartÃ*nez said. Many have been forced to share apartments and several have become homeless because of lack of work.

"No one is buying anything anymore; the business has stopped," said FermÃ*n Valenzuela, an undocumented landscaper from Sinaloa, Mexico.

Slower growth
Many businesses are putting their own growth plans on hold, until the uncertainty about the law and its impact has passed, McLaren said.

The Quinteros, for example, said they planned to open a second store in Chandler, but after the hiring law gained approval, they decided to wait.

Some businesses won't be able to survive the economic slump and will close down, McLaren said.

Becky Jackson, president and CEO of Chandler Chamber of Commerce, said that businesses that take a turn for the worse can have a negative effect on the community. Advance preparation, she said, is key to minimizing that impact.

Any business that serves a particular clientele is going to suffer when the unforeseen happens, she said.

A version of this story may have appeared in your community Republic.

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