Worker rules called likely to hurt economy
Immigration crackdown could bring labor shortages in agriculture, Chertoff acknowledges.
By Nicole Gaouette
Los Angeles Times Staff Writer
http://www.latimes.com/news/nationworld ... crosspromo
6:34 PM PDT, August 10, 2007

WASHINGTON -- Homeland Security Secretary Michael Chertoff predicted painful economic fallout from the array of immigration enforcement measures the administration unveiled Friday in an attempt to choke off the jobs "magnet" that draws illegal immigrants.

The changes, which would stiffen work-site enforcement, add border agents and increase penalties for rogue employers, could cause havoc in immigrant-dependent industries like agriculture, hospitality and healthcare, Chertoff acknowledged. "There will be some unhappy consequences for the economy out of doing this," he said in an interview with the Los Angeles Times.

Chertoff said he had little sympathy for businesses that hire illegal workers, saying they should have seen the crackdown coming after the Senate failed to pass immigration reform. "We have been crystal clear about what the consequences would be," he said.

The announcement of the multi-agency initiative -- made by Chertoff and Commerce Secretary Carlos Gutierrez -- was the Bush administration's first extensive explanation of how it plans to ramp up the fight against illegal immigration. In a statement, President Bush called the measures "important" and promised "to take every possible step" to strengthen the nation's "broken immigration system." The enforcement approach is aimed partly at placating GOP conservatives who are livid about the administration's failure to enforce existing immigration laws and the president's support for a plan that would have allowed illegal immigrants to become citizens.

But it also could create a political climate that might lead to the comprehensive changes the administration has sought, including a guest worker program and some accommodation for the estimated 12 million illegal immigrants in the United States. Chertoff said the provisions, some of which take effect in 30 days, could push corporate America to apply more pressure on Congress to reconsider broad reforms.

"I'm not a lawmaker, but I presume, at some point, somebody's going to take a look and say we've got to find a way to address this problem and that's probably going to require some legal changes," he said.

But he stressed that "this is not an effort to punish Congress." Gutierrez framed the issue more starkly. "We do not have the workers our economy needs to keep growing each year. The demographics simply are not on our side," he said. "Ultimately, Congress will have to pass comprehensive immigration reform."

Business groups, unions, immigrant advocates and religious organizations protested the provisions. But longtime opponents of comprehensive reform greeted the news happily.

"This is exactly what the American people were saying. . . . when they said why don't we start out by enforcing existing laws and prove that Washington will do the right thing?" said Rep. Brian P. Bilbray, R-Calif. "Once we reinstate confidence in the government, then we can come back and talk about the other stuff." Bilbray compared ending the nation's economic dependency on illegal immigration to weaning an addict off drugs. "If there's some pain, it's not because we didn't have amnesty, it's because we didn't enforce the law 20 years ago when we should have," he said.

Others expressed skepticism about the Department of Homeland Security's ability to enforce the measures, pointing out that the department cannot even come up with the number of high-skilled visa-holders in the country. "The agency that can't count is now going to go on this enforcement gig," said Rep. Zoe Lofgren, D-Calif., chairwoman of the House immigration subcommittee. "We'll see how they do." Business groups predicted the effect would be broadly felt.

"It's going to be awful; the harvest is going to be awful," said Laura Foote Reiff, co-chair of the Business Immigration Group, anticipating the impact on agriculture, where more than half of the 2.5 million workers are thought to be illegal. "People will feel it when they go grocery shopping, when they read in the newspaper that we're importing our meat from China." Many of the measures the administration highlighted Friday are already under way, including a dramatic increase in criminal prosecutions of employers with illegal workers. Immigration officials made 24 arrests in the 1998-99 fiscal year and have made 742 in the first 10 months of this fiscal year.

Some measures are at the early planning stages. A couple are a few months from launching, including a requirement that federal contractors use E-Verify, an electronic system to confirm that their employees are legal.

Others had been under consideration for some time, including a move to force businesses to fire workers with discrepancies in their Social Security data or face penalties of up to $10,000. That regulation takes effect in 30 days and has companies intensely concerned, in part because the error rate in Social Security data for U.S. citizens has been estimated as high as 11 percent. Because many illegal immigrants work under fake Social Security numbers or use those of citizens, it is considered a relatively easy way to identify them.

"We're giving employers a clear choice," Chertoff said. "If you take the steps we lay out, you'll have a safe harbor. If you don't, you're putting yourself at risk." He characterized the effect of the Social Security rule on most businesses as a "thunderstorm." "There will only be a tsunami if I have a business where I have 80 percent of my employees I fear are illegal," Chertoff said. "If I'm basically confident my work force is legal, it's going to be a little thunderstorm. But for some it will expose patterns and practices that may be illegal." Chertoff brushed aside concerns that the rule could drive businesses to hire employees off the books. "An employer who does that is making a deliberate decision to compound their legal difficulties by committing tax crimes as well as immigration crimes," he said.

Administration officials began meeting to discuss these steps in June, immediately after the Senate failed to overhaul the nation's immigration laws. The White House presided over sessions that included the Departments of State, Labor, Commerce, Homeland Security and Education. Officials from Treasury and the Social Security Administration also took part.

Chertoff said the administration held off on implementing these measures in hopes that a legislative overhaul would provide a tougher arsenal. "We looked at these programs late last year, early this year, and we thought, you know, this is kind of a half-measure. Wouldn't it be better to get the full measure and the sharpest, newest tools if Congress passes them and gives it to us?" he said.

While some of the new measures would add to the Department of Homeland Security's enforcement personnel, Chertoff admitted that it would not have the agents to track down every employer who breaks the law. Instead, he argued that high influence, high visibility enforcement would act as a deterrent.